Fort Lauderdale, Florida – Attorney Jay Bruce Grossman is facing charges of fraud following a civil enforcement complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on September 9, 2014, in the U.S. District Court for the Southern District of Florida. The CFTC alleges that Grossman willfully aided and abetted multiple clients in operating fraudulent precious metals schemes beginning July 16, 2011.
According to the complaint, Grossman’s clients, including Hunter Wise Commodities, LLC, falsely claimed to sell financed physical metals – gold, silver, platinum, palladium, and copper – to retail customers. The Commodity Exchange Act (CEA) requires such transactions to be executed on a registered board of trade, a requirement his clients ignored. The CFTC asserts that these companies never possessed or sold any physical metals, nor did they disburse loans to customers.
The complaint details that Grossman was aware of Hunter Wise’s deceptive practices, specifically that the company did not sell, store, or fund loans related to the metals. Despite this knowledge, Grossman allegedly assisted in creating the illusion of legitimacy, drafting fraudulent customer forms and making misrepresentations to courts and the CFTC. These actions, the CFTC argues, facilitated the defrauding of thousands of retail customers out of millions of dollars.
“This action shows that the Commission will not hesitate to bring cases against gatekeepers, including attorneys, who are complicit in violating the CEA,” stated Aitan Goelman, Director of the Division of Enforcement. “Lawyers and accountants have the professional responsibility to avoid participating in unlawful conduct that is perpetrated by their clients.”
The CFTC is seeking a permanent injunction against Grossman to prevent future violations of the CEA, along with permanent registration and trading bans, and a civil monetary penalty. The agency previously obtained judgments against several of Grossman’s clients for similar violations.
Customers who suspect precious metals fraud are encouraged to report it to the CFTC via the toll-free hotline at 866-FON-CFTC or submit a tip online. Stephanie Reinhart, Jennifer E. Smiley, Scott Williamson, and Rosemary Hollinger of the CFTC Division of Enforcement are handling the case.
Source: CFTC.gov
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