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Trader Who Issued Death Threats is Sentenced

April 9, 2012
In December 2010, a commodities broker threatened to kill more than 40 then-current or former members of the CFTC, the SEC, FINRA ,and NFA.  He posted the names of the government officials on an online "execution list" - a list that included SEC Chairman Mary Schapiro and CFTC Chairman Gary Gensler.  The list appeared on the website of the management company for a commodities fund that the broker controlled. Sentenced. On Friday, 4/6/12, Vincent McCrudden, was sentenced to 2 years and 4 months in prison for his crime.  McCrudden, 51, who pleaded guilty last year, was sentenced on Friday by U.S. District Judge Denis Hurley in federal court in Central Islip, New York, who said:  "The nature of the crime, it’s just horrendous." At the hearing, McCrudden apologized to his prospective victims.  He also told the judge, "I wrote provocative language on my website that could have been perceived as threatening.  I would never intentionally hurt or cause bodily harm to another human being." After the sentencing, McCrudden’s lawyer, Sarita Kedia, said the judge was fair, although she would have like to have seen her client get to go home sooner rather than later. McCrudden moved from Long Beach, NY, to Singapore in September 2010 because his fiancee had gotten a position there.  He was arrested at Newark Liberty International Airport in New Jersey on returning from the Southeast Asian country. Upon his return to the U.S. in January 2011 from Singapore, where he lived with his fiancee, McCrudden was arrested and since that time has been held without bail.  He was charged with threatening the officials in profanity-filled emails and, after the CFTC sued him the month before his arrest.  On the day his trial was to begin in July 2011, McCrudden admitted to threatening the lives of 47 then-current and former officials. McCrudden pleaded guilty to 2 counts of transmission of threats to injure.  Those charges carry a maximum sentence of 10 years in prison.  The government asked for 37 months. McCrudden said he should get the 15 months he already served.  He has spent 14 of those months in a Queens, NY, detention center where he was locked down 23 hours a day, he said. Further Details of McCrudden's Actions. Along with posting the names of some 47 regulators whom he said should be executed, McCrudden urged visitors to his website to take up arms against them and said he would "lead by example."  "Go buy a gun, and let’s get to work in taking back our country from these criminals," he wrote on the site, according to prosecutors. McCrudden also wrote in a 9/30/10 e-mail to Daniel Driscoll, the COO of the NFA (National Futures Association), that he had hired people to kill him.  "It wasn’t ever a question of ‘if’ I was going to kill you, it was just a question of when,” McCrudden wrote.  He sent the e-mail from Singapore over Gensler’s name. McCrudden said he was being persecuted for fighting back against unfair regulatory actions that destroyed his career.  In addition to trading commodities, he ran his own hedge funds.  Prosecutors charged that, after the CFTC accused him in the lawsuit of operating unregistered commodity pools, he posted the "execution" list on his company website. Regulatory Entanglements. McCrudden’s legal and regulatory entanglements began in 2000, when he was criminally charged with masking shortfalls in statements to his hedge-fund investors.  The government said he included in his results money he expected to get from a lawsuit after Sumitomo Corp. (8053) was accused of manipulating the copper market.  In 2003, a federal jury in Central Islip acquitted McCrudden of 15 counts of mail fraud. The National Futures Association in 2005 denied his registration application because of the alleged overstatements.  After that decision, which the CFTC and a federal appeals court upheld, he agreed to get anger-management therapy to avoid prosecution for sending an NFA lawyer a threatening e-mail. In October 2009, FINRA ruled that McCrudden induced Hedge Fund Capital Partners LLC, a New York broker-dealer where he had worked, to file a form saying he left voluntarily when he really had been fired, something McCrudden denied.  FINRA's National Adjudicatory Council, which hears appeals of FINRA decisions, upheld that finding. The criminal case is: U.S. v. McCrudden, 11-cr-61; and the civil case is U.S. Commodity Futures Trading Commission v. McCrudden, 10-cv-5567, U.S. District Court, Eastern District of New York (Central Islip). [Bloomberg, 4/6/12]