A Florida federal court has ordered Joseph Charles DiCrisci to pay over $2.9 million in penalties for his role in a fraudulent precious metals scheme. Judge William P. Dimitrouleas of the U.S. District Court for the Southern District of Florida issued the order by default on February 1, 2017, following a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC).
DiCrisci, of Henderson, Nevada, was the owner and principal of Oakmont Financial Inc. (Oakmont). The CFTC charged DiCrisci and Oakmont with conducting illegal, off-exchange precious metals transactions on a leveraged, margined, or financed basis. Oakmont was also accused of acting as a Futures Commission Merchant (FCM) without proper registration.
The court’s order mandates DiCrisci pay $735,329 in disgorgement and a $2,205,987 civil monetary penalty. He is also permanently banned from trading and registering with the CFTC, and prohibited from engaging in further illegal off-exchange precious metals transactions. A similar default judgment was previously entered against Oakmont on November 8, 2016.
The investigation, stemming from a January 12, 2016 complaint, revealed that from at least July 16, 2011, through July 27, 2012, Oakmont solicited customers via telephone to participate in financed precious metals transactions. These transactions were deemed illegal as they did not result in actual delivery of the metals within the 28-day timeframe required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The court found that no precious metals were ever delivered to customers involved in these leveraged transactions.
The CFTC noted that victims may not fully recover their losses, as the defendants may lack sufficient assets. The agency stated it will continue to pursue legal action against fraudulent actors and protect commodity trading customers.
The case was led by CFTC Division of Enforcement staff members Kara Mucha, Erica Bodin, Kassra Goudarzi, James A. Garcia, Michael Solinsky, Charles Marvine, and Rick Glaser.
Source: CFTC.gov
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