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by Mike Caswell

The U.S. Commodity Trading Futures Commission has requested a $204.6-million judgment against Ontario's Jonathan Cartu and two other Canadians who were part of an options scheme that promised investors returns as high as 85 per cent. (All figures are in U.S. dollars.) The group inflicted losses of $51.1-million through overseas call centres that targeted U.S. investors over a period of five years, the CFTC says. Among other things, investors were promised quick returns on stock indices and commodities such as gold and silver, according to the CFTC.

The proposed penalties are contained in a motion that the CFTC filed in federal court in Texas on Feb. 28, 2024. The $204.6-million includes restitution of $51.1-million, representing the amount that the men realized from the scheme. On top of that, the CFTC says that a $153.4-million fine, representing triple the gains, is warranted. The CFTC is further seeking orders that would prohibit future violations.

The penalties would represent a default judgment, the defendants having failed to respond to the CFTC's allegations. In the case of Mr. Cartu, he initially defended the matter, denying that he did anything wrong. He said that there was no evidence he did anything to violate U.S. laws, as he had ever solicited a U.S. customer. He asked that the judge dismiss the case before it even went to trial.

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