BOCA RATON, FL – Betty Lea Grimes and her precious metals firm, Mark Olsen Mining Company (MOMC), have been slapped with a hefty penalty and permanent trading ban following a default judgment entered by a federal court in Florida, the Commodity Futures Trading Commission (CFTC) announced Monday. Grimes, who operated under multiple aliases including Betty Nehme and Lea Lauren, and MOMC were ordered to pay $2,723,460 in civil penalties and $907,820 in disgorgement to defrauded customers.
The CFTC initially filed charges against Grimes and MOMC on June 12, 2018, alleging they fraudulently solicited retail investors for off-exchange precious metals transactions and then misappropriated all the funds. The court found the defendants made false claims about their experience, track record, and how investor money would be used.
According to the judgment, Grimes and MOMC successfully collected over $2.7 million from investors with the promise of purchasing precious metals. However, investigators found that not a single dollar of the collected funds was actually used for that purpose. Instead, the defendants pocketed the money, with Grimes transferring a significant portion to bank accounts in South Africa and using the remainder to cover personal living expenses.
The CFTC emphasized that victims of this fraud may not recover their losses, as the defendants may lack sufficient assets to repay the funds. The agency stated it will continue to pursue accountability for those who harm customers in the commodities markets.
The investigation received assistance from the Financial Sector Conduct Authority (FSCA) of South Africa, formerly known as the Financial Services Board (FSB). The CFTC’s enforcement team included Maura Viehmeyer, Erica Bodin, Aimée Latimer-Zayets, and Rick Glaser.
Source: CFTC.gov
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