Commodity Brokers Online - Custom Search
|
Enter Search Keyword(s):
Custom Search for 1,000 + Commodity Webpages. All Sites have been Reviewed and Categorized by
CommodityFuturesSearch.com
|
Commodity Trading Resources
|
|
ATLANTIC MERCANTILE GROUP, INC
CASE OUTCOME: Permanent Injunction
NFA ID:
0219013
Individuals Involved:
- SCOTT JEFFREY LEVINE
- JEFF SCOTT RICHMAN
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that the U.S. District Court for the Southern District of Florida entered an order of permanent injunction against Atlantic Mercantile Group, Inc., an introducing broker in Fort Lauderdale, Florida, and its principals, Scott Jeffrey Levine (of Plantation, Florida) and Jeff Scott Richman (of Coral Springs, Florida), as a result of an injunctive complaint filed by the CFTC on February 27, 1991, alleging violations of the anti-fraud and supervision provisions of the Commodity Exchange Act and CFTC regulations. Without admitting or denying the allegations of the civil complaint, Atlantic Mercantile, Levine, and Richmond consented to the entry of the court order on August 6, 1992, which permanently prohibits the defendants from fraudulently soliciting and trading commodity futures and option contracts and from failing to supervise diligently the handling of customer accounts. The CFTC's three-count injunctive complaint alleged that the defendants committed fraud by making false, deceptive, and misleading statements of material facts or omitting material facts in connection with the solicitation and trading of customer commodity accounts. The alleged fraudulent misrepresentations concerned the likelihood of profits and the risk of loss in trading commodity futures and option contracts; the experience, research, and trading performance of Atlantic Mercantile and its salespeople; and the trading practices of the firm and its salespeople. The CFTC's action also charged the defendants with fraud by unauthorized trading in customers' commodity futures and option accounts and failure to supervise diligently the handling of customers' accounts. The complaint alleged that, during the period from February 1989 through November 1990, Atlantic Mercantile employed about 30 salespeople, and had total customer investments of about $10 million, which generated almost $3 million in commissions. During the period, the complaint alleged, at least 92 percent of Atlantic Mercantile's customers lost all or a substantial part of their investment to trading losses and commissions. In addition to its civil complaint, the CFTC also filed, and simultaneously settled, an administrative complaint against Atlantic Mercantile, Levine, and Richman, charging the same fraudulent conduct as alleged in the CFTC's injunctive complaint. In settling the CFTC's administrative complaint, the respondents, without admitting or denying the allegations, consented to the entry of a CFTC order finding that each violated the Act and CFTC regulations as charged. The settlement order also revokes the registration of Atlantic Mercantile as an introducing broker and the registrations of Levine and Richman as associated persons and prohibits them from ever seeking registration with the CFTC in any capacity. Finally, the order directs Levine and Richman each to pay a civil monetary penalty of $25,000.
Visit:
|