CFTC Obtains Judgment Against Wisconsin Man for Fraud, Misappropriation Scheme

2025-12-19 · Regulation · QuoteReporter

Summary

The Commodity Futures Trading Commission (CFTC) has successfully obtained a consent order against Robert Narvett, a Wisconsin resident, for his involvement in a fraudulent scheme related to commodity futures trading. Announced on December 18, 2025, the judgment includes substantial financial restitution and a permanent ban on trading activities for Narvett.

Key Details

The U.S. District Court for the Eastern District of Wisconsin mandated that Narvett pay over $185,000 in restitution to the victims he defrauded. Additionally, the court’s order permanently prohibits him from trading and registering with the CFTC and bars him from further violations of the Commodity Exchange Act. This legal action concludes the CFTC’s enforcement case initiated in March 2021, where Narvett faced charges of fraud, misappropriation, and unauthorized activities as a commodity trading advisor.

Implications

This judgment underscores the CFTC’s commitment to upholding the integrity of commodity markets by rigorously enforcing compliance with regulatory standards. The permanent trading ban on Narvett serves as a deterrent to potential violators, signaling the consequences of fraudulent activities in commodity trading. Market participants are reminded of the importance of adherence to regulatory requirements and the severe repercussions of misconduct.

Background

From December 2013 to March 2021, Narvett engaged in deceptive practices by convincing clients to entrust him with managing their commodity futures trading accounts, only to misappropriate these funds and incur trading losses. He misrepresented his trading success and methodologies to solicit investments, while failing to disclose his lack of registration as a commodity trading advisor with the CFTC and a prior fraudulent judgment against him by a Wisconsin federal court in a Securities and Exchange Commission case. Narvett’s criminal activities extended beyond the CFTC’s civil enforcement, leading to charges of wire fraud, bank fraud, money laundering, and aggravated identity theft by the U.S. Attorney’s Office for the Eastern District of Wisconsin. He pleaded guilty to wire fraud and money laundering in May 2022 and received a 15-year prison sentence, along with a directive to pay $1.68 million in restitution.

Next Steps

The consent order issued by the court marks the resolution of the CFTC’s enforcement action against Narvett. With this phase concluded, there are no further CFTC actions outlined against Narvett in this matter. However, the CFTC, in collaboration with other federal agencies like the FBI and the U.S. Attorney’s Office, continues to monitor and enforce regulatory compliance to protect market participants and maintain market integrity.

Original CFTC Announcement

Title: CFTC Obtains Judgment Against Wisconsin Man for Fraud, Misappropriation Scheme
Date: 2025-12-19
Source: CFTC.gov