Feisal Sharif Ordered to Pay Over $3 Million to Settle Fraud Charges
Feisal Sharif of Branford, Conneticut was ordered by a federal court to pay restitution of $2,230,000 to defrauded customers and a $900,000 civil monetary penalty, in connection with his fraudulent investment scheme, First Financial LLC.
Sharif was also sanctioned with permanent trading and registration bans for violations of the Commodity Exchange Act (CEA), according to CFTC complaint.
Feisal Sharif was charged with fraudulent solicitation, misappropriation, and registration violations. Moreover, he failed to register with the CFTC as a Commodity Pool Operator as required by the CEA, according to the findings in the Order.
Sharif, through his commodity pool First Financial LLC, fraudulently solicited and accepted over $5.4 million from at least 50 members of the general public to trade commodity futures contracts through said pool.
He traded only a portion of the pool participant funds in proprietary accounts and received significant losses overall and misappropriated the majority of it to pay to participants as so-called returns that he claimed were the profitable proceeds of their trading. He misappropriated the rest of the funds for personal use.
To conceal his fraud and trading losses Sharif issued false account statements that ostensibly reflect profits. He made excuses regarding the safety of pool participants’ investments when they inquired.
Sharif pled guilty to criminal violations of the CEA in a related criminal action and is scheduled to be sentenced in January 2014.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting investors with the recovery of their losses. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no obligation evaluation of their recovery options, at 585-310-5140.