Commodities Trader Pleads Guilty to $2.7 Million Investment Fraud Scheme
A commodities trader already sanctioned by U.S. regulators has pleaded guilty to criminal fraud charges tied to an unregistered investment club that misled investors with fake account statements.
Commodities Trader Pleads Guilty to $2.7 Million Investment Fraud Scheme
A commodities trader who was already under sanctions from the U.S. Commodity Futures Trading Commission (CFTC) has pleaded guilty to criminal fraud charges connected to an investment club that allegedly deceived investors.
Brian Mitchell admitted guilt to one count of wire fraud, acknowledging that he misled investors as part of an unregistered commodity futures trading scheme operated through Young Pros Investment Group, a company he ran with Kevin Mack Jr.
According to authorities, between December 2020 and May 2022, Mitchell and his associate induced investors to put money into the scheme by providing false account statements. They also used assets from some participants to pay returns to others, a classic Ponzi-like structure. At the time, Mitchell was already subject to a 2021 CFTC order that barred him from trading for three years after he was found to have provided trading advice without being registered.
"Despite this prohibition, Brian Mitchell continued to solicit, accept, and trade investment funds belonging to third parties in commodity futures contracts, without disclosing to investors that he was subject to a trading ban," U.S. authorities alleged.
As part of his plea agreement, Mitchell agreed to pay $2.7 million in restitution to victims of the scheme. His sentencing is scheduled for October 7 in federal court.
In 2025, Mitchell, Mack, and Young Pros also faced disciplinary proceedings from Maryland securities regulators, who found they had sold unregistered securities, misled investors, and conducted trading activities without proper registration. The Maryland Attorney General's securities division issued a permanent ban and imposed a $650,000 fine.
Source: Finance et Investissement
Source: Google News MA — Crime (fr)