Boynton Beach, FL – February 3, 2016 – The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Joseph Charles DiCriscio, of New York, New York, and Oakmont Financial, Inc., of Boynton Beach, Florida. The complaint, filed in the U.S. District Court for the Southern District of Florida, alleges that DiCriscio, an owner and principal of Oakmont, engaged in illegal, off-exchange precious metals transactions with retail customers.
According to the CFTC, from at least July 16, 2011, through July 27, 2012, Oakmont solicited customers via telephone to participate in leveraged, margined, or financed precious metals transactions. The company allegedly collected at least $2,308,228 from over 107 customers, earning commissions and fees totaling at least $735,329. The CFTC further alleges that Oakmont acted as a Futures Commission Merchant (FCM) without registering with the agency, a violation of the Commodity Exchange Act (CEA).
The transactions are considered illegal under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which requires actual delivery of the metals within 28 days for leveraged or financed transactions. The CFTC claims that Oakmont never delivered the metals to its customers.
The complaint also details Oakmont’s use of Hunter Wise, LLC to execute the illegal transactions. The CFTC previously pursued an enforcement action against Hunter Wise in 2012, resulting in a court finding in 2014 that Hunter Wise also engaged in illegal precious metals transactions, failed to register as an FCM, and fraudulently misrepresented the nature of the transactions, causing millions in customer losses. The Eleventh Circuit Court of Appeals affirmed the lower court’s rulings.
The CFTC is seeking disgorgement of all ill-gotten gains, civil penalties, and a permanent injunction against Oakmont and DiCriscio. The case is ongoing.
Source: CFTC.gov
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