Littleton resident Michael Bruce Gale, doing business as Capital Management Group, has been accused by the U.S. Commodity Futures Trading Commission of defrauding investors in connection with operating a commodity pool to trade commodity futures contracts.
The allegations were announced Monday by the commission.
The CFTC said the civil anti-fraud enforcement action against Gale was filed in U.S. District Court in Denver under seal in late July.
The complaint also alleges that Gale, 64, made false statements to pool participants, misappropriated pool funds, commingled investor funds with pool funds and failed to register as a commodity pool operator with the CFTC.
The federal agency alleged that from at least the summer of 2007 through the present, Gale, individually and doing business as CMG, fraudulently solicited and accepted at least $742,606 from at least three individuals to trade commodity futures on the pool’s behalf.
The agency said that Senior U.S. District Judge John Kane entered an emergency order freezing Gale’s assets and prohibiting the destruction or alteration of books and records.
Attempts to reach Gale for comment were unsuccessful.
Although Gale did business as Capital Management Group, the company name is not unique.
Another Denver firm of the same name said Monday it is not affiliated with Gale and is not involved in the litigation.
Howard Pankratz: 303-954-1939, hpankratz@denverpost.com or
