For Release: May 13, 2009
Michigan Resident Ordered To Pay More Than $300,000 in Sanctions for Defrauding Clients
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) obtained an order against Steven G. Schroeder of Grand Rapids, Michigan, requiring Schroeder to pay a $130,000 civil monetary penalty and to repay nine investors a total of $187,703 that Schroeder lost when he managed their commodity futures trading accounts.
The order, entered on May 1, 2009, by Judge Gordon J. Quist of the U.S. District Court for the Western District of Michigan, Southern Division, stems from a CFTC complaint filed on September 27, 2006 (see CFTC News Release 5238-06, October 4, 2006). Previously, on October 6, 2006, the Judge entered an order permanently barring Schroeder from engaging in any commodity futures trading activity for himself or others, while reserving financial sanctions (see CFTC News Release 5249-06, October 18, 2006).
The court found in the previously entered order that Schroeder had made material misrepresentations to prospective managed account clients, including false statements about the size of his personal trading accounts, the profitability of his past trading for himself and his clients, and his educational background. The court also determined that Schroeder had sent a fabricated account statement to prospective clients showing an alleged $1 million balance in his personal account and a phony personal commodity trading track record showing profits of $730,000.
Pursuant to the May 1, 2009 order, a freeze order remains in place, limiting Schroeder’s use of any funds or assets in his possession until there is full satisfaction of the ordered restitution and civil monetary penalty.
The following CFTC staff members are responsible for this case: Susan B. Padove, Elizabeth Streit, Ava Gould, William W. Heitner, Jr., Scott R. Williamson, Rosemary Hollinger, and Richard Wagner.
Last Updated: May 13, 2009