CFTC Wins Court Consent Order Against Wisconsin Resident for Fraudulent Commodity Scheme

A U.S. District Court in the Eastern District of Wisconsin has entered a consent order requiring Robert Narvett, a Wisconsin resident, to pay more than $185,000 in restitution to victims of a fraudulent commodity trading scheme. The order also permanently bans him from trading or registering with the Commodity Futures Trading Commission (CFTC) and prohibits him from further violations of the Commodity Exchange Act.

The CFTC's enforcement action, originally filed in March 2021, charged Narvett with fraud, misappropriation, and engaging in prohibited activities as a commodity trading advisor. According to court findings, from December 2013 through March 2021, Narvett persuaded clients to allow him to manage their commodity futures trading accounts. He then misappropriated their funds, abandoned accounts after losses, and made false claims about his trading successes and methods.

In addition, Narvett failed to disclose that he was not registered as a commodity trading advisor, and that he had a prior federal judgment from a Securities and Exchange Commission case involving a separate investment fraud.

Separately, in a criminal case, the U.S. Attorney's Office for the Eastern District of Wisconsin charged Narvett with wire fraud, bank fraud, money laundering, and aggravated identity theft. In May 2022, he pleaded guilty to wire fraud and money laundering, receiving a 15-year prison sentence and ordered to pay $1.68 million in restitution.

The CFTC noted that the consent order resolves civil claims but also reinforces long-term prohibitions, reflecting a broader regulatory focus on ensuring that individuals involved in prior financial misconduct are prevented from repeating such activity. The case highlights continuing challenges for regulators in monitoring commodity trading advisors and protecting retail investors from deceptive schemes.