Fraudsters running an international racket across the US and Brazil were charged by a Federal Court in New York which imposed a $2.16 million penalty and issued a permanent trading ban against Michael Kardonick, Gary Shapoff, and Atwood & James for forex options fraud and misappropriation.
A long-standing case dating back six years has finally been granted justice by the US legal system. With an initial complaint filed in 2009 against the two fraudsters and their companies, Atwood & James Ltd. and Atwood & James SA, the courts handed out penalties and charges against the four in question.
The CFTC’s complaint had charged the defendants with fraudulently soliciting retail clients to trade FX options and charged Atwood and Kardonick with misappropriating client funds.
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The fraud took place between 2001 and 2008, and targeted individuals from across the world including North America and Europe. The individuals had set up a company online and used it to solicit clients.
The CFTC’s investigations found that the defendants who claimed to be professional traders had little or no experience of financial markets trading. In fact, only personal trading accounts were found for Kardonick which traded over a five year period. He sustained severe losses of $1.7 million trading in financial derivatives.
Both Kardonick and Shapoff have been known to the legal circle for their previous convictions of tax evasion and money laundering.