MINNEAPOLIS (AP) -- The U.S. Commodity Futures Trading Commission says a Minnesota man, his company and a commodity pool he operated have agreed to pay nearly $800,000 in restitution and penalties to settle a commodity pool fraud case.
Leonard Nauman, of Golden Valley; Pension America Inc. and Futures Profit Making LLC had been accused in federal court of fraudulently soliciting customers from 1997 through 2000 to invest at least $600,000 in various commodity pools they ran.
The complaint, filed in 2000, alleged that they misrepresented their past trading success to potential investors -- mostly in the Minneapolis and Brainerd areas -- and misappropriated investors' funds for their personal use.
Nauman, PAI and FPM, in consenting to the order, neither admitted nor denied the allegations in the complaint.
The consent order requires Nauman, PAI and FPM to pay restitution of $556,452 and requires Nauman and PAI to pay a civil penalty of up to $242,432 after paying restitution.
Nauman and his companies also are barred permanently from trading for others. Nauman is barred from trading for his own account, or any account in which he has an interest, for 10 years or until he pays his restitution obligation in full.
The CFTC alleged that the defendants claimed to potential customers that they would receive returns of 40 percent annually if they invested in four commodity pools. The CFTC said the defendants were not actually successful commodity traders, and had issued monthly commodity statements to investors that made false claims of profitable trading.
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