CFTC Cracks Down on Precious Metals Racket Worth $2.7m
- Jeffrey Slemmer, Christian Dorrian, and Adam Roth have been charged with rare diamonds fraud worth $2.7m.
The US Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action in the US District Court of Florida against three residents charged with fraud and an illegal off-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term precious metals racket, according to a CFTC filing.
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
In particular, Jeffrey Slemmer, Christian Dorrian, and Adam Roth, with their respective Florida string of companies, Slemmer Enterprises LLC, Dorrian Enterprises, LLC, and Roth Investment Group LLC, have been charged with fraud. The charges range from fraudulent activity, illegal, off-exchange transactions in precious metals, and engaging in trading activities as unregistered futures commission merchants (FCMs).
The scheme itself was conducted under the moniker Berkley Hard Asset Group, Berkley Hard Assets, and Berkley Rare Diamonds, which had been going on since at least 2012. During this period the aforementioned individuals managed to fraudulently solicit over $2.7 million from at least 60 customers for the purchase of precious metals.
Furthermore, the scheme also seeded false promises that precious metals would be purchased and stored at a ‘depository’ on the customers’ behalf, which did not in fact occur. Rather, the individuals misappropriated customer funds for other purposes.
The scheme itself employed the use of a technique known as “bait-and-switch”, which works by soliciting customers to purchase precious metals, then urging them to sell their purported precious metal holdings and purchase diamonds instead. Subsequently, customers are left holding diamonds worth far less than what the defendants represent and only a small fraction of the customer’s original investment. As a result, the CFTC is seeking disgorgement of ill-gotten gains, as well as a civil monetary penalties, and restitution for the benefit of customers.
The US Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action in the US District Court of Florida against three residents charged with fraud and an illegal off-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term precious metals racket, according to a CFTC filing.
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
In particular, Jeffrey Slemmer, Christian Dorrian, and Adam Roth, with their respective Florida string of companies, Slemmer Enterprises LLC, Dorrian Enterprises, LLC, and Roth Investment Group LLC, have been charged with fraud. The charges range from fraudulent activity, illegal, off-exchange transactions in precious metals, and engaging in trading activities as unregistered futures commission merchants (FCMs).
The scheme itself was conducted under the moniker Berkley Hard Asset Group, Berkley Hard Assets, and Berkley Rare Diamonds, which had been going on since at least 2012. During this period the aforementioned individuals managed to fraudulently solicit over $2.7 million from at least 60 customers for the purchase of precious metals.
Furthermore, the scheme also seeded false promises that precious metals would be purchased and stored at a ‘depository’ on the customers’ behalf, which did not in fact occur. Rather, the individuals misappropriated customer funds for other purposes.
The scheme itself employed the use of a technique known as “bait-and-switch”, which works by soliciting customers to purchase precious metals, then urging them to sell their purported precious metal holdings and purchase diamonds instead. Subsequently, customers are left holding diamonds worth far less than what the defendants represent and only a small fraction of the customer’s original investment. As a result, the CFTC is seeking disgorgement of ill-gotten gains, as well as a civil monetary penalties, and restitution for the benefit of customers.