CFTC Sues MOMC Operator Over Alleged Metals Fraud Scheme

The US Commodity Futures Trading Commission (CFTC CFTC The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss The 1974 Commodity Exchange Act (CEA) in the United States created the Commodity Futures Trading Commission (CFTC). The Commission protects and regulates market activities against manipulation, fraud, and abuse trade practices and promotes fairness in futures contracts. The CEA also included the Sad-Johnson Agreement, which defined the authority and responsibilities for the monitoring of financial contracts between the Commodity Futures Trading Commission and the Securities and Exchange Commiss Read this Term) today charged a ‎Florida-based commodity pool operator and his firm in a case involving the ‎operation of a fraudulent precious metals scheme, according to a CFTC ‎statement.‎

Betty Lea Grimes and his company Mark Olsen Mining Company (MOMC) were ‎accused of taking money from customers who thought they were getting gold, ‎silver, and other precious metals in return. ‎Customers were lulled into the false belief that precious metals ‎had been purchased and were stored in MOMC’s vault, but $870,000 million worth of their billions vanished over two years.

The complaint also charges MOMC with making several misleading ‎representations actual and prospective investors. As also alleged, ‎the defendant assured the victims that they were pooling ‎their funds ‎for the purported purpose of investing in precious metals, while he was running a Ponzi scheme. ‎

Grimes has used several names including Betty Grimes, Lea Grimes, Lea Lauren, Betty Nehme, and Lea Nehme, according to the complaint that accuses the ‎defendants of fraud, misappropriation, registration ‎violations, and issuing false statements.‎

The US derivatives regulator alleged in its complaint the money sent to MOMC was not used to ‎purchase or trade precious metals on its clients’ behalf. Prosecutors said that instead ‎of buying the precious metals ordered by his customers, Grimes ‎spent the money on company expenses, investment activities ‎and for his own personal use and benefit. ‎

As a result of the actions and misappropriation, the ‎commission seeks full restitution to ‎defrauded ‎participants, disgorgement of any ill-gotten gains, a civil ‎monetary ‎penalty, permanent registration and trading ‎bans, and a permanent injunction ‎against violations of ‎federal commodities laws, as charged.‎