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Futures trader must pay $4.5M in fines, restitution

A former Big Island futures trader has been ordered to return $2.9 million to customers and pay $1.6 million in civil penalties as part of a settlement with an agency that brought charges against him last year over allegations of commodity pool fraud.

Barry Schotz of Kilauea was found by the U.S. Commodity Futures Trading Commission to have fraudulently operated a commodity pool called the Bear Invest Fund from about August 2003 to October 2004, according to the CFTC.

The agency said Schotz consented to the order without admitting or denying the allegations. He could not be reached for comment.

The release stated that Schotz took $5 million, mostly from people who lived in and around Los Angeles, and invested the money in a fund. While Schotz told pool participants his futures trading was highly profitable, he consistently lost money and failed to provide disclosure documents, a CFTC complaint said. He also misappropriated $1.7 million in customer funds, which he used for personal expenses, the CFTC said.

In a separate but related case, Schotz recently pleaded guilty in a U.S. District Court in Illinois to charges of wire fraud.

Schotz, who was previously convicted of fraud in 1994 and served five years in federal prison, has been released on bond while he awaits sentencing.

Dream of owning a home dying

WASHINGTON >> Housing prices are far outstripping salary increases for low- and moderate-income jobs, putting the American dream of owning a home beyond the reach of teachers, firefighters and other community workers in many cities, said a study being released today.

The report, by a coalition advocating affordable housing, found that even cities once considered affordable, such as Tulsa, Okla., are rapidly becoming too pricey for lower-income workers such as janitors and retail sales employees.

The study found the median price of a home in the United States rose 20 percent in just 18 months, to $225,000. During the same period, wages for teachers, firefighters and nurses in most cities remained flat or increased slightly, but still fell far short of the annual salary needed to buy a home, the report from the Center for Housing Policy said.

Ruth's Chris increases offering

Underwriters for Ruth's Chris Steak House Inc. increased the size of the company's pending initial public offering yesterday to 13 million shares from 11.43 million shares, according to an amended filing with the Securities and Exchange Commission.

The Metairie, La.-based restaurant company still plans to sell the shares at $15 to $17 each. Ruth's Chris is expected to price its IPO this week.