Commodities Online, LLC and Commodities Online Management, LLC

On April 1, 2011 and April 8, 2011, the SEC obtained respectively the appointment of a Receiver over and permanent injunctions against Commodities Online, LLC and Commodities Online Management, LLC (the “companies”).  According to the complaint, beginning in January 2010, the defendants told potential investors they had raised approximately $27.5 million from investors by offering investment opportunities in purported pre-sold commodities contracts and equity shares in the companies.  The SEC alleged that the defendants represented to potential investors that it would purchase commodities only after arranging for a buyer and seller, and investors would “earn 5% or more per month without price speculation.”  According to the complaint, however, the defendants performed only a limited percentage of commodities transactions and dissipated investor funds by sending millions of dollars to companies controlled by its co-founder and former managing member, and one of its vice-presidents. 

For more information about the SEC’s action, you can read Litigation Release No. 21940 (Apr. 21, 2011).

The Court appointed David S. Mandel as Receiver.  For the latest information about the Receivership, you can visit the Receiver’s website.