The Commodity Futures Trading Commission (CFTC) has issued a recent order that both initiates and concludes proceedings against Peter L. Bryant from Texas and his firm, Bryant Capital Trade Management Corporation. These actions were taken due to allegations of fraud while operating as an unregistered commodity trading advisor (CTA) and for the failure to properly register as a CTA. In light of these charges, the order mandates that both Bryant and Bryant Capital collectively pay $55,655.90 in restitution and a $195,000 civil monetary penalty. They are further required to cease any further breaches of the Commodity Exchange Act (CEA) and CFTC regulations as outlined in the charges. Alongside these penalties, the order imposes a four-year trading and registration ban on both Bryant and Bryant Capital.
The case history reveals that from around February 2014 to December 2022, Bryant and Bryant Capital engaged in unregistered CTA activities through various means like direct outreach, digital communications, newsletters, and online advertisements. These communications offered advice on trading commodity options, futures, and swaps in energy markets, promoting their paid trading advisory services.
These solicitations allegedly contained multiple false and deceptive statements about their business and performance, expertise and experience in energy derivatives markets, client base, past achievements, and even the applicability of CFTC registration requirements. Some instances include fabricating the number of clients they served, the scope of their analyses, and their supposed achievements in cost reduction for clients. In contrast, the order finds these claims to be baseless and fabricated. The respondents also inaccurately presented their business as an "exempt swap intermediary" that didn't require CFTC registration
The order establishes that these misleading representations led to at least $55,655.90 in client losses. The CFTC acknowledges that orders requiring compensation to victims might not guarantee the recovery of lost funds due to the potential insufficiency of wrongdoers' financial resources. The CFTC remains committed to advocating for customer protection and holding wrongdoers accountable. Key members of the Division of Enforcement staff responsible for this case include Nina Ruvinsky, Bryan Hsueh, Allison Passman, Scott Williamson, and Robert Howell.
