Craig Clavin solicited at least $345,000 for trading commodity futures. Instead, the money was used for personal expenses and to pay purported profits to some pool participants like any other Ponzi scheme.
The Commodity Futures Trading Commission
The U.S. District Court for the Eastern District of New York has imposed a $370,000 in monetary penalty and relief in the context of the charges against Craig L. Clavin and his company Lighthouse Futures.
The CFTC had issued a complaint against the defendants for fraudulent solicitation and misappropriation of participants’ money; sending false reports of profitable trading to participants to conceal their fraud; commingling of pool funds with non-pool funds; and failure to register with the CFTC as required.
The defendants, who admitted to all of the findings made in the complaint, are permanently banned from trading and registering with the CFTC.
The defendants admitted that, from at least 2015 through approximately May 2019, they falsely represented that they were running a successful CFTC-regulated commodity pool, generating returns of 10 to 14 percent.
Craig Clavin and his firm solicited at least $345,000 from pool participants to be used for trading commodity futures. Instead, the money was used for personal expenses and to pay purported profits to some pool participants like any other Ponzi scheme.
The order also found that the defendants sent investors fraudulent pool reports and annual summary statements showing false trading…