Federal Court Archives - The Industry Spread

Federal Court Permanently Enjoins Defendants and Orders Them to Pay Penalties and Restitution for Bitcoin Solicitation Fraud, Impersonating a CFTC Investigator, and Sending Forged CFTC Documents

July 15, 2019

In an Order and Default Judgment (Order) filed June 28, 2019, Judge Reed C. O’Connor of the U.S. District Court for the Northern District of Texas found that Hunt, doing business as Diamonds Trading Investment House, and Hecroft, doing business as First Options Trading, engaged in a Bitcoin Solicitation Fraud from members of the public to invest in trading products including leveraged or margined foreign currency contracts (forex), binary options, and diamonds.

High Court Delivers Judgment in Broker’s Appeal From the Full Federal Court

May 19, 2019

The appeal concerned how provisions in the Crimes Act 1914 (Cth) that allow courts and tribunals to consider spent convictions for the purposes of making a decision, apply to the Administrative Appeals Tribunal (AAT) when reviewing banning decisions made by ASIC. Spent convictions are generally those where 10 years has passed since a person was convicted, and the person was not imprisoned for more than 30 months in respect to that conviction. 

Federal Court Orders Binary Options Firm and Principal to Pay More Than $22 Million for Fraudulent Scheme

May 7, 2019

The Commodity Futures Trading Commission (CFTC) today announced that Judge Timothy Corrigan of the U.S. District Court for the Middle District of Florida entered a Consent Order for Permanent Injunction, Civil Monetary Penalty, and Other Equitable Relief (Order) against Dr. Michael Shahand Zilmil, Inc. (Zilmil) (collectively, defendants) of Jacksonville, Florida, who engaged in a large-scale internet fraud scheme from at least June 2013 through July 10, 2017 (the Relevant Period) involving off-exchange binary options.

SEC Charges Truckload Freight Company With Accounting Fraud

April 28, 2019

The Securities and Exchange Commission today charged Indianapolis-based Celadon Group Inc. with an accounting fraud that allowed the truckload freight company to avoid disclosing substantial losses and misrepresent its financial condition.

Federal Court Orders Defendants to Pay More Than $2.7 Million in Connection with Commodity Pool Fraud

April 5, 2019

The Commodity Futures Trading Commission (CFTC) announced today that defendants Thomas Lanzana (dba Unique Forex), who formerly resided in Pawleys Island, South Carolina, and his company Blackbox Pulse, LLC of North Bergen, New Jersey, along with Nikolay Masanko and his company, White Cloud Mountain, LLC of St. Augustine, Florida, have been permanently enjoined from engaging in conduct that violates the Commodity Exchange Act (CEA). Additionally, they have been ordered to pay $762,807.24 in restitution, as well as a civil monetary penalty of $1.95 million in connection with a commodity pool fraud investment scheme involving retail off-exchange foreign currency (forex). 

Federal Court Finds Former Precious Metals CEO Robert Escobio in Contempt of Court for Failure to Pay Restitution to Defrauded Customers

April 5, 2019

The U.S. Commodity Futures Trading Commission (CFTC) announced today that on March 18, 2019, District Judge James Lawrence King of the U.S. District Court for the Southern District of Florida entered an order finding Coral Gables, Florida resident Robert Escobio in contempt (“Contempt Order”) for failing to pay more than $1.5 million in previously-ordered restitution to defrauded customers of Mr. Escobio’s now-defunct precious metals firm, Southern Trust Metals, Inc. (“Southern Trust”).