CFTC slap $32 million in fines on 'FX swindlers'

In mid-April, the US Commodity Futures Trading Commission (CFTC) granted a permanent injunction against Ronald Steven Holt and three associated companies for financial misdemeanours, while fining them a total of $32 million.

The businesses – the International Funding Association and Global Management Group, from Arizona, and Cambridge Global Group – were fined $32 million.

The fines amount to the settling of a debt that was raised when Holt was initially found guilty of defrauding customers in 2003.

Gregory Mocek, director of the CFTC's division of enforcement, said the case demonstrates the high priority placed on pursuing "foreign currency swindlers" and freezing their assets to give back to retail victims. However, he said customers also need to be aware of the dangers: "Customers should not enter into investments with blindfolds on and expect that everyone in the market-place is legitimate," he said.

The CFTC charged that since 1997, Holt and his businesses fraudulently solicited around $25 million from roughly 2,500 clients for trading futures contracts, including foreign currencies. These included using false claims that he achieved investment returns of 7–10% per month.

The order also found that the defendants traded illegal futures contracts and misappropriated at least $14 million of the clients' $25 million.

The commission said the defendants used the funds to purchase residential property and various items. They were held to be jointly and severally liable to pay a judgment totalling nearly $32 million. This comprises over $14 million for repayment to defrauded customers, around $1.5 million in interest and approximately $16 million in monetary penalties. OR&C

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Modernising compliance functions with regtech

Regtech addresses the complexities of regulatory requirements, offering innovative tools to modernise compliance functions, streamline processes and enhance efficiency. This article explores its role in compliance and reporting within the banking sector,…

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here