Coconut Creek, Florida – On January 4, 2006, the U.S. Commodity Futures Trading Commission (CFTC) filed a complaint in the U.S. District Court for the Southern District of Florida against Doreen Valko and International Investments Holdings Corp. (IIHC), alleging a $1.13 million fraud impacting approximately 205 retail customers.
The complaint accuses IIHC, purportedly a Bahamian corporation but operating from South Florida, and Valko, its president, of misappropriating customer funds intended for foreign currency options trading. The CFTC alleges that Valko and IIHC concealed the misappropriation by generating false statements for customer accounts, fabricating records of transactions that never occurred.
Frank DeSantis of Stuart, Florida, is also named as a defendant, charged with knowingly assisting and enabling the fraudulent scheme. DeSantis allegedly provided consulting and marketing services to both Valko and IIHC, aiding in the operation of the illegal enterprise.
Judge Dimitrouleas issued an order on January 4, 2006, freezing the assets of the defendants, preventing the destruction of financial records, and demanding the return of any offshore assets. The order was recently unsealed, bringing the details of the case to light.
Fourteen additional entities were named as relief defendants – Jason Todd Dean, Tara Lyn Dean, Erin DeSantis a.k.a. Erin Rose Valko, Joseph Valko, Jeffrey P. Jedlicki, Tirtza Jedlicki, Thomas W. Yoos, Jr., Certified Financial Services, Inc., John Taddeo Enterprises, Inc., ERV & Associates, Inc., Joe Valko Enterprises, Inc., Boot Camp Diet & Fitness, Inc., American Lighthouse Trading, Inc., and Jason’s Roofing and Waterproofing, Inc. – accused only of receiving funds obtained through the illegal scheme, not of participating in the fraud itself.
The CFTC is pursuing preliminary and permanent injunctions against all defendants, seeking restitution for defrauded customers, the recovery of illegally obtained gains, and monetary penalties for violations of the Commodity Exchange Act. The Broward County Sheriff’s Office and the Florida Office of Statewide Prosecution assisted in the investigation.
As of April 8, 2007, the litigation remains ongoing.
Source: CFTC.gov
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