The Commodity Futures Trading Commission has detailed an order resolving the agency’s enforcement case against an Alliance, Ohio, man in connection with an alleged fraudulent digital asset trading scheme.
Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York issued a default judgment granting a permanent injunction against Michael Ackerman.
According to the CFTC, the order stems from a complaint the agency filed on February 11, 2020, alleging from August 2017 through December 2019, Ackerman operated a fraudulent scheme that solicited and misappropriated funds to purportedly trade digital commodity assets.
Additionally, the complaint further alleged that based on Ackerman’s fraudulent misrepresentations, more than 150 individuals and entities deposited at least $33 million with him.
The CFTC indicated the complaint also alleged that to entice potential customers to invest in his scheme, Ackerman knowingly and falsely represented that he was profitably trading digital commodity assets and earning monthly returns of approximately 15 percent.
Under the order, Ackerman is banned from trading in any CFTC-regulated markets and registering with the CFTC, according to the agency, and Ackerman is required to pay $27 million in restitution to defrauded victims and a $27 million civil monetary penalty in connection with the alleged fraudulent digital asset trading scheme.