Fort Lauderdale attorney Jay Bruce Grossman was ordered to pay $883,000 in penalties and restitution for his role in aiding and abetting fraudulent precious metals schemes, the Commodity Futures Trading Commission (CFTC) announced Wednesday, July 22, 2015.
Judge Beth Bloom of the U.S. District Court for the Southern District of Florida entered a Consent Order against Grossman, requiring a $150,000 civil monetary penalty and $733,000 in restitution to victims of the schemes. The order permanently prohibits Grossman from violating the Commodity Exchange Act (CEA) in the future and bars him from practicing before the CFTC until reinstated by the commission.
According to the CFTC’s complaint, filed September 9, 2014, Grossman, acting as legal counsel, knowingly assisted multiple clients in operating unlawful precious metals schemes. He allegedly created the appearance of legitimacy for these schemes, despite knowing they violated commodity trading laws.
The CFTC has previously secured judgments against Grossman’s clients involved in the fraudulent activity. However, the agency cautions that victims may not fully recover their losses, as wrongdoers may lack sufficient assets to cover restitution.
Stephanie Reinhart, Jennifer E. Smiley, Susan Gradman, Scott Williamson, and Rosemary Hollinger of the CFTC’s Division of Enforcement led the investigation. The CFTC encourages anyone with information about potential commodity trading violations to contact them via their toll-free hotline at 866-FON-CFTC or submit a tip online.
The CFTC also provides resources to help customers identify and avoid precious metals fraud, including a dedicated customer fraud advisory.
Source: CFTC.gov
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