Federal Court Orders Arizona Man And His Company Pay Over $2 Million In Restitution For Commodities Fraud

Published: Thursday, November 16, 2017 - 5:25pm

The Commodity Futures Trading Commission (CFTC) reported Monday that Judge David G. Campbell of U.S. District Court for the District of Arizona entered a consent order against defendants Derek Springfield and his company, Draven, LLC, both of Mesa, Arizona, finding that they fraudulently solicited and received at least $1.8 million from approximately 112 commodity pool participants in connection with pooled investments in commodity futures and foreign currency exchange.

The order said the defendants engaged in fraudulent sales practices, misappropriated pool participant funds, and provided false account statements to clients.

The court ordered the defendants to pay approximately $1.5 million in restitution to defrauded customers and an $800,000 civil monetary penalty and imposes permanent bans on trading and registration. The court order also prohibits the defendants from committing further violations of the Commodity Exchange Act and CFTC Regulations.

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