New York, NY – Chelsea Gless and her company, Royal Metals Group, LLC (RMG), have been slapped with a default judgment and permanent injunction following a Commodity Futures Trading Commission (CFTC) investigation into a precious metals fraud scheme. The U.S. District Court for the Southern District of New York issued the order on January 25, 2019, stemming from a complaint filed by the CFTC on September 14, 2018.
Gless, a resident of Iowa and manager/part owner of RMG, along with the company, are jointly responsible for paying $584,549.84 in restitution to defrauded customers. Additionally, the court ordered a civil monetary penalty of $1,753,647. The Order permanently bans both defendants from trading regulated commodities and registering with the CFTC, and prohibits any further violations of the Commodity Exchange Act.
The CFTC found that between March 2016 and the present, Gless and RMG defrauded at least eight clients out of over $617,000 in connection with precious metals transactions, resulting in losses of $584,549.84 for the victims.
The scheme involved both failing to deliver promised precious metals after receiving funds, and failing to fully pay clients for precious metals they delivered to RMG. In the former case, clients suffered losses exceeding $402,000. In the latter, losses topped $181,000. The defendants allegedly misappropriated client funds, using them for personal expenses, including airline fees, Walmart purchases, and transfers to accounts controlled by Gless and other third parties.
To conceal the fraud, the defendants provided clients with invalid delivery tracking numbers, unsigned checks, and checks that were ultimately rejected due to stop payment orders or insufficient funds, according to the court order.
“As this case shows, the CFTC will work tirelessly to detect and vigorously prosecute commodity fraud,” stated James McDonald, Director of Enforcement. The CFTC reminds potential victims that court orders for restitution do not guarantee full recovery of lost funds.
Source: CFTC.gov
Related Federal Cases
- Attyx, Zelle Fraud, New York NY, 2023 · Washington
- Early Warning Services, LLC, Zelle Fraud, New York NY, 2023 · Washington
- Federal Defendant Found Guilty of Bank Fraud, New York NY, 1983 · Washington
- Preet Bharara, Mail Theft and Bank Fraud, New York 2023 · New Mexico
- Tommy Lin, Bank Fraud Scheme, New York 2024 · New Mexico
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News