Judge Freezes Assets of Commodity Firm

A federal judge in Los Angeles on Wednesday froze the assets of Carl J. Hermans of North Hollywood, a man the Commodity Futures Trading Commission says had a part in a scheme to defraud 40 investors of more than $3 million.

U.S. District Judge Harry L. Hupp ordered the freeze on Hermans’ assets and those of his company, California Traders Group, after the CFTC filed a five-count complaint alleging Hermans agreed to “launder” the assets of a commodity pool operated by Edward W. Schroeder of Santa Monica and Andre D. Fite of Los Angeles. Hermans also collected more than $100,000 from investors while operating as an unregistered commodity pool operator, the CFTC said.

A commodity pool operator organizes pooled funds from investors to be used in trading commodity futures contracts. Investors benefit from the collective profits.

Hermans couldn’t immediately be reached for comment.

In separate proceedings, Fite has denied fraud allegations and said he thought the commodity pool was a legitimate investment. Schroeder couldn’t be reached.