On Mar. 4, CFTC fined metals dealer $8mn for fraud investors.
- Purported metals dealer Carlos Javier Ramirez, and companies Royal Leisure
International and Gold Chasers solicited customers to purchase physical gold.
Charges
- Ramirez, GCI and RLI obtained nearly $3mn in connection with the schemes.
- As in a Ponzi scheme, defendants paid false profits to some of the customers.
- Defendants misappropriated more than 90 percent of their customers’ funds.
- As controlling person of GCI and RLI Ramirez is thus liable for their violations.
Settlement
- Pay restitution and civil monetary penalty, for fraudulently soliciting customers.
- Ramirez and RLI to repay customers $1.9mn and pay a civil penalty of $5.9mn.
- With GCI, repay to customers $761k and to a civil monetary penalty of $2.2mn.
- Ban and permanent injunction prohibiting future violations of laws, regulations.
