The U.S. District Court for the Southern District of Florida has ordered Delray Beach Florida resident Stavros Papastavrou and his Pompano Beach, Florida company, Inter-Global Currency & Precious Metals, LLC (IGCPM), to pay nearly $550,000 for allegedly committing illegal off-exchange precious metals fraud.
The Consent Order states that IGCPM and Mr. Papastavrou solicited customers by phone to engage in leveraged, margined, or financed precious metals transactions. According to the Order, customers paid at least $1 million to IGCPM for these precious metals transactions, and IGCPM received at least $447,342 in commissions and fees.
Leveraged, margined, or financed transactions are illegal off-exchange transactions unless they result in delivery of the metal within 28 days. According to the Order, the metals were never delivered on behalf of IGCPM’s customers. Further, the Order states that IGCPM executed the illegal transactions through Lloyds Commodities, LLC, Hunter Wise, LLC and AmeriFirst Management LLC, all of whom are part of enforcement actions brought by the U.S. Commodity Futures Trading Commission (CFTC) for allegedly engaging in illegal, off-exchange precious metals transactions.
The Order assesses a civil monetary penalty of $100,000, a restitution award of $447,342, and permanently bans Inter-Global Currency & Precious Metals and Stavros Papastavrou from trading, soliciting, and engaging in any other CFTC-regulated activities.
For over 30 years, Attorney Pearce has successfully defended clients involved in CFTC investigations and enforcement proceedings. In fact, he is currently involved in a number of CFTC investigations and defending clients who are involved in leveraged precious metals businesses. Mr. Pearce recently obtained a full dismissal of all claims made against his client in a leveraged precious metals arbitration proceeding.
Have you have been contacted by the CFTC or believe that you may be the subject of a CFTC investigation? If so, call Robert W. Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce defends various entities and individuals who may be the subject of a CFTC investigation or enforcement action regarding their alleged involvement in commodities laws violations.
For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to representing investors and financial industry professionals throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at email@example.com for answers to any of your questions about this blog post and/or any related matter.