What You Need to Know
- Centurion and Svejda allegedly misappropriated about 80% of pool participant funds.
- Neither Centurion nor Svejda was registered with the CFTC.
- Offerings were related to exchange-traded commodity futures contracts.
The Commodity Futures Trading Commission recently levied an action against Centurion Capital Management Inc. and its principal, Terry Michael Svejda, over fraudulent offerings related to exchange-traded commodity futures contracts.
Beginning in about 2012 and continuing to the present, Svejda told pool participants that he would use pool funds to trade exchange-traded commodity futures contracts, according to the complaint, filed in U.S. District Court for the District of Nebraska.
He solicited and received at least $790,050 from at least 27 individuals, many of whom were farmers.
Instead, the order states, Centurion and Svejda misappropriated approximately 80% of pool participant funds.
The misappropriated funds were used to trade futures in Svejda’s personal trading account, to pay personal expenses of Svejda and corporate expenses of Centurion, the order states.