Published Feb. 10, 2009
The U.S. Commodity Futures Trading Commission has obtained a judgment against former economist Al Parish that requires him to pay $40 million.
It also bars Parish, currently serving more than 24 years in prison for investment fraud, from ever again engaging in any commodity-related activity.
The federal agency that regulates commodity futures trading said Monday in a news release that Parish “lied to customers and misappropriated millions of dollars in customer funds.”
According to the order, entered Feb. 2 in U.S. District Court, Parish and Parish Economics fraudulently solicited about $40 million in investment for a commodity futures pool between 1986 and March 2007.
In lieu of an award of restitution and civil monetary penalties, Parish will be subject to a criminal judgment restitution obligation in excess of $40 million.
“Parish and Parish Economics misrepresented to pool participants that funds would be invested in commodity futures when, in reality, Parish misappropriated the vast majority of funds for his personal use,” a statement from the commission read.
Parish and Parish Economics also provided false futures account statements to pool participants and failed to provide required pool disclosure documents.
Parish was sentenced to prison in June. He pleaded guilty to three counts of investment fraud. Some 600 people lost $66 million through his Ponzi scheme.