Fort Lauderdale, FL – John P. D’Onofrio, along with co-defendants George E. Sarafianos and Scott D. Piccininnio, and their company AmeriFirst Management LLC, have been ordered to pay over $25 million in restitution and a $10 million civil penalty for operating a fraudulent precious metals scheme. The Supplemental Consent Order was entered on July 24, 2014, by Judge William P. Dimitrouleas of the U.S. District Court for the Southern District of Florida.
The CFTC initially filed a complaint against the defendants on July 30, 2013, alleging illegal, off-exchange precious metals transactions and fraud. Judge Dimitrouleas previously issued a Consent Order on September 18, 2013, finding the defendants liable for these charges. The latest order solidifies the financial penalties and permanent trading and registration bans against them.
According to court findings, the defendants operated an illegal scheme from at least November 2011 through February 2013. They used AmeriFirst, purportedly a precious metals clearing and financing firm, and a network of dealers to solicit investments in financed precious metals transactions. The defendants created falsified trade confirmations and account statements, falsely claiming customers purchased precious metals, that the metals were held on their behalf, and that loans were provided to finance the purchases. In reality, no metals were sold to or stored for the customers, nor were any loans extended.
The scheme ended when the defendants voluntarily closed AmeriFirst following a preliminary injunction against another metals dealer, Hunter Wise, in a separate CFTC case. The CFTC later won a jury trial against Wise in May 2014, securing a judgment of over $108 million in sanctions.
The CFTC advises potential victims that restitution may not fully recover losses, as the defendants may lack sufficient funds or assets. The agency remains committed to protecting customers and holding perpetrators accountable.
David Chu, Mary Elizabeth Spear, Ava Gould, Scott Williamson, Rosemary Hollinger, and Richard Wagner of the CFTC’s Division of Enforcement were responsible for the case.
Source: CFTC.gov
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