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New Jersey investment man charged with fraud

A man is facing criminal charges related to commodity pools that he was conducting. The New Jersey man has been charged with fraud after he was accused of embezzling nearly $200,000 from investors. He generated an automated system that would trade futures contracts. Out of his investors, some of them were trained on how to use the system.

Reportedly, the man founded two commodity pools that used an automated system he developed between 2007 and 2008. Since then, he has persuaded a number of investors to place approximately $1.4 million into the pools. He informed the investors that his company would be paid a 35 percent fee on net profits made, as well as other miscellaneous fees. Instead of following the agreement, he allegedly paid himself a much larger amount than anticipated.

The Commodity Futures Trading Commission alleges that the man obtained almost $512,000, however, he was only to receive $320,000. He has been accused of misusing the money from the pools for inappropriate expenses. In 2009, the funds reportedly lost money and they were closed out a year later. He has not retained an attorney at this time.

Being charged with fraud may cost an individual stiff penalties, including a possible jail sentence, if a criminal conviction is actually secured. New Jersey prosecutors typically seek to convict to the fullest extent of the law for these types of accusations and will surely seek to use any compelling and relevant evidence against the accused individual. Having an understanding of the law and local court procedures may help the man protect his legal rights and secure a favorable result.

Source: nj.com, N.J. man charged with investment fraud, Ed Beeson, Sept. 30, 2013

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