Carlos Javier Ramirez, Gold Counterfeiting, Florida 2019

A Florida federal court has ordered CarlosJavier Ramirez and his companies, Royal Leisure International, Inc. (RLI) and Gold Chasers, Inc. (GCI), to pay over $8.9 million in restitution and penalties for defrauding customers who invested in physical gold. The judgment, issued February 5th and announced by the Commodity Futures Trading Commission (CFTC) on March 4, 2019, also includes trading and solicitation bans for Ramirez, RLI, and GCI.

Judge Roy B. Dalton, Jr. found that Ramirez, RLI, and GCI misappropriated customer funds and engaged in fraudulent sales solicitations. The scheme involved obtaining nearly $3 million from investors under the pretense of purchasing gold. However, the court determined that over 90 percent of the funds were misappropriated, with some payments to earlier investors resembling a Ponzi scheme.

Ramirez and RLI are required to pay $1,980,858 in restitution and a civil penalty of $5,942,574. Ramirez and GCI must pay $761,831 in restitution and $2,285,493 as a civil penalty. The order permanently prohibits the defendants from future violations of federal commodities laws and regulations.

The CFTC originally filed a complaint on February 13, 2017, in the U.S. District Court for the Middle District of Florida. The agency cautions that restitution orders do not guarantee full recovery of lost funds, as defendants may lack sufficient assets. The CFTC stated it will continue to pursue legal action against those who violate commodities laws.

The Internal Revenue Service, Criminal Investigation, provided assistance in the investigation. The CFTC’s enforcement team included Glenn Chernigoff, Michael Loconte, Michael Solinsky, and Rick Glaser.

Customers who believe they may have been victims of precious metals fraud are encouraged to report suspicious activity to the CFTC via its toll-free hotline at 866-FON-CFTC (866-366-2382) or through its online tip and complaint system.

Source: CFTC.gov

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