September 15, 2011
CFTC Charges California Resident James D. Crombie and Paron Capital Management, LLC with Making False, Fictitious, or Fraudulent Statements to the National Futures Association
CFTC also charges defendants with solicitation fraud.
Washington, DC –The U.S. Commodity Futures Trading Commission (CFTC) today filed a civil lawsuit in the U.S. District Court for the Northern District of California charging California resident James D. Crombie and his firm, Paron Capital Management, LLC (Paron), of Tiburon, Calif., with providing false, fictitious, or fraudulent statements to the National Futures Association (NFA) and with issuing fraudulent promotional materials.
Specifically, the CFTC complaint alleges that, during a March 2011 NFA audit of Paron, Crombie and Paron made false, fictitious, or fraudulent statements to prevent the NFA from discovering that they were using fraudulent promotional materials to solicit clients to trade commodity futures. The fraudulent promotional materials were based on falsified and counterfeit trading account statements, according to the complaint. Crombie and Paron allegedly made subsequent false, fictitious, and fraudulent statements to the NFA in an attempt to further conceal their conduct and impede the NFA’s audit of Paron.
In its continuing litigation, the CFTC seeks a return of ill-gotten gains, restitution to defrauded customers, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of the federal commodities laws.
The CFTC appreciates the cooperation and assistance of the NFA in this matter.
CFTC Division of Enforcement staff members responsible for this case are John Einstman, Tara R. Kelly, Brian Mulherin, JonMarc Buffa, Randolph Lam, Paul G. Hayeck, and Joan Manley.
Last Updated: September 15, 2011