CFTC Accuses Calif. Man Of $14M Ponzi Scheme

Law360, New York (January 11, 2011, 7:11 PM EST) -- The U.S. Commodity Futures Trading Commission has accused an admitted California Ponzi schemer and his commodities pool operators, Spirit Investments Inc. and Increase Investments Inc., of running a $14 million scam against 30 investors.

In a complaint filed Friday in the U.S. District Court for the Southern District of California, the CFTC claimed that Scott Bottolfson and his companies ran two pools, which traded commodity futures contracts and options, that turned out to be largely bogus.

From at least 2002 until August 2010, Bottolfson lured prospective...
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