February 19, 2016
CFTC Charges Canadian Resident Ryan S. Magee with Fraud and Acting as an Unregistered Commodity Pool Operator
Magee Allegedly Fraudulently Solicited at Least $2 Million from at Least 30 Pool Participants in the U.S. and Canada, Misappropriated Participant Funds, and Sent Participants False Statements Reporting Non-Existent Profits
Magee’s Father, David W. Magee, and his Wife, Dalyne Rae Magee, Are Charged with Acting as Unregistered Associated Persons of Ryan Magee
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) filed a civil enforcement action in the U.S. District Court for the Eastern District of Wisconsin charging Ryan S. Magee of Calgary, Alberta, Canada, with fraud and also with acting as a Commodity Pool Operator, without being registered with the CFTC, as required. The CFTC Complaint also charges Ryan Magee’s father and wife, David W. Magee and Dalyne Rae Magee, also both Calgary residents, with acting as Associated Persons of Ryan Magee, without being registered with the CFTC, as required.
Specifically, the CFTC’s Complaint alleges that, between at least March 2010 and through at least August 2013, Ryan Magee fraudulently solicited and accepted at least $2 million from at least 30 individuals from the U.S. and Canada, claiming that he would trade commodity futures and other products on their behalf. Ryan allegedly 1) misappropriated at least CAD 893,837 of the funds (approximately $653,000 at current exchange rates) and 2) lost at least CAD 1,360,348 trading in a brokerage account denominated in Canadian dollars and at least $13,015 in two accounts denominated in U.S. dollars. As alleged, to hide the losses and misappropriation, Ryan Magee also sent pool participants false account statements that reported non-existent profits. David and Dalyne Magee solicited funds for the Pool and handled participant monies, according to the Complaint.
In its continuing litigation, the CFTC seeks restitution, disgorgement of ill-gotten gains, civil monetary penalties, trading and registration bans, and injunctions against further violations of the Commodity Exchange Act.
The CFTC’s Enforcement Division thanks the staff of the Alberta Securities Commission (ASC) for their significant assistance in this matter. Last year, in an enforcement action brought by the ASC, the Magees were each found liable for violating the Alberta Securities Act, and Ryan Magee was found liable for perpetrating a fraud and making misleading or untrue statements contrary to the Alberta Securities Act. The ASC is the Canadian regulatory agency responsible for administering the province of Alberta’s securities laws.
CFTC Division of Enforcement staff members responsible for this action are Michael D. Frisch, Jon J. Kramer, Melissa Cavers, David Terrell, Scott R. Williamson, and Rosemary Hollinger.
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CFTC’s Commodity Pool Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Commodity Pool Fraud Advisory, which warns customers about a type of fraud that involves individuals and firms, often unregistered, offering investments in commodity pools.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
Last Updated: February 19, 2016