The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a federal court order requiring defendants Trans Global Investments, LLC (Trans Global), a Nevada company and unregistered Commodity Pool Operator (CPO), and its President, Charles Leroy Timberlake, a Texas resident, to pay $200,000 in restitution and a $140,000 civil monetary penalty to settle CFTC charges of commodity pool fraud.
The consent order of permanent injunction, entered on January 14, 2013, by Judge Gloria M. Navarro of the U.S. District Court for the District of Nevada, also imposes permanent trading and registration bans against Timberlake and Trans Global and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.
The CFTC had sued Trans Global and Timberlake, along with CIS Commodities LLC of Henderson, Nev., and its founder and president, Allen Nicholas Ward, of Aspen, Colo., on June 29, 2011 (see Related Link: CFTC Press Release 6068-11). As to Timberlake and Trans Global, the CFTC complaint alleged that Timberlake fraudulently solicited at least $220,000 from five individuals for the purpose of trading commodity futures and option contracts through the Trans Global pool. The complaint further alleged that Timberlake falsely represented that he was registered with the CFTC as a CPO when, in fact, he has never been registered with the CFTC in any capacity. Finally, the complaint also alleged that Timberlake made false representations of material facts and issued false statements to Trans Global pool participants regarding the profitability and value of their investments.
The litigation continues as to the remaining defendants.
The CFTC Division of Enforcement staff members responsible for this case are Elizabeth N. Pendleton, William P. Janulis, Melissa Glasbrenner, Rosemary Hollinger and Richard B. Wagner.