APOPKA, FL – David Merrick was ordered to pay over $11.4 million in penalties and restitution for defrauding more than 700 customers through a foreign currency trading scheme, the U.S. Commodity Futures Trading Commission (CFTC) announced today. The order, entered by Judge Charlene Edwards Honeywell of the U.S. District Court for the Middle District of Florida on January 22, 2013, stems from a complaint filed in 2009.
Merrick, previously of Apopka, Florida, and his company, Trader’s International Return Network (TIRN), were found to have engaged in solicitation fraud and misappropriation of at least $22.5 million in customer funds. The CFTC alleged the defendants provided false and misleading information to customers regarding their investments, trading risks, and purported profits.
The court had previously issued consent orders of permanent injunction against both Merrick and TIRN in 2010, finding they violated anti-fraud provisions of the Commodity Exchange Act. Monetary sanctions were reserved for a later order.
This civil action complements a related criminal case, United States v. David Merrick, where Merrick was found guilty on January 19, 2012, of conspiracy to commit wire fraud, money laundering, and securities fraud, as well as one count of money laundering. He received a 97-month prison sentence and was also ordered to pay $11,437,573.15 in restitution to the 735 customer-victims.
TIRN, a Panamanian corporation, was also ordered to pay $11,437,573 in restitution. The CFTC acknowledged the assistance of the U.S. Attorney’s Office for the Middle District of Florida, the Federal Bureau of Investigation, and the Securities and Exchange Commission in the investigation. The order was issued on February 4, 2013.
Source: CFTC.gov
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