NEW YORK, NY – December 19, 2006 – Ian Bursztyn and several others have been slapped with over $25 million in penalties and permanent trading bans following a CFTC investigation dubbed “Operation Wooden Nickel.” The U.S. Commodity Futures Trading Commission announced today that the U.S. District Court for the Southern District of New York entered orders against 15 defendants involved in a fraudulent scheme selling illegal foreign currency (forex) futures contracts.
Bursztyn, of Commack, NY, was found to have participated in a scheme to defraud and misappropriate funds from retail investors trading off-exchange foreign currency contracts. He was ordered to pay $12,059,480 in restitution and a $240,000 civil monetary penalty. Additionally, Bursztyn faces a permanent ban from trading and registering with the CFTC. The court also found Bursztyn repeatedly filed false financial reports with the National Futures Association regarding customer funds, resulting in an additional $120,000 penalty.
Also penalized were Mazen Abdeldayem of Brooklyn, NY, ordered to pay $30,427 in restitution and a $120,000 penalty, and Damon Ripley of Brooklyn, NY, and New York Capital Assets, Inc., who were jointly and severally ordered to pay $226,522 in restitution, and each a $240,000 civil monetary penalty. Matthew Salinas of Brooklyn, NY, entered a consent order and will pay a $42,000 penalty and disgorge $14,000 in ill-gotten gains.
The investigation, conducted in cooperation with the FBI, Department of Justice, and Securities and Exchange Commission, revealed a widespread scheme to defraud investors. Michael Korobov of New York, NY, was also implicated, accused of misappropriating funds received for trading illegal forex contracts. Korobov and The Fuzzy Group entered consent orders with the CFTC. Several relief defendants, including Michael Edwards Trading Group, Ltd., JSG Freight Systems, Inc., and others, were ordered to disgorge illegally obtained funds.
The CFTC originally filed civil injunctive actions against these defendants on November 18, 2003. The court’s orders now enforce significant financial penalties and permanently bar the defendants from engaging in futures trading, aiming to protect the public from future fraudulent activity.
Source: CFTC.gov
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