West Palm Beach, FL – Andrew Kurzbard and his company, Guardian Asset Group, LLC, have been slapped with hefty penalties and lifetime bans for running an illegal precious metals scheme, the Commodity Futures Trading Commission (CFTC) announced. Judge Kenneth A. Marra of the U.S. District Court for the Southern District of Florida issued a Consent Order finding Kurzbard, of Hacksneck, Virginia, and Guardian engaged in unlawful, off-exchange precious metals transactions with retail customers.
The Order mandates that Kurzbard and Guardian, jointly, pay $434,413.54 in restitution to defrauded customers and a $651,620.31 civil penalty. Both are permanently prohibited from trading commodities and registering with the CFTC, effectively ending their involvement in the market. The case originated from a CFTC enforcement action filed in September 2015.
According to court findings, between February 2012 and February 2013, Guardian, under Kurzbard’s direction, aggressively solicited customers via telephone, pushing leveraged, margined, or financed precious metals transactions. Customers invested at least $1.7 million, with Guardian pocketing over $434,413.54 in commissions and fees. The CFTC determined Guardian acted as an unregistered Futures Commission Merchant by accepting orders and funds.
The transactions violated the Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibits such off-exchange leveraged deals unless actual delivery of the metal occurs within 28 days. The court found Guardian never delivered the metals, meaning customers were not receiving the assets they paid for.
Guardian reportedly executed the illegal transactions through AmeriFirst Management, LLC, which was previously targeted by the CFTC in July 2013 for similar violations. A Consent Order was entered against AmeriFirst in 2013 and 2014, finding them liable for fraud and illegal transactions.
The CFTC warns that restitution orders don’t guarantee full recovery of lost funds, as defendants may lack sufficient assets. The agency pledged continued vigilance in protecting customers and holding wrongdoers accountable. James Humphrey, Elsie Robinson, Stephen Turley, Thomas Simek, Peter Riggs, and Charles Marvine of the CFTC’s Division of Enforcement led the investigation.
Source: CFTC.gov
Related Federal Cases
- Jessieca Omowele, Stolen Identity Tax Fraud, Florida 2024 · Florida
- Jenny Hernandez, Visa Fraud Scheme, Florida 2024 · Virginia
- Joff Stenn Wroy Philossaint, Covid Relief Fraud, Florida 2024 · Alabama
- Paul Thompson, VA Disability Fraud, Florida 2024 · Virginia
- Jose Manuel Santiago, Home Sale Fraud, Florida 2024 · Florida
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News