The U.S. Commodity Futures Trading Commission (CFTC) today filed and simultaneously settled charges against Jeffrey J. Kinseth of Cedar Rapids, Iowa, and his Iowa-based company, Virtual Vision Inc., for fraudulently soliciting individuals to participate in a pooled investment vehicle, misappropriation of investor funds, and issuance of false statements to conceal trading losses and fraud. Kinseth is not registered with the CFTC.
The CFTC’s order requires Kinseth and Virtual Vision jointly and severally to pay a $575,000 civil monetary penalty and restitution of $574,936. The order also permanently prohibits Kinseth and Virtual Vision from engaging in any commodity-related activity, including trading, and from registering or seeking exemption from registration with the CFTC.
The order finds that between March 2008 and September 2009 Virtual Vision, by and through Kinseth acting as its director and president, fraudulently solicited and accepted about $975,360 from approximately 11 individuals to trade commodity futures contracts and leveraged or margined off-exchange foreign currency contracts through Virtual Vision, a pooled investment vehicle.
Kinseth and Virtual Vision misappropriated the majority of the funds, over $800,000, to make payments to other investors and for Kinseth’s personal use, according to the order. Of the funds traded, Kinseth and Virtual Vision consistently sustained losses and concealed their trading losses and misappropriation by creating and issuing false account statements to investors that reflected purported trading profits, the order finds.
CFTC Division of Enforcement staff members responsible for this case are Brian G. Mulherin, Timothy M. Kirby, Gretchen L. Lowe, and Vincent A. McGonagle.
jeffrey j. kinseth and his company, virtual vision inc., cftc division of enforcement, u.s. commodity futures trading commission, iowa, usd, timothy m. kirby, gretchen l. lowe, brian g. mulherin, vincent a. mcgonagle, cedar rapids, finance, commodity futures trading commission, commodities market, futures contract, hedge funds, commodity futures modernization act, commodity pool, director and president
News: Federal Court In Illinois Orders Defendants Richard C. Regan And Pro Trading Course, LLC To Pay More Than $600,000 In Restitution And Civil Monetary Penalties To Settle CFTC Anti-Fraud Action
1500 days ago,(2012/06/14) - News Articles
The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge James B. Zagel, of the U.S. District Court for the Northern District of Illinois, entered an or...
298 days ago,(2015/09/30) - Ancoa
Enables contextualised surveillance of voice trading activity to detect market abuse LONDON, SAN FRANCISCO, NEW YORK, 30 September, 2015 — Ancoa, providers of contextua...
1486 days ago,(2012/06/28) - gnodal
Vic Mahadevanappointed to Gnodal board, joins US and UK industry leadersPALO ALTO, CA and BRISTOL, UK – June 27, 2012 -- Gnodal Limited – the high performance data...
346 days ago,(2015/08/12) - Fixnetix
Acquisition Accelerates CSC’s Strategic Growth Plan in Capital Markets and Offers Clients Winning Combination of Global Capabilities, Outsourcing Expertise and Mission C...
News: Federal Court Enters Order Settling CFTC $85 Million Forex Fraud Action Against California Resident Peter Son And His Companies SNC Asset Management, Inc. And SNC Investments, Inc. - Defendants Ordered To Pay $5 Million Civil Monetary Penalty - Son Pleaded Guilty To Federal Charges In Related Criminal Action And Was Sentenced To 180 Months In Prison And Ordered To Pay Over $60 Million In Restitution
1549 days ago,(2012/04/26) - News Articles
The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court supplemental consent order requiring defendants Peter Son (Son) of Danville, Calif., an...
News: CFTC Settles Charges Against Defendant Robert Mihailovich, Jr. For Making False Statements To The CFTC - Federal Court In Texas Orders Mihailovich, Jr. To Pay $40,000 Fine And Bans Him From Registering With The CFTC For 10 Years And From Trading For Five Years
1501 days ago,(2012/06/13) - News Articles
The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court consent order against defendant Robert Mihailovich, Jr. of Rockwall, Texas, requiring him to pay ...
News: CFTC Orders Nevada Resident Luis Salazar-Correa And His Company, Prosperity Team, LLC, To Pay More Than $2.6 Million To Settle CFTC Anti-fraud Forex Action
1508 days ago,(2012/06/06) - News Articles
The U.S. Commodity Futures Trading Commission (CFTC) today filed and simultaneously settled charges against Luis Salazar-Correa of Las Vegas, Nev., and his Nevada-ba...
292 days ago,(2015/10/06) - Celoxica
Delivering small footprint & high message volume processing for multiple markets at ultra-low latency London and New York, 5 October 2015: Celoxica, the leading pro...