BROOKLYN, NY – Abraham Gutterman of Brooklyn, New York, has been slapped with a default judgment and permanent injunction following a fraudulent commodity options scheme, the Commodity Futures Trading Commission (CFTC) announced today, June 26, 2012. The judgment, issued by Judge Marcia G. Cook of the U.S. District Court for the Southern District of Florida, also covers Gutterman’s companies, Alliance Capital Metals LLC (ACM) and AR Goldman Wealth Management, LLC (ARGWM), both based in South Florida.
The CFTC initially filed a complaint against Gutterman and his firms on March 15, 2012, alleging a scheme to defraud investors through the sale of gold and oil commodity options. The court found that, beginning in November 2009, Gutterman and his companies fraudulently solicited at least $483,725 from 15 or more customers with promises of high returns.
Instead of investing the funds as promised, the order states Gutterman misappropriated the money for personal expenses, including dining, gambling, entertainment, and retail purchases. Investigators detailed the use of aggressive sales tactics, with Gutterman and his staff repeatedly contacting potential investors and falsely promising significant profits – even claiming investors could “make a killing.”
The court also found that Gutterman falsely told customers that ACM was registered with the CFTC, a claim that proved untrue. Investors received no documentation confirming their investments and were later told their funds had been lost in commodity option trades. Gutterman then allegedly pressured them to invest additional funds to recoup their losses, but no money was ever returned.
As a result of the judgment, Gutterman and his companies are jointly and severally liable for $483,725 in restitution to defrauded customers and a $2.1 million civil monetary penalty. They are also permanently banned from trading commodities and registering with the CFTC, and are prohibited from violating the Commodity Exchange Act and CFTC regulations.
The case was led by CFTC Division of Enforcement staff members Robert Howell, Joseph Patrick, Susan Gradman, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
Source: CFTC.gov
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