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Jenkins ran a Ponzi scheme through his company Harbor Light Asset Management allegedly trading S&P 500 Futures
According to a press release by the CFTC the list of fraudsters that have been heavily fined for violating US laws has grown with one more name in it. The latest addition is Michael Anthony Jenkins and his company Harbor Light Asset Management LLC (HLAM). The fine comprises a restitution part totaling $1.3 million and a civil monetary penalty amounting to more than $3.9 million. In addition the defendant is prohibited from further violating the Commodity Exchange Act and CFTC regulations.
According to the press release that the CFTC has issued on the matter HLAM and Jenkins have managed to fraudulently solicit at least $1.79 million from about 377 people, mainly residents of North Carolina. The NC District Court has found that HLAM has falsely misrepresented return to clients of the company claiming that it would be wiring the funds to a trading account for the purpose of engaging in speculative trading with S&P 500 futures.
However in reality Mr. Jenkins has been sending false information to his clients, distributing false spreadsheets and statements that accounted for non-existing trades, profits and inflating the value of the company’s investments. Additionally Jenkins has failed to register with the CFTC as a Futures Commission Merchant and misappropriated $748,827 to trade gold, oil and S&P futures on his personal account.
It has all started back in January 2011 and went on for a full year. In November 2012 a complaint was filed with the CFTC and the regulator has charged the defendant on the 23rd of the same month. Apparently this is one of the rare occurrences when the time between a court filing and a full resolution have been achieved quite quickly.
For the full press release visit CFTC’s website.