Michael Ackerman, formerly employed as a broker on the New York Stock Exchange (NYSE), is confronted with substantial consequences due to his involvement in a fraudulent scheme centered around deceptive cryptocurrency trading.
Michael Ackerman, a resident of Alliance, Ohio, is set to face severe restrictions that include being prohibited from engaging in trading within any markets regulated by the Commodity Futures Trading Commission (CFTC) and being disallowed from registering with the agency.
In a significant development, a federal court has mandated Michael Ackerman, previously employed as a broker on the New York Stock Exchange (NYSE), to provide an astonishing sum of $54 million as restitution and penalties. The United States Commodity Futures Trading Commission (CFTC) has issued a “default judgment” against the former broker, citing his involvement in deceptive cryptocurrency trading activities and defrauding his victims.
A judge from the Southern District of New York court has made a ruling based on the request of the United States Commodity Futures Trading Commission (CFTC) stating that the Ohio resident, Michael Ackerman, will be legally prevented from participating in any markets as per the CFTC’s demand. In 2020, Ackerman faced accusations of defrauding around 150 investors by making false promises of exceptionally high returns of up to 15%. As a result, he managed to accumulate a total of $33 million through this fraudulent scheme.
“Despite his lack of success as a trader, Ackerman resorted to deceptive tactics to hide his fraudulent activities. He gave customers fabricated accounting statements, newsletters that falsely claimed high trading returns, and fake screenshots showing inflated amounts of money being managed. These actions were intended to cover up his fraudulent behavior and deceive his clients”.
In addition, he is required to pay a total of $54 million, which includes $27 million as restitution to the victims he defrauded and an additional $27 million as a civil monetary fine. These financial obligations are tied to his involvement in a deceptive operation related to trading digital assets.
In 2020, the United States Commodity Futures Trading Commission (CFTC) accused Ackerman of running a fraudulent scheme where he deceived individuals and entities into depositing a minimum of $33 million with him under the pretense of trading digital commodity assets. The CFTC alleged that Ackerman solicited funds and unlawfully appropriated them for his own benefit. The scheme affected over 150 people and entities that fell victim to his deceptive practices.