CFTC Imposes $280,000 Fine on Florida Individuals for Registration and Reporting Violations

The Commodity Futures Trading Commission (CFTC) issued an order filing and simultaneously settling charges against Dennis K. Thomas and John J. Bartoletta, both Florida residents, for registration and reporting violations under the Commodity Exchange Act (CEA) and CFTC regulations.

Specifically, the order finds that Thomas acted as an unregistered associated person (AP) of a commodity pool operator (CPO) and failed to comply with requirements related to CPO reporting and recordkeeping, and Bartoletta acted as an unregistered AP of a CPO and as an unregistered commodity trading advisor (CTA).

The order requires Thomas and Bartoletta to pay, jointly and severally, a $280,000 civil monetary penalty and to cease and desist from further violations of the CEA and CFTC regulations, as charged.

The order finds that, beginning approximately August 2015 and continuing through March 2017, Thomas and Bartoletta operated a commodity pool through a now-defunct Florida-registered corporation called the Capital Trading Advisory Group LLC (CTAG), formerly of Seminole, Florida, and accepted funds from at least 35 individual participants.

According to the order, Thomas was the sole owner of CTAG and acted as an unregistered AP by soliciting and collecting funds from pool participants for the CTAG pool. Thomas also served CTAG in a principal capacity, operated the CTAG pool under an invalid claim of exemption from certain CPO requirements, and failed to provide required pool disclosure statements and reports.

The order further finds that Bartoletta furnished commodity trading advice to pool participants and directed trading in the custodial account holding CTAG participant funds while not registered as a CTA as required. Bartoletta also acted as an unregistered AP of CTAG by soliciting and collecting funds from prospective pool participants for the CTAG pool.