Commodities fraud investigations are typically initiated after regulators suspect a broker of deceitful, fraudulent practices
These practices may involve misrepresenting the nature of an investment risk, failure to register a solicitation of funds or commingling broker funds with those of a client.
Working with financial analysts and commodities experts, Dan Guthrie analyzes the decisions and actions of his client within the market conditions of the time, establishing their compliance with the Commodities Exchange Act (CEA).
Investigators may begin talking to suspects, their co-workers or investors in an attempt to find anything that will justify opening a full-scale investigation.
Of course, investigators won’t always tell you if you’re under investigation, nor will they share all the information they have regarding a case. As a result, you could be a suspect and not even know it.
In today’s economic climate of corporate scandals and financial meltdown, it’s not uncommon for federal investigators to go on a “fishing expedition”
Commodities Fraud and Federal Investigators
Commodities fraud investigations involve auditing and reviewing the actions of a broker and the specific transactions in question.
Investigators review commodities futures contracts in order to determine if fraudulent statements were made in connection with them. The bank accounts and assets of a broker may be reviewed in order to identify any unexplained sources of income or unusual activity that can be connected with his or her activities as a broker.