A Commodity Pool Ponzi Scheme Costs Investors $14 Million
The U.S. Commodity Futures Trading Commission (CFTC) issued a press release announcing charges against Scott Bottolfson, Spirit Investments and Increase Investments, all located in Encinitas, CA, for fraudulently soliciting $14 million from some 30 investors to invest in commodity pools to trade commodity futures contracts and options on commodity futures. The release (PR5962-11) continued to outline charges in its complaint.
The lawsuit filed in the Southern District of California alleges that Bottolfson promised investors, from 2002 through August 2010, that they would get a 20% fixed rate return on investments, that the investments were protected and guaranteed and that the investments in commodity futures were risk free. Needless to say, all of these representations were either false or misleading. Finally, Mr. Bottolfson represented that his investments were profitable, when in fact he lost $845,000 of the $2.97 million (nearly 30%) actually placed in the commodity pools. As is typical of most Ponzi schemes, the other $11 million or so was used to support a lavish lifestyle for Bottolfson and pay existing investors alleged profits.
Our securities law firm is investigating and handling similar cases for investors located in the Los Angeles area. Please contact us at 1-800-259-9010 for a confidential, no obligation consultation concerning your particular situation.