Hunter Wise Commodities, LLC was a privately held
Spring Valley,
Nevada-based wholesale
precious metal
Precious metals are rare, naturally occurring metallic chemical elements of high economic value.
Chemically, the precious metals tend to be less reactive than most elements (see noble metal). They are usually ductile and have a high lustre. ...
s trader and
financier offering
back office accounting services to its clients. The company also had offices in
Irvine, California.
Formed in 2007, its wholly owned subsidiaries included Hunter Wise Credit, LLC, Hunter Wise Trading, LLC and Hunter Wise Services, LLC.
Fred Jager was the
chief executive officer and Harold Edward Martin was president and
chief operating officer.
Litigation
Hunter Wise Commodities in September 2012 filed for a
declaratory judgment in the
U.S. District Court
The United States district courts are the trial courts of the U.S. federal judiciary. There is one district court for each federal judicial district, which each cover one U.S. state or, in some cases, a portion of a state. Each district cou ...
for the
Northern District of Illinois for a finding that it was compliant with the
Commodity Exchange Act
Commodity Exchange Act (ch. 545, , enacted June 15, 1936) is a federal act enacted in 1936 by the U.S. Government, with some of its provisions amending the Grain Futures Act of 1922.
The Act provides federal regulation of all commodities and futu ...
(CEA), including amendments by the
Dodd–Frank Wall Street Reform and Consumer Protection Act in 2011.
In December 2012, the
Commodity Futures Trading Commission
The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974 that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options.
The Commodity Exchange Ac ...
filed a complaint in the
U.S. District Court for the Southern District of Florida alleging that Hunter Wise was engaging in unlawful activities.
In a December press release, Hunter Wise Commodities categorically denied the CFTC's allegations and contended that the CFTC overreached its
jurisdiction and mischaracterized the nature of the transactions.
On February 25, 2013, the U.S. District Court for the Southern District of Florida froze all the assets of Hunter Wise Commodities. "The Court has set the trial of the CFTC's claims against the Defendants for a two-week period commencing on February 24, 2014."
On May 22, 2014, the Southern District Court in Florida found that Hunter Wise Commodities, three related companies, Fred Jager, and Harold Edward Martin Jr. were found to have "defrauded thousands of retail customers" and were ordered to pay $52.6 million in restitution and $55.4 million in civil penalties.
References
{{reflist
American companies established in 2007
Companies based in Spring Valley, Nevada