Bailey McCann, Opalesque New York:
Illinois-based Oxford Capital and its principal Dimitry Vishnevetsky have been sanctioned by the U.S. District Court for the Northern District of Illinois following a complaint from the CFTC for commodities fraud and misallocation. The sanction amounts to $3.5m in penalties and fines. The court’s order also imposes permanent trading and registration bans against Vishnevetsky and Oxford and prohibits them from violating provisions of the Commodity Exchange Act, as charged.
As a result of a parallel criminal action brought by the US Attorney’s Office, Judge Castillo on March 4, 2013 sentenced Vishnevetsky to serve six years in prison. Vishnevetsky is currently incarcerated in the Federal Prison Camp in Duluth, Minnesota.
The court found that all of 2006 through April 2012, Vishnevetsky and Oxford fraudulently solicited approximately $1.74m from commodity pool participants and commodity customers. They defrauded pool participants by representing that their commodity pools had profitable performance records based on audited results when, in fact, they never conducted any trading for the pools. Additionally Vishnevetsky, individually and doing business as Hodges Trading LLC and Hodges Court Trading, defrauded other pool participants by misrepresenting that Hodges Trading issued Libor Notes and invested in commodity futures contracts to enhance the value of the purported Libor Notes. Vishnevetsky and Oxford also issued false account st......................
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