CFTC charges Rober Mihailovich and Growth Capital with fraudulent solicitation

CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term Charges Growth Capital Management LLC and Felon Robert Milhailovich, Sr., with Fraudulently Soliciting More than $30 Million to Trade Commodity Futures and Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term

Son charged with making false statements to the CFTC for failing to disclose father’s role.

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) charged Robert Mihailovich, Sr., and Growth Capital Management, LLC, (GCM), both of Rockwall, Texas, with fraudulent solicitation in connection with the trading of commodity futures contracts and leveraged foreign currency (forex). Mihailovich, Sr., is a felon who was on supervised release while he was soliciting for and operating GCM.

The CFTC’s complaint, filed in the U.S. District Court for the Northern District of Texas on July 27, 2010, also charges that GCM, a registered commodity trading adviser and a commodity pool operator, and Robert Mihailovich, Jr., also of Rockwall and the listed principal and registered associated person of GCM, made false statements in required regulatory filings with the CFTC by failing to disclose that his father, Mihailovich, Sr., was a controlling principal of GCM.

The CFTC’s complaint alleges that, since at least June 2008, GCM and Mihailovich, Sr., fraudulently solicited and accepted more than $30 million from approximately 93 customers to invest in futures and forex through discretionary accounts traded by GCM. To induce new investors, Mihailovich, Sr., made false representations claiming to be a successful commodity futures trader and touting GCM as having a profitable trading record. According to the complaint, Mihailovich, Sr., stated that he never experienced a losing trade. However, actual trading accounts managed and controlled by Mihailovich, Sr., realized net losses.

Mihailovich, Sr., also failed to disclose to customers that he had a federal felony conviction for mail fraud, was ordered to pay approximately $197,000 in restitution, served 27 months in prison and was on a three-year supervised release.

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Enfgrowthcomplaint07272010 from Finance Magnates