U.S. derivatives regulators have charged a Calgary man and a couple of his family members in connection with an alleged commodity pool fraud.
The U.S. Commodity Futures Trading Commission (CFTC) on Friday filed a civil enforcement action in U.S. district court charging Ryan Magee with fraud and acting as an unregistered commodity pool operator. The CFTC also charged Magee’s father, David, and his wife, Dalyne Rae Magee, with alleged registration violations. None of the allegations have been proven.
The CFTC’s complaint alleges that Ryan Magee fraudulently solicited at least US$2 million from at least 30 individuals in both the U.S. and Canada, “claiming that he would trade commodity futures and other products on their behalf”. It also alleges that he lost approximately C$1.36 million of that through trading, that he misappropriated almost C$900,000, and that he covered this up by sending investors false account statements that reported non-existent profits. The regulator claims that David and Dalyne Magee solicited funds for the pool and handled investors’ money.
The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, trading and registration bans, and injunctions against further violations in its case.
The U.S. regulator also notes that staff of the Alberta Securities Commission (ASC) have provided “significant assistance” in the case.
See: ASC bans three in failed day trading scheme
The ASC last year ordered trading bans, $893,837 in disgorgement and a $200,000 penalty against Ryan Magee, a $75,000 penalty against David Magee and a $50,000 penalty for Dalyne, along with $142,000 in costs, after ruling that they violated Alberta securities laws.