February 4, 2011


Federal Jury finds Damien Bromfield and Donovan Davis, Jr. liable.

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that a federal jury sitting in Orlando, Fla., returned a verdict on February 3, 2011, finding that Damien Bromfield (Bromfield) of Ocoee, Fla., and Donovan Davis, Jr. (Davis, Jr.) of Palm Bay, Fla., violated federal commodities law and CFTC regulations when, in connection with a commodity pool they operated, they stole customer funds and lied to customers by issuing false account statements that represented that customers were making money when, in fact, they were losing money.

During the course of the more than two-week trial, the CFTC presented compelling evidence from, among others, victims of Bromfield’s and Davis, Jr.’s fraud, from former employees of Bromfield’s and Davis, Jr.’s company, Capital Blu Management LLC, and from Bromfield himself. The CFTC’s evidence showed that defendants solicited more than 100 customers in 2007 and 2008 to invest approximately $17 million in a commodity pool run by Bromfield and Davis, Jr. Rather than trade all the money, Bromfield and Davis, Jr. misappropriated millions of dollars for their own use, including paying for the purchase and use of a private aircraft and luxury automobiles and paying themselves salary to which they were not entitled.

The next stage in the trial, which was held before the Honorable Judge John Antoon, is for Judge Antoon to determine the amount of disgorgement and restitution that Bromfield and Davis, Jr. must pay to defrauded victims, the amount of civil monetary penalties that each must pay and other equitable relief. A damages hearing before Judge Antoon is currently scheduled for March 2 and 3, 2011.

The following CFTC staff are responsible: Patrick Pericak, Daniel Jordan, Heather Johnson, Erica Bodin, Melissa Glasbrenner, Bobby Williams, Sandy Rim, Jessica Harris, Melissa Strom, Matthew Elkan, Eugenia Vroustouris, Kenneth McCracken, Rick Glaser and Richard Wagner.

Media Contact
Dennis Holden

Last Updated: February 4, 2011