The top U.S. derivatives regulator on Wednesday filed a civil complaint against Hunter Wise Commodities and accused the company of fraudulently marketing commodity contracts.
The Commodity Futures Trading Commission (CFTC) alleges that Hunter Wise, based in Las Vegas, had improperly taken in at least $46 million in customer funds since July 2011.
The 2010 Dodd-Frank law expanded the CFTC's jurisdiction over such transactions, it said, demanding that they be executed on exchanges or other regulated markets.
A lawyer representing Hunter Wise said the company had a different view on how to interpret the law, and had asked a judge in the Northern District of Illinois to make a ruling in the matter, which was due on Dec. 11.
The CFTC's complaint showed how the defendants claimed to sell physical metals to retail customers. Customers would make a down payment, and the companies would then arrange loans for the balance of the purchase price.
But these statements were false, and
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