October 17, 2014

CFTC Revokes Registrations of Abdul Sultan Walji and His Company, Arista LLC, Based on Court’s Permanent Injunction Order Prohibiting Them from Committing Further Fraud and on Walji’s Conviction for Criminal Commodities Fraud

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced today that it has revoked the registrations of Defendants Arista LLC, a California company with its principal place of business in Newport Coast, California, and its owner Abdul Sultan Walji a/k/a Abdul Sultan Valji) of San Juan Capistrano, California. Arista had been registered with the CFTC as a Commodity Pool Operator, and Walji had been registered as an Associated Person of Arista.

The CFTC initiated revocation proceedings against Arista and Walji on February 20, 2014 (see CFTC Press Release 6863-14), following the CFTC’s successful injunctive action against them on December 3, 2013, in the U.S. District Court for the Southern District of New York (see CFTC Press Release and Consent Order 6786-13) and Walji’s criminal conviction for commodities fraud.

On September 4, 2014, CFTC Judgment Officer Philip V. McGuire issued an Initial Decision on Default finding that Arista and Walji are subject to statutory disqualification from CFTC registration based on the Consent Order for permanent injunction entered against them, which (1) found that Walji and Arista misappropriated investor funds and made false statements to investors, the National Futures Association (NFA), and the CFTC; and which (2) enjoined Walji and Arista from further violations of the anti-fraud provisions of the Commodity Exchange Act, as charged, and from trading or applying for registration. That Consent Order also ordered Walji and Arista to pay restitution of more than $8.25 million and civil monetary penalties of $6.45 million and $1.54 million, respectively. The court’s Consent Order stems from the CFTC’s injunctive action filed against the Defendants on September 28, 2012 (see CFTC Complaint and Press Release 6372-12).

The Judgment Officer also found that Walji is subject to statutory disqualification based on his conviction for criminal commodities fraud, among other offenses, in connection with these same activities. He was sentenced in the U.S. District Court for the Southern District of New York to 151 months of imprisonment on November 15, 2013.

The Judgment Officer’s Initial Decision on Default, revoking the registrations of Arista and Walji, became a final order of the CFTC on October 6, 2014.

The CFTC thanks the NFA for its assistance in this matter.

CFTC Division of Enforcement staff members responsible for this case are Michael P. Geiser, Douglas K. Yatter, Lenel Hickson, Jr., and Manal M. Sultan.

Media Contact
Dennis Holden
202-418-5088

Last Updated: October 20, 2014