CFTC Goes After Commodity Dealer

MANHATTAN (CN) - SK Madison Commodities and its two owners defrauded investors of $1.3 million, the Commodity Futures Trading Commission claims in court.

The CFTC sued SK Madison Commodities, Michael James Seward, of Redington Shores, Fla., and Yan Kaziyev aka Ian Kaziyev, of Briarwood, N.Y., in Federal Court.

The CFTC claims that since October 2010 the defendants have "defrauded members of the public ('pool participants') of more than $1.3 million in connection with pooled investments in commodity futures contracts."

The complaint states: "Defendants' portrayal of their trading track record and trading strategy is a sham. In reality, defendants used SKMC to defraud pool participants and enrich themselves at pool participants' expense. Defendants did not trade and earn the consistent annual profits that they claimed but instead used a majority of the pool participants' money for themselves. In addition, Defendants made far more than a handful of trades per month resulting in large commissions fraudulently charged to the pool participants."

The CFTC seeks restitution, an injunction and treble damages.

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