Miami, FL – December 12, 2006 – U.S. District Court Judge Cecilia M. Altonaga entered a judgment against Barcelona-based Harrington Advisory Services, SL, Richmond Royce Advisory Services, SLU, and Stratford Advisory Services, ordering them to pay a combined $9,555,041 in penalties for defrauding customers. The judgment, entered November 30, 2006, stems from a complaint filed by the Commodity Futures Trading Commission (CFTC) in the case of CFTC v. Berkshire International, et. al.
According to court findings, the defendants engaged in a fraudulent enterprise with related entities – International Berkshire Group Holdings, Inc., Berkshire International LLC, International IMS Group Holdings, Inc., IMS Holdings, LLC, and Oakmont International LLC – beginning in July 2003. They misrepresented and omitted key information to prospective and actual customers, and misappropriated their funds. The court determined that the vast majority of customer funds were transferred to offshore accounts and never returned.
The defendants illegally offered foreign currency options not conducted on regulated exchanges, violating CFTC regulations. The court also found that relief defendants FED and Associates, LLC, Briscoe and Associates, Inc., and International Investments Holdings Corp. received funds obtained through the fraudulent scheme without providing legitimate goods or services in return. FED and Associates was ordered to disgorge $155,000, Briscoe and Associates $7,975, and International Investments Holdings Corp. $1.35 million.
Penalties assessed against the defendants include $4 million for Harrington Advisory Services, $4 million for Richmond Royce Advisory Services, and $1.5 million for Stratford Advisory Services. The total disgorgement amount is $9,555,041, to be paid jointly and severally by the three companies. The CFTC’s enforcement team included Timothy J. Mulreany, David Reed, Mary Kaminski, Paul Hayeck, and Joan Manley.
Source: CFTC.gov
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