Michael Shannon Sims, known in multilevel marketing circles as Mike Sims, has consented to a preliminary injunction. This action is part of a significant commodities fraud case brought by the Commodity Futures Trading Commission. The CFTC accused Sims and four others of running interconnected Ponzi schemes under the Yas Castellum name, allegedly defrauding consumers of at least $145 million.

The Commodity Futures Trading Commission filed charges in January 2023 against Sims, his brother-in-law Todd Brisco, Tin Tran, Francisco Story, and Frederick Safranko. Court filings detail Sims' central role in managing the money laundering activities. He instructed Brisco to transfer the majority of investor money into the Tran Pools, with lesser amounts sent to other destinations. Brisco allegedly disguised these transfers as payments for services to conceal the fraudulent nature of the transactions.

Federal authorities moved swiftly to curb the alleged fraud. On February 6, the CFTC obtained a Statutory Restraining Order that froze all assets associated with Yas Castellum and its operators. The court found a substantial risk that evidence would be moved or destroyed by the defendants. This order also granted the CFTC broad access to the defendants' financial records, establishing probable violations of the Commodity Exchange Act.

Sims chose not to contest the CFTC’s claims. On March 30, he agreed to convert the restraining order into a permanent preliminary injunction. This agreement places stringent restrictions on his future financial activities.

Under the terms of the injunction, Sims is permanently barred from further violations of the Commodity Exchange Act. He cannot engage in trading on any registered exchange or participate in any commodity transactions, whether directly or indirectly. The injunction prohibits him from soliciting funds from investors for commodity purchases or sales. Furthermore, he is barred from seeking registration or exemptions from the CFTC and from accessing safe deposit boxes.

Sims must also comply with extensive evidence preservation requirements. He is obligated to keep all documents, electronic communications, recordings, and computer materials in his possession. He must provide passwords for any encrypted devices or data. The CFTC will receive a complete inventory of all electronic devices owned by Sims for forensic examination.

Financially, Sims faces detailed disclosure mandates. He must present comprehensive records of all funds, securities, assets, futures, forex, gold, and cryptocurrency holdings, both domestic and international. The CFTC will receive full disclosure of every trading transaction conducted. The consent order also requires Sims to provide contact information for all individuals involved in the schemes.

This consent order represents a significant development in the government's efforts to hold those responsible for the Yas Castellum fraud accountable. For the victims who lost money in the alleged $145 million scheme, Sims' agreement to these terms suggests the CFTC has built a strong case against him. The commission’s next challenge will be to pursue the recovery of the stolen funds.