A recent example of a large-scale commodities fraud scheme involved a trader in New Jersey. In 2011, he collaborated with outside traders to place orders in order to maximize his profits. This scam involved tens of thousands of fake trades involving the Euro FX and Pounds FX currency futures, as well as the Asia-Pacific region. The scheme caused massive disruptions in market futures, forcing other traders to buy and sell at different times and at varying prices.
The penalty for a conviction for commodities fraud depends on how serious the crimes are. Generally, a conviction for fraud carries a maximum sentence of 25 years in prison and a $1 million fine. However, some cases are less serious, with a fine of just $5,000. While this punishment may seem steep, it isn’t uncommon for individuals to earn millions through the scheme. Having an attorney with experience in these cases will help you craft a compelling case to prove your innocence.
In one case, a commodities fraud lawyer contacted victims from the Latin American immigrant community to solicit their money. He told them their money would be invested in short-term commodity contracts, and that the returns would be high enough for them to quit their day jobs. He promised unrealistically high returns to lure them into investing in his scheme. The scammers also forged their clients’ personal information to obtain more money than they actually owned.