CFTC Fines Commodity Trader $3 Million for Operating Illegal Metals Scheme
- The order requires Joseph and his firm Oakmont to pay a $2,205,987 fine and disgorge $735,329 in ill-gotten gains.
A Florida federal judge banned a metals trader and his defunct firm from commodities trading and fined them
[gptAdvertisement]$3 million for allegedly conducting 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 transactions with retail customers on borrowed money, the U.S. Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) said Wednesday.
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The default judgement order, issued today by Judge William P. Dimitrouleas of the U.S. District Court for the Southern District of Florida, follows a CFTC complaint filed in February 2016 against Joseph Charles DiCrisci and his firm Oakmont Financial Inc. alleging numerous violations.
The order requires Joseph and the firm to pay a $2,205,987 civil monetary penalty and disgorge $735,329 in ill-gotten gains. Additionally, it imposes permanent trading and registration bans against DiCrisci and Oakmont.
Judge Dimitrouleas’s order also prohibits DiCrisci and Oakmont from violating the Commodity Exchange Act and CFTC regulations as charged in the February’s complaint. His order follows a CFTC investigation on the matter filed on January 12, 2016, which noted that DiCrisci and Oakmont repeatedly engaged in illegal, off-exchange precious metals transactions on a leveraged, margined or financed basis.
The complaint claims that from July 2011 and continuing through to at least July 2012, DiCrisci and Oakmont, by and through its employees, illegally solicited retail customers by telephone to buy physical precious metals on a leveraged, margined or financed basis. But the commodities watchdog alleged that Oakmont’s customers never took delivery of the metals.
The same complaint found that DiCrisci and Oakmont acted as an FCM without being so registered.
The CFTC noted that, under the Dodd-Frank law, off-exchange leveraged, margined or financed transactions are illegal unless they result in actual delivery of metal within 28 days. However, the regulator found that precious metals were never delivered to the customers by DiCrisci and Oakmont.
A Florida federal judge banned a metals trader and his defunct firm from commodities trading and fined them
[gptAdvertisement]$3 million for allegedly conducting 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 transactions with retail customers on borrowed money, the U.S. Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) said Wednesday.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
The default judgement order, issued today by Judge William P. Dimitrouleas of the U.S. District Court for the Southern District of Florida, follows a CFTC complaint filed in February 2016 against Joseph Charles DiCrisci and his firm Oakmont Financial Inc. alleging numerous violations.
The order requires Joseph and the firm to pay a $2,205,987 civil monetary penalty and disgorge $735,329 in ill-gotten gains. Additionally, it imposes permanent trading and registration bans against DiCrisci and Oakmont.
Judge Dimitrouleas’s order also prohibits DiCrisci and Oakmont from violating the Commodity Exchange Act and CFTC regulations as charged in the February’s complaint. His order follows a CFTC investigation on the matter filed on January 12, 2016, which noted that DiCrisci and Oakmont repeatedly engaged in illegal, off-exchange precious metals transactions on a leveraged, margined or financed basis.
The complaint claims that from July 2011 and continuing through to at least July 2012, DiCrisci and Oakmont, by and through its employees, illegally solicited retail customers by telephone to buy physical precious metals on a leveraged, margined or financed basis. But the commodities watchdog alleged that Oakmont’s customers never took delivery of the metals.
The same complaint found that DiCrisci and Oakmont acted as an FCM without being so registered.
The CFTC noted that, under the Dodd-Frank law, off-exchange leveraged, margined or financed transactions are illegal unless they result in actual delivery of metal within 28 days. However, the regulator found that precious metals were never delivered to the customers by DiCrisci and Oakmont.