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Scam Alert: CFTC Secures Judgment Against Andrew Middlebrooks and EIA All Weather Alpha Fund Over Multi-Million Dollar Fraud
The CFTC has secured a consent order against Michigan-based operator Andrew Middlebrooks and EIA All Weather Alpha Fund I Partners LLC for running a multi-million dollar fraudulent commodity pool scheme.
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The Commodity Futures Trading Commission (CFTC) has announced that the U.S. District Court for the Eastern District of Michigan entered a consent order against Andrew Middlebrooks and his company, EIA All Weather Alpha Fund I Partners LLC. The defendants were charged with running a fraudulent commodity pool scheme that solicited millions of dollars from investors across the United States and abroad.
From at least mid-2017 through April 2022, Middlebrooks and his firm operated the commodity pool EIA All Weather Alpha Fund I LP. Throughout this period, they systematically deceived both existing and prospective participants by misrepresenting the financial health and performance of the fund.
According to court findings, the defendants falsely claimed the commodity pool was extraordinarily profitable despite sustaining massive trading losses. To sustain the deception, they exaggerated the pool's assets under management and falsely claimed that the financial statements were audited by an independent outside accounting firm. Furthermore, Middlebrooks and his firm generated and distributed falsified monthly account statements and misleading financial reports to pool participants.
Under the entered consent order, the defendants are permanently banned from trading for others, soliciting or accepting investor funds for trading, registering with the CFTC, and committing further violations of the Commodity Exchange Act and related CFTC regulations.
In a parallel criminal case prosecuted by the U.S. Department of Justice, Middlebrooks pleaded guilty to wire fraud. He was sentenced to eight years and four months in prison and ordered to pay $34,346,948 in restitution.
Investors are urged to exercise extreme caution before committing funds to pooled investment programs. Always verify registration status with regulatory authorities, independently confirm third-party audit claims, and treat claims of high, consistent profits with skepticism.