STATESBORO, Ga. (CN) – The Commodity Futures Trading Commission obtained a permanent injunction against a Georgia investment firm and its founder, who ran a Ponzi scheme in commodity futures, the CFTC said.
U.S. District Judge B. Avant Edenfield issued the order against Joseph Autry and Autry Capital Management, both of Statesboro.
They are permanently banned from trading and registering with the CFTC and were fined $1,000.
Judge Edenfield noted that in a related criminal proceeding in July 2011, Autry was sentenced to 2 years and 3 months in federal prison and ordered to pay $155,000 in restitution after pleading guilty to wire fraud.
According to the order, Autry took money a total of $265,000 from seven customers to trade commodity futures contracts through ACM.
Autry sued money to pay his own debts and expenses, lost money through trading and issued false account statements, according to the court. He also used new money to pay fraudulent returns to earlier investors.
The injunction resolves a CFTC enforcement action filed in September 2010, charging Autry and ACM with fraud, misappropriation, and issuing false statements to customers.