For Release: March 2, 2010
Federal Court Issues Preliminary Injunction against Jay Nolan and His Company, Lodge Capital Group, LLC, Charged with Commodity Pool Fraud
Court’s asset freeze against the defendants continued.
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a preliminary injunction against defendants Jay C. Nolan of Wilmette, Ill. and his company, Lodge Capital Group, LLC, based in Northfield, Ill. The CFTC charged the defendants in January, 2010, with misappropriation and fraud in operating a commodity pool that solicited approximately $3.9 million from at least 5 individuals (see CFTC Press Release 5779-10, January 29, 2010, and CFTC v. Jay C. Nolan, et al., No. 10-cv- 493 (N.D. IL. 2010)).
The preliminary injunction order, entered by U.S. District Court Judge Charles R. Norgle of the Northern District of Illinois, maintains the asset freeze entered against the defendants by the court on January 26, 2010, and prohibits them from further violations of the Commodity Exchange Act.
The CFTC alleges that the defendants made misrepresentations and failed to disclose material facts to pool participants regarding the profitability of the pool and the pool’s performance. The complaint further alleges that the defendants sent false account statements to participants, misrepresenting the value of their interests in the pool and the pool’s assets and liabilities and that Nolan misappropriated customer funds.
In its continuing litigation, the CFTC seeks a return of ill-gotten gains, restitution to defrauded investors, civil monetary penalties and permanent injunctions against the defendants.
The CFTC appreciates the assistance of the Federal Bureau of Investigation and the United States Attorney’s Office for the Northern District of Illinois, which filed a criminal complaint against Nolan on November 24, 2009.
The following CFTC Division of Enforcement staff members are responsible for this case: Diane M. Romaniuk, Ava M. Gould, Mary Beth Spear, Scott R. Williamson, Rosemary Hollinger and Richard B. Wagner.
Last Updated: April 2, 2010