FAYETTEVILLE, GA – Michael E. Simmons, of Fayetteville, Georgia, has been ordered to pay $589,660 in penalties and restitution for defrauding investors through a foreign currency (forex) trading scheme, the U.S. Commodity Futures Trading Commission (CFTC) announced on September 28, 2015.
Simmons, the sole owner, president, and CEO of Global Consortiums, LLC, was found to have fraudulently solicited at least $435,985 from ten or more individuals between March 2010 and July 2012. The funds were intended for investment in a commodity pool trading forex, but the CFTC determined that Simmons never actually traded the investors’ money.
Instead, Simmons and Global Consortiums fabricated account statements claiming profitable forex trades. At least $217,160 of investor funds were misappropriated for personal use, according to the CFTC’s order. While some funds were partially repaid, Simmons still owes investors $229,660 in restitution.
The CFTC order mandates that Simmons and Global Consortiums jointly pay a $360,000 civil monetary penalty in addition to the $229,660 in restitution. They are also permanently banned from registering with the CFTC, trading, and engaging in any other CFTC-regulated activities. Neither Simmons nor Global Consortiums were registered with the CFTC at the time of the offenses.
The CFTC cautions that victims may not fully recover their losses, as the perpetrators may lack sufficient assets. The agency encourages anyone with information about potential commodity trading law violations to contact the CFTC via its toll-free hotline at 866-FON-CFTC or submit a tip online.
This case was led by CFTC Division of Enforcement staff members Karin N. Roth, Christopher Giglio, Douglas K. Yatter, Lenel Hickson, Jr., and Manal M. Sultan.
Source: CFTC.gov
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