A U.S. court order imposes disgorgement and civil monetary penalties in connection with an alleged U.S. Ponzi scheme.
A Canadian man must pay more than US$2.2 million in connection with an alleged off-exchange forex Ponzi scheme, according to the U.S. Commodity Futures Trading Commission.
A U.S. court order - issued in late February - imposed disgorgement penalties of $1,146,399, and requires Patrick Cole and his company Global Strategic Marketing (GSM) to pay civil monetary penalties of $1,146,399. Cole and GSM are also banned from trading and registration.
According to the order, Cole and GSM allegedly marketed fraudulent forex investment programs offered through another company, Complete Developments LLC (CDL), while making false claims about low risk loss, guaranteeing high return of principal and high rates of return on investment.
GSM is also accused of providing misleading and false information about CDL and GSM, while ignoring investor complaints. The court alleges Cole “had actual knowledge of all of GSM’s activities at all levels with respect to CDL, and was the decision-maker regarding GSM’s activities upon which the primary violation of the Act is based.”
In May 2013, CDL's executives Kevin Harris, Keelan Harris, and Karen Starr, and defendant Investment International were ordered by the court to pay more than $23 million in civil monetary penalties and restitution in connection with the alleged Ponzi scheme.
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