LAS VEGAS, NV – David Gilbert Saffron and his company, Circle Society, Corp., have been slapped with a hefty default judgment following a Commodity Futures Trading Commission (CFTC) enforcement action, according to court documents filed in the U.S. District Court for the District of Nevada. The judgment, entered on March 29, 2021, stems from a cryptocurrency fraud and misappropriation scheme that bilked investors out of millions.
Saffron, an Australian citizen residing in Nevada and California, and Circle Society, a Nevada corporation, were found to have fraudulently solicited over $15.8 million in Bitcoin and U.S. dollars from at least 179 individuals between December 2017 and the present. The pair promised guaranteed returns of up to 300% by trading off-exchange binary options on foreign currencies and cryptocurrency, but instead operated a Ponzi scheme, using new investor funds to pay earlier investors.
The court ordered Saffron and Circle Society to jointly pay $14,841,280 in restitution to defrauded investors, $15,815,967 in disgorgement, and a civil penalty of $1,484,128. The judgment permanently bans them from engaging in any activity related to CFTC-regulated markets, including registration and trading on their behalf or for others.
The CFTC initially filed charges in September 2019, alleging fraudulent solicitation, misappropriation of funds, and registration violations. The court noted the defendants’ lack of defense and repeated failure to comply with court orders as justification for the default judgment. Prior to the final judgment, the court had already granted the CFTC’s motion for sanctions, awarding attorneys’ fees and expenses.
The CFTC warns that restitution orders do not guarantee recovery of lost funds, as the defendants may lack sufficient assets. The agency expressed gratitude for the assistance provided by the U.S. Attorney’s Office for the District of Nevada and the North Carolina Secretary of State’s Securities Division.
Danielle Karst and Timothy are listed as the CFTC’s enforcement staff members responsible for the case.
Source: CFTC.gov
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