October 20th, 2015
In a related criminal action, Watson pleaded guilty to wire fraud and was sentenced to 12 years imprisonment
Washington, DC - Judge Mark A. Goldsmith of the U.S. District Court for the Eastern District of Michigan entered an Order requiring Defendant Alan James Watson of Clinton Township, Michigan, to pay $37,224,928.82 in restitution and a $27 million civil monetary penalty, plus interest on both amounts, for his role in operating a commodity pool Ponzi scheme.
Previously, on January 5, 2012, the Court had entered a Consent Order against Watson, banning him from trading in, or participating in transactions involving, commodity futures or options, swaps, and foreign currency exchange (forex).
The Orders stem from a CFTC Complaint filed on March 10, 2011, which charged Watson, and Defendants Cash Flow Financial LLC (CFF), also of Clinton Township, and Michael S. Potts of Mountville, Pennsylvania, with fraudulently soliciting at least $45 million from more than 600 commodity pool investors and misappropriating the majority of pool participants’ funds (see CFTC Press Release 6002-11). According to the Complaint, the Defendants misappropriated funds for personal use and to pay principal and purported returns to existing pool participants, as is typical of a Ponzi-type scheme. The Complaint also alleged that Relief Defendant The Jedburgh Group (a/k/a Jedburgh Group International, Inc.) of Longwood, Florida, received funds to which it had no legitimate interest as a result of the Defendants’ fraudulent conduct. Jedburgh has been ordered to return such funds.
On August 26, 2015, the court granted the CFTC’s motion for a Default Judgment against CFF and ordered CFF to pay restitution and a $27 million civil monetary penalty, plus interest. The court also permanently enjoined CFF from trading in, or participating in transactions involving, commodity futures or options, security futures products, swaps, and forex.
On June 24, 2015, the court ordered Potts to pay restitution and a $558,542.61 civil monetary penalty, plus interest, and to disgorge $186,180.87 in illicit profits. The Order permanently enjoins Potts from trading in, or participating in transactions involving, commodity futures or options, security futures products, swaps, and forex.
Related Criminal Action
In a related criminal action brought by the U.S. Attorney’s Office for the Eastern District of Virginia, Watson pleaded guilty to one count of wire fraud and was sentenced to 12 years imprisonment and ordered to pay more than $37 million in restitution. back...
Washington, DC - Judge Mark A. Goldsmith of the U.S. District Court for the Eastern District of Michigan entered an Order requiring Defendant Alan James Watson of Clinton Township, Michigan, to pay $37,224,928.82 in restitution and a $27 million civil monetary penalty, plus interest on both amounts, for his role in operating a commodity pool Ponzi scheme.
Previously, on January 5, 2012, the Court had entered a Consent Order against Watson, banning him from trading in, or participating in transactions involving, commodity futures or options, swaps, and foreign currency exchange (forex).
The Orders stem from a CFTC Complaint filed on March 10, 2011, which charged Watson, and Defendants Cash Flow Financial LLC (CFF), also of Clinton Township, and Michael S. Potts of Mountville, Pennsylvania, with fraudulently soliciting at least $45 million from more than 600 commodity pool investors and misappropriating the majority of pool participants’ funds (see CFTC Press Release 6002-11). According to the Complaint, the Defendants misappropriated funds for personal use and to pay principal and purported returns to existing pool participants, as is typical of a Ponzi-type scheme. The Complaint also alleged that Relief Defendant The Jedburgh Group (a/k/a Jedburgh Group International, Inc.) of Longwood, Florida, received funds to which it had no legitimate interest as a result of the Defendants’ fraudulent conduct. Jedburgh has been ordered to return such funds.
On August 26, 2015, the court granted the CFTC’s motion for a Default Judgment against CFF and ordered CFF to pay restitution and a $27 million civil monetary penalty, plus interest. The court also permanently enjoined CFF from trading in, or participating in transactions involving, commodity futures or options, security futures products, swaps, and forex.
On June 24, 2015, the court ordered Potts to pay restitution and a $558,542.61 civil monetary penalty, plus interest, and to disgorge $186,180.87 in illicit profits. The Order permanently enjoins Potts from trading in, or participating in transactions involving, commodity futures or options, security futures products, swaps, and forex.
Related Criminal Action
In a related criminal action brought by the U.S. Attorney’s Office for the Eastern District of Virginia, Watson pleaded guilty to one count of wire fraud and was sentenced to 12 years imprisonment and ordered to pay more than $37 million in restitution. back...
