New York, NY – The Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Chelsea Gless, of Iowa, and her company, Royal Metals Group, LLC (RMG), alleging a fraudulent scheme involving precious metals transactions. The case, filed in the U.S. District Court for the Southern District of New York, accuses Gless and RMG of defrauding retail clients out of over $600,000.
According to the CFTC’s complaint, from March 2016 through the present, Gless and RMG allegedly misrepresented to clients that they would deliver precious metals in exchange for funds. However, the CFTC claims that only a small quantity of coins was actually delivered, with the bulk of the funds misappropriated.
The complaint further alleges that Gless and RMG also fraudulently obtained precious metals – including gold and silver – from clients, promising full payment which was never rendered. Instead, the metals were allegedly retained without compensation to the clients.
The CFTC alleges the defendants used the misappropriated funds and metals for personal expenses, including airline fees, purchases at Walmart, and transfers to accounts controlled by Gless and associated third parties. To conceal the scheme, false delivery tracking numbers were provided, and clients received unsigned or uncashable checks due to stop payment orders or insufficient funds.
The CFTC is seeking disgorgement of ill-gotten gains, civil monetary penalties, restitution for the defrauded clients, permanent registration and trading bans, and a permanent injunction to prevent further violations of the Commodity Exchange Act. The investigation was led by Janine Gargiulo, Alben Weinstein, Judith Slowly, Steven Ringer, Lenel Hickson, and Manal Sultan of the CFTC’s Division of Enforcement.
“As this case shows, the CFTC is actively policing precious metals transactions and will vigorously enforce the anti-fraud provisions of the Commodity Exchange Act,” stated James McDonald, Director of Enforcement. “The CFTC will continue to fight to protect customers and to hold wrongdoers accountable.”
The CFTC advises potential investors to be wary of precious metals scams and encourages reporting of suspicious activity via its toll-free hotline at 866-FON-CFTC (866-366-2382) or through its online filing system.
Source: CFTC.gov
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