Futures Pool Founder Ran $11M Ponzi Scheme: CFTC

Law360, New York (March 12, 2009, 12:00 AM EDT) -- Following a related action taken by the U.S. Securities and Exchange Commission, the U.S. Commodity Futures Trading Commission has filed suit against index futures trading pool founder John M. Donnelly, accusing him of running an $11 million Ponzi scheme, and has obtained injunctive relief to freeze his assets.

On Wednesday, the commodities trading regulator filed the suit in U.S. District Court for the Western District of Virginia on the heels of another suit against Donnelly filed by the SEC.

The CFTC suit alleges that starting as...
To view the full article, register now.