CFTC Sues MOMC Operator Over Alleged Metals Fraud Scheme

The complaint also charges MOMC with making several misleading ‎representations to actual and prospective investors.

The US Commodity Futures Trading Commission (CFTC) today charged a ‎Florida-based commodity pool operator and his firm in a case involving the ‎operation of a fraudulent precious metals scheme, according to a CFTC ‎statement.‎

Betty Lea Grimes and his company Mark Olsen Mining Company (MOMC) were ‎accused of taking money from customers who thought they were getting gold, ‎silver, and other precious metals in return. ‎Customers were lulled into the false belief that precious metals ‎had been purchased and were stored in MOMC’s vault, but $870,000 million worth of their billions vanished over two years.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

The complaint also charges MOMC with making several misleading ‎representations actual and prospective investors. As also alleged, ‎the defendant assured the victims that they were pooling ‎their funds ‎for the purported purpose of investing in precious metals, while he was running a Ponzi scheme. ‎

Suggested articles

$100,000 Battle: PrimeXBT Debuts New Contests ModuleGo to article >>

Grimes has used several names including Betty Grimes, Lea Grimes, Lea Lauren, Betty Nehme, and Lea Nehme, according to the complaint that accuses the ‎defendants of fraud, misappropriation, registration ‎violations, and issuing false statements.‎

The US derivatives regulator alleged in its complaint the money sent to MOMC was not used to ‎purchase or trade precious metals on its clients’ behalf. Prosecutors said that instead ‎of buying the precious metals ordered by his customers, Grimes ‎spent the money on company expenses, investment activities ‎and for his own personal use and benefit. ‎

As a result of the actions and misappropriation, the ‎commission seeks full restitution to ‎defrauded ‎participants, disgorgement of any ill-gotten gains, a civil ‎monetary ‎penalty, permanent registration and trading ‎bans, and a permanent injunction ‎against violations of ‎federal commodities laws, as charged.‎

Got a news tip? Let Us Know