LOS ANGELES, CA – November 17, 2017 – Commodity fraudster Gerard Suite, along with his company STA Opus NR LLC, and accomplice Frank Collins, have been hit with significant penalties following a federal court order, the Commodity Futures Trading Commission (CFTC) announced today.
The CFTC secured a Default Judgment Order against Suite (also known as Rawle Gerard Suite, Jerry Suite, and Jerry Snead) and STA Opus, and a Consent Order against Collins for defrauding investors in a commodity pool. The orders, issued by the U.S. District Court for the Central District of California, demand a total of $1,127,855 in restitution to defrauded participants and $3,383,565 in civil monetary penalties.
The court found that from January 2013 through May 6, 2016, Suite and STA Opus falsely advertised positive returns on their commodity pool, despite the accounts having lost nearly all committed funds. They also failed to disclose a prior disciplinary history involving $2.5 million in restitution and fines related to operating as an unregistered investment advisor in California. Suite and STA Opus are accused of misappropriating $1,127,855 from pool participants and issuing falsified account statements to cover up the theft.
Frank Collins, who assisted Suite in launching STA Opus in late 2012, was found to have misappropriated at least $50,000 of the $1.6 million invested by approximately 30 individuals. He is required to pay $50,000 in restitution and a $50,000 civil monetary penalty.
In addition to the financial penalties, the court permanently banned Suite and Collins from violating anti-fraud provisions of the Commodity Exchange Act and CFTC Regulations. They are also barred from future trading, solicitation, and registration activities.
The CFTC cautions that recovery of funds for victims is not guaranteed, as the defendants may lack sufficient assets. The agency stated its commitment to vigorously pursue the protection of customers and hold wrongdoers accountable. The Federal Bureau of Investigation (Orange County, California) and the U.S. Attorney’s Office for the Central District of California assisted in the investigation.
Source: CFTC.gov
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