The United States Commodity Futures Trading Commission (CFTC) its near a completion of its case against David Seibert, the individual behind a fraudulent investment scheme operating under names such as SEI Equity Investments and Great American Funding LLC.
According to the latest status report filed by the CFTC at the Texas Western District Court, the regulator is about to start settlement talks with the defendant.
Let’s recall that, in September 2020, the CFTC brought a civil enforcement action charging David Seibert, a Lakeway, Texas resident, with fraudulently soliciting and misappropriating more than $8.3 million of participant funds that he lost in undisclosed trading of commodity interests.
Seibert has agreed to the entry of a finding of liability by the court that he violated the Commodity Exchange Act by misappropriating commodity pool participant funds and by making misrepresentations to participants about the use of their funds. In the Consent Order issued back in September 2020, Seibert agreed to pay full restitution to defrauded participants in an amount to be determined later.
On June 3, 2021, the Department of Justice (DOJ) filed a felony criminal complaint against Seibert, On June 28, 2021, this Court accepted Seibert’s plea of guilty to two criminal counts, Wire Fraud and Money, Laundering. Sentencing in that case has been set for November 5, 2021.
Although the parties in the CFTC case had agreed to defer discussions aimed at resolving damages in the civil case until any criminal case was fully resolved, these developments in the criminal case suggest that a civil case resolution might now be possible. Seibert’s guilty plea included fact findings and a specification of the amount of restitution owed to victims. The parties in this civil case have agreed to now commence settlement discussions.
The CFTC is developing a settlement proposal to soon share with Seibert’s counsel and will report to the court on the progress of these negotiations when it files the next status report by October 15, 2021, if not sooner.