For Release: September 29, 2008
CFTC Charges North Carolina Man and Two Companies with Solicitation Fraud and Misappropriation of Approximately $1.3 Million of Customer Funds in Commodity Pool Scheme
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) filed a federal lawsuit charging Tyrone “Cauzae” McCall, McCall Business Group, LLC (MBG), and MBG Global, LLC (MBG Global), both of Charlotte, North Carolina, with solicitation fraud and misappropriation of approximately $1.3 million of customer funds in connection with a commodity pool scheme. McCall’s last known place of residence is the Union County jail in Monroe, North Carolina.
The CFTC filed the civil enforcement action on September 26, 2008, in the U.S. District Court for the Western District of North Carolina. The complaint alleges that McCall, MBG, and MBG Global, fraudulently solicited at least two church congregations and 17 members of the general public to invest approximately $1.3 million in a commodity pool. The complaint further alleges that, contrary to McCall’s representations, only a fraction of the commodity pool participants’ funds were traded. Instead, the complaint alleges that McCall misappropriated the majority of the funds for his personal benefit or to pay monthly pool participant obligations in a manner characteristic of a Ponzi scheme.
The CFTC’s complaint charges that, from at least September 2003 though March 2008, McCall misrepresented to pool participants that he enjoyed an illustrious career on Wall Street with a major investment firm. He also allegedly provided pool participants with agreements guaranteeing a return of anywhere from 18 percent to 60 percent within a year or less through trading that included futures. As alleged, McCall not only consistently lost money in his trading, but indicated in account opening documents in 2004 that he had no experience trading in futures.
In its litigation against the defendants, the CFTC is seeking preliminary and permanent injunctive relief, the return of funds to defrauded customers, the repayment of ill-gotten gains, permanent trading and registration bans, and civil monetary penalties for each violation of the Commodity Exchange Act.
The CFTC appreciates the assistance of the North Carolina Department of the Secretary of State, the Securities Division and the United States Attorney’s Office for the Western District of North Carolina in this matter.
The following CFTC Division of Enforcement staff members are responsible for this case: Tracey Wingate, Mary Kaminski, John Dunfee, Paul Hayeck and Joan Manley.
Last Updated: September 29, 2008