September 29, 2016

CFTC Orders Aden Rusfeldt to Pay in Total More than $3.2 Million in Restitution and a Civil Monetary Penalty for Fraudulent Omissions in Connection with His Operation of ETF Trend Trading

Rusfeldt Failed to Disclose that He was Sued by the CFTC for Fraud in 2007 and Permanently Enjoined from Engaging in Any Commodity Interest Related Activity

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today filed an Order instituting proceedings and settling charges against Respondent Aden Rusfeldt (a/k/a “Big A”) of Vail, Arizona. The CFTC Order finds that Rusfeldt fraudulently failed to disclose to prospective and current customers of his company, ETF Trend Trading, that he was prohibited from engaging in any commodity-interest related activity under a prior Court Order.

CFTC’s 2007 Civil Complaint and the Court’s 2008 Consent Order against Rusfeldt

On March 12, 2007, the CFTC filed a Complaint in the Southern District of Texas, alleging that Rusfeldt, through his company Rusfeldt Investments LLP (Rusfeldt Investments), fraudulently solicited members of the retail public (see CFTC Press Release 5312-07). On March 27, 2008, the Court entered a Consent Order of Permanent Injunction and Other Equitable Relief (Consent Order), which includes findings of fact and conclusions of law that Defendants violated certain anti-fraud provisions of the CEA (see CFTC Press Release 5475-08). The Consent Order also ordered Rusfeldt and Rusfeldt Investments to pay restitution and a civil monetary penalty, and permanently prohibited Rusfeldt and Rusfeldt Investments from engaging in certain activities. Specifically, the injunctive provisions of the Consent Order permanently prohibit Rusfeldt and Rusfeldt Investments from engaging, directly or indirectly, in any activity related to trading in any commodity interest.

Today’s CFTC Order Finds that Rusfeldt Failed to Disclose the Court’s 2008 Consent Order against Him

Today’s CFTC Order finds that, despite the permanent injunction in the Court’s Consent Order, from approximately July 2008 to April 2015, Rusfeldt, often using the alias “Big A,” sold a variety of commodity interest related services and educational materials to more than 500 customers through ETF Trend Trading. Rusfeldt did not disclose to any prospective or current customers that he had been sued previously by the CFTC for engaging in fraud, and that as a result he had been permanently prohibited from engaging in any commodity interest related activity. Rusfeldt continued to omit these facts until he sold ETF Trend Trading in April 2015. Accordingly, the CFTC Order finds that Rusfeldt defrauded customers by failing to disclose material facts to customers.

The CFTC Order requires Rusfeldt to pay restitution in the amount of $2,238,170 and a civil monetary penalty of $980,000; permanently prohibits him from trading on any registered entity, as defined in the Commodity Exchange Act (CEA), or registering with the CFTC; and bars him permanently from engaging in any commodity interest related activities. The Order also requires Rusfeldt to cease and desist from violating the provisions of the CEA and CFTC Regulations, as charged.

The CFTC cautions that Orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets.  The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.

CFTC Division of Enforcement staff members responsible for this matter are Amanda Burks, Kara Mucha, Alison Wilson, and Rick Glaser.

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CFTC’s Fraud Advisories

The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud.

Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online. 

Media Contact
Dennis Holden
202-418-5088
 

Last Updated: September 29, 2016