Showing posts with label SILVER BULLION. Show all posts
Showing posts with label SILVER BULLION. Show all posts

Thursday, March 7, 2013

MAN SENTENCED TO PRISON AND WILL PAY $34.5 MILLION FOR ROLE IN SILVER BULLION PONZI SCHEME




FROM: COMMODITY FUTURES TRADING COMMISSION

CFTC Settles Charges against Ronnie Gene Wilson of South Carolina and His Company, Atlantic Bullion and Coin, for Operating a Multi-Million Dollar Silver Bullion Ponzi Scheme
Federal court in South Carolina orders Wilson to pay over $34.5 million dollars in restitution and a civil monetary penalty
In a parallel criminal action, Wilson pleaded guilty to mail fraud and was sentenced to 235 months in prison

Washington, DC
– The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge J. Michelle Childs of the U.S. District Court for the District of South Carolina issued an Order requiring Defendant Ronnie Gene Wilson to pay a $23 million civil monetary penalty and $11,530,000 of restitution to defrauded investors in connection with a multi-million dollar silver bullion Ponzi scheme. The Consent Order of Permanent Injunction also imposes permanent trading and registration bans against Wilson and his company, Atlantic Bullion & Coin, Inc. (Atlantic Bullion), both of Easley, S.C., and prohibits them from violating the Commodity Exchange Act and CFTC Regulations, as charged.

The Order stems from a CFTC Complaint filed on June 6, 2012, charging violations under the CFTC’s new authority contained within the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) prohibiting the use of any manipulative device, scheme, or artifice to defraud in connection with a contract of sale of a commodity in interstate commerce. Wilson and Atlantic Bullion were charged with fraudulently selling contracts of sale of silver to investors in a nationwide scheme that spanned 11 years.

In the Consent Order, the court concludes that the Defendants fraudulently obtained at least $11.53 million from at least 237 investors for the purchase of contracts of sale of silver bullion between August 15, 2011, and February 29, 2012 (the relevant period), which corresponds to the time period during which the CFTC possessed jurisdiction over the Defendants’ actions pursuant to new provisions contained within the Dodd-Frank Act. The Order further finds that, during the relevant period, the Defendants failed to purchase any silver whatsoever. Instead, the Order concludes that the Defendants misappropriated the entirety of the investors’ funds and issued false account statements to investors in an attempt to conceal their fraud.

In a related criminal proceeding in November 2012, Wilson was sentenced to serve the maximum 235 months imprisonment under the applicable federal sentencing guidelines and ordered to pay $57,401,009 in restitution to his victims for his involvement in the Ponzi scheme (US v. Wilson, 8:12-00320, D. SC).

The CFTC appreciates the cooperation and assistance in this matter from the U.S. Attorney’s Office for the District of South Carolina (including Assistant U.S. Attorney George J. Conits and Assistant United States Attorney William J. Watkins, Jr.), the South Carolina Attorney General’s Office, and the U.S. Secret Service.

The CFTC Division of Enforcement staff responsible for this case are A. Daniel Ullman II, George H. Malas, Antoinette Chance, John Einstman, Richard Foelber, Paul G. Hayeck, and Joan M. Manley.

Friday, June 8, 2012

CFTC ALLEGES MAN AND CO. RAN A $90 MILLION SILVER BULLION PONZI SCHEME


FROM:  COMMODITY FUTURES TRADING COMMISSION
CFTC Charges Ronnie Gene Wilson of South Carolina and His Company, Atlantic Bullion & Coin, Inc., with Operating a $90 Million Silver Bullion Ponzi Scheme

Defendants are allegedly to have fraudulently sold contracts of sale of silver in a nationwide scheme
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a federal civil enforcement action charging defendants Ronnie Gene Wilson (Wilson) and Atlantic Bullion & Coin, Inc. (AB&C), both of Easley, S.C., with fraud in connection with operating a $90 million Ponzi scheme, in violation of the Commodity Exchange Act (CEA) and CFTC regulations.

The CFTC’s complaint charges violations under the agency’s new Dodd-Frank authority prohibiting the use of any manipulative or deceptive device, scheme, or contrivance to defraud in connection with a contract of sale of any commodity in interstate commerce in violation of Section 6(c)(1) of the CEA, as amended, to be codified at 7 U.S.C. §§ 9, 15 and the CFTC’s implementing Regulation 180.1 (a). The complaint was filed on June 6, 2012, in the U.S. District Court for the Southern District of South Carolina, Anderson Division.

According to the complaint, since at least 2001 through February 29, 2012, Wilson and AB&C operated a Ponzi scheme, and, as part of the scheme, fraudulently offered contracts of sale of silver, a commodity in interstate commerce. Through their 11-year long scheme, the defendants allegedly fraudulently obtained at least $90.1 million from at least 945 investors for the purchase of silver.

From August 15, 2011, through February 29, 2012 – the time period during which the CFTC has had jurisdiction over the defendants’ actions under new provisions contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 – the defendants allegedly fraudulently obtained at least $11.53 million from at least 237 investors in 16 states for the purchase of contracts of sale of silver. The complaint further alleges that during this period, the defendants failed to purchase any silver whatsoever. Instead, the defendants allegedly misappropriated all of the investors’ funds and to conceal their fraud, issued phony account statements to investors.

In its continuing litigation, the CFTC seeks restitution to defrauded investors, a return of ill-gotten gains, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of the federal commodities laws.

The CFTC appreciates the cooperation and assistance of the U.S. Attorney’s Office in Greenville, S.C., and the U.S. Secret Service.

CFTC Division of Enforcement staff responsible for this case are A. Daniel Ullman II, George H. Malas, Antoinette Chance, John Einstman, Richard Foelber, Paul G. Hayeck, and Joan M. Manley.

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