The Blotter: U.S. Bank hit with injunction due to PFG accounts

Also: Action against Banc de Binary and CFTC-SEC warning on binary option schemes

Illinois


Federal court orders Melissa C. Rushton to pay $50,000 to settle charges pertaining to her husband’s fraudulent operation of Summit Trading & Capital LLC

 

The CFTC obtained a federal court order on May 30, 2013 requiring defendant  Melissa C. Rushton of Gridley, Ill. to pay a $50,000 civil monetary penalty to settle fraud and other charges stemming from her role in the operation of Summit Trading & Capital LLC (Summit).  The court’s order also imposes permanent trading and registration bans against her and prohibits her from violating the anti-fraud and other provisions of the CEA  and commission regulations, as charged.

The order, entered by Judge James E. Shadid of the U.S. District Court for the Central District of Illinois, stems from a CFTC enforcement action filed November 29, 2011 against Summit, Melissa Rushton, and her husband Brant L. Rushton, charging them with fraudulent operation of a commodity pool.  On Feb. 1, 2013, Judge Shadid granted summary judgment against Brant Rushton and Summit and subsequently ordered them to jointly pay approximately $1.6 million in restitution to defrauded pool participants and a civil monetary penalty of approximately $3.2 million.  In July 2012, Brant Rushton pled guilty to criminal charges in a parallel federal criminal action stemming from the same conduct.  Melissa Rushton was not charged in the criminal action.

The current order finds that Melissa Rushton was a controlling person of Summit and that upon learning of the fraud being perpetrated by her husband, she failed to act but instead allowed the fraud to continue until the CFTC filed this action.

For last week's Blotter.

Other CFTC actions this week.

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