Federal commission alleges fraud in civil action filed against A - KTIV News 4 Sioux City IA: News, Weather and Sports

Federal commission alleges fraud in civil action filed against Alton, IA man

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WASHINGTON (KTIV) -

A federal commission has filed a civil enforcement action against an Alton, Iowa, man, with fraud. Investigators say he lost $160,382 of his clients' money, but kept $45,369  in fees.

The Commodity Futures Trading Commission alleges Lon Friedrichsen solicited clients under the names of Lon Kummer and Lon Richardson, but omitted that these were false names.

Between December of 2014 and May of 2017, the CTFC says Friedrichsen fraudulently solicited clients in the New York City area, and throughout the United States, by making false statements which violates the Commodity Exchange Act. Specifically, the complaint says Friedrichsen solicited clients via Craigslist ads, telephone, and e-mail.

The complaint alleges Friedrichsen induced clients to provide him with access to their personal commodity futures accounts, then traded commodity futures in those accounts, and advised clients to conceal his involvement.

According to the complaint, Friedrichsen fraudulently solicited at least $396,735 from at least twelve clients, lost at least $160,382 of his clients' money, and retained at least $45,369 in fees.

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