The U.S. Commodity Futures Trading Commission (CFTC) has ordered Boca Raton, Florida resident Isaiah Goldman and Delray Beach, Florida resident Brock Catronio, along with their companies Paramount Metals Exchange, LLC and Paramount Credit, LLC (collectively Paramount), to pay more than $2.5 million in sanctions for illegal off-exchange precious metals fraud.
The CFTC Order states that Isaiah Goldman (Goldman), Brock Catronio (Catronio) and Paramount solicited investors to make cash purchases of precious metals, falsely representing how the physical metals would be held on the investors’ behalf. According to the Order, Goldman, Catronio and Paramount treated the metals transactions as financed purchases, with the investor only paying a portion of the purchase price, and then taking out a loan for the balance of the purchase price.
According to the CFTC Order, Paramount’s investor customers lost more than $1.5 million of their funds to trading losses, commissions, and other fees. Mr. Goldman, Mr. Catronio and Paramount, on the other hand, allegedly received $853,279 of those commissions and fees. Consequently, the CFTC has settled charges and jointly ordered Goldman, Catronio and Paramount to pay restitution of more than 1.5 million and a civil monetary penalty of $1 million.
Attorney Robert W. Pearce has successfully defended clients involved in CFTC investigations and enforcement proceedings for more than 30 years. In fact, he is currently involved in a number of CFTC investigations in which he is defending clients who are involved in leveraged precious metals businesses. Recently, Mr. Pearce obtained a full dismissal of all claims against his client in a leveraged precious metals arbitration proceeding.
Have you have been contacted by the CFTC? Do you believe 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 has the knowledge and experience to defend 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 40 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.