A Colorado federal court has ordered Gregory L. Gramalegui of Vail, Colorado, who operated Emini Trading School, to pay over $1.9 million in penalties and disgorgement for fraudulent solicitation, false statements, and violating a prior CFTC order. The Commodity Futures Trading Commission (CFTC) brought the federal enforcement action.
According to court documents, Gramalegui engaged in a years-long scheme to market and sell a futures trading system and advisory service that did not perform as promised. He also failed to provide required disclosures to clients. Judge Robert E. Blackburn found Gramalegui’s actions constituted fraud following a two-day bench trial.
This isn’t Gramalegui’s first run-in with the CFTC. The court found his current unlawful activity violated a 2001 CFTC order stemming from deceptive marketing of a previous trading system and advisory service. Furthermore, the Court made the first litigated decision under a specific provision of the Commodity Exchange Act (CEA), finding Gramalegui repeatedly made false statements to the CFTC during their investigation.
The CFTC initially filed its complaint on October 19, 2015. The court ordered Gramalegui to pay a $1,442,070.51 civil monetary penalty and disgorge $480,690.17 in ill-gotten gains. He is also permanently banned from trading and registration, and enjoined from further violations of the CEA and CFTC Regulations.
“The CFTC’s case and this court’s decision make clear that recidivists will be caught and punished and that lying to the CFTC is a grave offense meriting a serious penalty,” stated James McDonald, CFTC Director of Enforcement. The CFTC cautions that victims may not recover all lost funds, as wrongdoers often lack sufficient assets.
The case was led by CFTC staff members Laura Brookover, Ilana Waxman, Raagnee Beri, Daniel Jordan, Michelle Bougas, Erica Bodin, Jeremy Christianson, Michael Loconte, and Rick Glaser.
Source: CFTC.gov
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