Federal Court Sanctions Company for Precious Metals Scheme

The United States District Court for the Southern District of Florida issued a Consent Order against an asset management company and its owner.

According to the Order, the company's owner directed employees to solicit retail customers by telephone in order to engage in leveraged, margined or financed precious metal transactions. During that period, the company's customers paid approximately $1.1 million to the company in connection with precious metal transactions, and the company received commissions and fees totaling no less than $278,767 in connection with the precious metal transactions. The Order stated that metals were never actually delivered in connection with the transactions made on behalf of the company's customers. Additionally, the Order stated that the company executed the illegal precious metal transactions through three different companies, all of which were charged with various violations.

The Order requires the company and its owner jointly to pay a $100,000 civil monetary penalty and restitution of $278,767. The Order also imposes permanent trading and registration bans on the defendants and prohibits them from further violations of the Commodity Exchange Act.