Michael A. Meisner
|Michael A. Meisner|
|Location||Boca Raton, Florida|
Michael A. Meisner is a trader who ran the company Phoenix Diversified Investment Corp. The company was pushed into bankruptcy by three investors shortly before Meisner and Phoenix were accused by the U.S. Commodity Futures Trading Commission (CFTC) of commodity pool fraud in 2008. Meisner personally filed for Chapter 11 bankruptcy reorganization.
Meisner was registered with the CFTC as an associated person of Diamond Head Capital, LLC, a registered commodity trading advisor, from March 2005 until April 21, 2008, when his registration was withdrawn by his sponsor. Meisner was the branch office manager of Diamond Head until April 2008.
Around 140 investors claimed they were owed more than $40 million by Phoenix. A group of angry investors forced Phoenix into Chapter 7 bankruptcy after Meisner wrote in an e-mail that $30 million in investment funds was gone,with a number of them also filing lawsuits against Meisner.
The frustration of the investors who had given money to Phoenix grew when Meisner reportedly threw a lavish wedding for his daughter and her husband at Donald Trump's private club in Palm Beach, Florida. Reports were that the Meisners even invited dozens of the money-losing investors to the wedding.
The 2008 CFTC complaint stated that Meisner and Phoenix fraudulently solicited at least 26 investors for at least $8 million. The accounts associated with the commodity pool allegedly suffered net losses between May 2003 and March of 2008 this year.
According to the CFTC’s complaint, Meisner solicited pool participants by claiming that Phoenix owned a valuable software program that dictated trading patterns in the futures markets and guaranteed high profits.
According to the CFTC complaint, the defendants in the case misappropriated pool participant funds by, among other things, paying themselves compensation based on the purported profits of the pool. The defendants were able to issue monthly interest checks to some pool participants during the relevant time because the defendants were repaying "earlier" pool participants with "new" pool participant funds, in a Ponzi-like manner. The defendants spent the misappropriated funds on purchases of expensive personal items such as real estate and luxury automobiles.
- CFTC Complaint Against Michael A. Meisner
- Petrillo et al v. Phoenix Diversified Investment Corp. et al
- Firm's Investors Try To Track Cash After Bankruptcy. Palm Beach Post.
- CFTC Complaint Agains Michael A. Meisner. U.S. Commodity Futures Trading Commission.
- Four Lawsuits Allege Fraud By Boca Raton Investment Manager. Topix.
- Lavish Wedding Takes Cake After Millions Lost. Palm Beach Post.
- CFTC Sues Commodity Pool Manager Over Alleged Fraud. Alternative Asset Adviser.
- CFTC Detects Another Case Of Commodity Pool Fraud. Commodity Online.