{"id":116,"date":"2013-01-09T16:16:02","date_gmt":"2013-01-09T21:16:02","guid":{"rendered":"http:\/\/www.accreditedinvestorleads.com\/?p=116"},"modified":"2020-01-22T12:06:58","modified_gmt":"2020-01-22T16:06:58","slug":"cftc-charges-hunter-wise","status":"publish","type":"post","link":"https:\/\/www.accreditedinvestorleads.com\/cftc-charges-hunter-wise\/","title":{"rendered":"Multi-Million Dollar Fraudulent Precious Metals Scheme"},"content":{"rendered":"

CFTC alleges that defendants conducted illegal, off-exchange commodity transactions, and deceived customers in connection with financed transactions in precious metals<\/h3>\n

Washington, DC<\/b> – The U.S. Commodity Futures Trading Commission (CFTC) today announced that on December 5, 2012, it filed a civil injunction enforcement action in the U.S. District Court for the Southern District of Florida against\u00a0Hunter Wise Commodities, LLC<\/b>;\u00a0Hunter Wise Services, LLC<\/b>;\u00a0Hunter Wise Credit, LLC<\/b>;\u00a0Hunter Wise Trading, LLC<\/b>;\u00a0Lloyds Commodities, LLC<\/b>;\u00a0Lloyds Commodities Credit Company, LLC<\/b>;\u00a0Lloyds Services, LLC<\/b>;\u00a0C.D. Hopkins Financial, LLC<\/b>;\u00a0Hard Asset Lending Group, LLC<\/b>;Blackstone Metals Group, LLC<\/b>;\u00a0Newbridge Alliance, Inc.<\/b>;\u00a0United States Capital Trust, LLC<\/b>;\u00a0Harold Edward Martin, Jr.<\/b>;\u00a0Fred Jager<\/b>;\u00a0James Burbage<\/b>;\u00a0Frank Gaudino<\/b>;\u00a0Baris Keser<\/b>;\u00a0Chadewick Hopkins<\/b>;John King<\/b>; and\u00a0David A. Moore<\/b>. The complaint charges these entities and individuals with fraudulently marketing illegal, off-exchange retail commodity contracts and deceived customers in connection with financed transactions in precious metals<\/p>\n

. The complaint alleges that Hunter Wise Commodities, the orchestrator of the fraud, has taken in at least $46 million in customer funds since July 2011.<\/p>\n

According to the CFTC complaint, the defendants claim to sell physical metals, including gold, silver, platinum, palladium, and copper, to retail customers in retail commodity transactions. Under the defendants\u2019 retail commodity transactions investment contract, customers allegedly make a down payment on certain quantities of physical metals, usually 25 percent of the total purchase price. Defendants allegedly claim to arrange loans for the balance of the purchase price, and advise customers that their physical metals will be stored in a secure depository.<\/p>\n

The complaint further alleges that these statements were false, and that the defendants do not purchase any physical metals, arrange loans for their customers to purchase physical metals, or arrange for storage of physical metals for any customers participating in their retail commodity transactions. Instead, all the transactions are just paper transactions, according to the complaint. Defendants allegedly do not own or sell metals to customers; customers are charged storage and insurance fees on metals that do not exist; and are charged interest on loans, which are never made by the defendants.<\/p>\n

\"Precious<\/a><\/p>\n

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) of 2010 expanded the CFTC\u2019s jurisdiction over transactions like these, and requires that such transactions be executed on or subject to the rules of a board of trade, exchange or commodity market, according to the complaint. This new requirement took effect on July 16, 2011. The complaint alleges that all of the defendants\u2019 financed commodity transactions after July 16, 2011, were illegal. The complaint also alleges that the defendants defrauded customers in all of these financed commodity transactions.<\/p>\n

David Meister, the CFTC\u2019s Director of Enforcement stated: \u201cHere is a prime example of how the Dodd-Frank Act provided the Commission with additional strong authority to go after wrong-doers, such as, as alleged in the complaint, individuals who prey on people looking to make retail investments in commodities like gold and silver. We will use this new authority to the fullest extent possible.\u201d<\/p>\n

In January 2012 the CFTC issued a Consumer Fraud Advisory (see Advisory under Related Links) regarding precious metals fraud, saying that it had seen an increase in the number of companies offering customers the opportunity to buy or invest in precious metals. The CFTC\u2019s Consumer Fraud Advisory specifically warned that frequently companies do not purchase any physical metals for the customer, instead simply keeping the customer\u2019s funds. The Consumer Fraud Advisory further cautioned consumers that leveraged commodity transactions are unlawful unless executed on a regulated exchange.<\/p>\n

In its continuing litigation against the defendants, the CFTC is seeking preliminary and permanent civil injunctions in addition to other remedial relief, including restitution to customers.<\/p>\n

The CFTC thanks the Florida Office of Financial Regulation, the Florida Department of Agriculture and Consumer Services, and the United Kingdom Financial Services Authority for their assistance.<\/p>\n

The CFTC Division of Enforcement staff responsible for this action are Carlin Metzger, Joseph Konizeski, Heather Johnson, Stephanie Reinhart, Jennifer Smiley, Judith McCorkle, Jeff LeRiche, Peter Riggs, Jennifer Chapin, Steven Turley, Brigitte Weyls, Joseph Patrick, Susan Gradman, Theodore Glotfelty, William Janulis, Scott Williamson, Rosemary Hollinger, and Richard Wagner.<\/p>\n

Media Contacts<\/b>
\nDennis Holden
\n202-418-5088<\/p>\n

Last Updated: December 5, 2012<\/p>\n

Source:\u00a0https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/pr6447-12<\/a><\/p>\n

For more information please visit our mother site at<\/b> Salesleads.tv<\/b><\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"

CFTC alleges that defendants conducted illegal, off-exchange commodity transactions, and deceived customers in connection with financed transactions in precious metals Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that on December 5, 2012, it filed a civil injunction enforcement action in the U.S. District Court for the Southern District of Florida<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[63],"tags":[],"yoast_head":"\nMulti Million Dollar Precious Metals Scheme| AccreditedInvestorLeads.com<\/title>\n<meta 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