CFTC Settles Charges against Firm for Illegal Off-Exchange Precious Metals Trading
The U.S. District Court for the District of Nevada entered an Order of Default Judgment ("Order") against a firm and its owner for engaging in illegal off-exchange precious metals transactions.
In April 2015, the CFTC issued a complaint alleging that the firm engaged in illegal off-exchange transactions in precious metals with retail customers on a leveraged, margined or financed basis.
In the Order, the CFTC reported finding that precious metals were never delivered to any customers with respect to the financed metals transactions. Under Dodd-Frank, leveraged, margined or financed transactions are illegal off-exchange transactions unless they result in the actual delivery of metals within 28 days.
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CFTC Press Release 6172-12