CFTC v. King, No. 3:06-CV-1583-M, 2007 WL 1321762, at *2 (N.D.Tex. May 7, 2007) (“[Defendant’s] violation of section 4b(a)(2)(i), (iii) of the CEA is further proven by his admitted misappropriation of customer funds for personal and professional use.”); CFTC v. Weinberg, 287 F.Supp.2d 1100, 1106 (C.D.Cal.2003) (misappropriating investors’ funds violated Section 4b(a)(2)(i) and (iii) of the Act); CFTC ex rel Kelley v. McLaunn, [1994-1996 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 26,768 at 44, 180, 1996 WL 385334 (N.D.Ill.1996) (by depositing customer funds in accounts in which the customers had no ownership interest and making unauthorized disbursements for his own use, defendant violated Section 4b of the Act); see also CFTC v. Skorupskas, 605 F.Supp. 923, 932 (E.D.Mich.1985) (<HOLDING>). b. Fraud by Issuing False Written Statements
holding that defendant violated section 4b when she misappropriated pool participant funds by soliciting funds for trading and then trading only a small percentage of those funds while disbursing the rest of the funds to investors herself and her family holding that an order to disgorge funds was final even though the order did not distribute the funds holding student activity fees not to be state funds when they were segregated from university funds and the state treasury holding that a college received federal funds where the funds were granted to its students as financial aid rather than directly to the college because the language of the section does not distinguish between direct and indirect receipt of federal funds holding that companys president was trustee of trust funds because he had control and direction over the funds