Laurence Dodge of Fresh Meadows, New York, has been permanently barred from trading and registration in commodity markets after being charged with fraud by the U.S. Commodity Futures Trading Commission (CFTC). A federal court order, entered on June 20, 2013, by Judge Joseph F. Bianco of the U.S. District Court for the Eastern District of New York, requires Dodge to jointly pay nearly $250,000 in restitution to customers and a $150,000 civil monetary penalty.
The charges stem from a CFTC complaint filed on May 8, 2012, alleging that Dodge, along with Madison Dean, Inc. and George Athanasatos, fraudulently solicited approximately 19 individuals to invest around $415,000 in managed trading accounts. These accounts were used to trade off-exchange foreign currency (forex) contracts with high leverage.
According to the court order, Dodge misrepresented key facts about Madison Dean, including its history, client base, employee qualifications, and performance record. These misrepresentations were intended to create a false impression of the company’s success and stability. The company operated for just over a year, during which customers lost approximately $250,000 while Madison Dean collected roughly $112,000 in commissions and fees.
Madison Dean abruptly ceased operations without notifying customers or providing any means of contact. Prior to the order against Dodge, similar injunctions were issued against Madison Dean and Athanasatos on March 8, 2012, requiring them to jointly pay nearly $250,000 in restitution and imposing a $1 million penalty on Madison Dean and a $210,000 penalty on Athanasatos. They were also permanently banned from trading and registration. With the order against Dodge, the CFTC has concluded its litigation in this matter.
The CFTC acknowledged the assistance provided by the United Kingdom’s Financial Services Authority during the investigation. Alan I. Edelman, James H. Holl, III, Michelle Bougas, Gretchen L. Lowe, and Vincent A. McGonagle of the CFTC’s Division of Enforcement were responsible for the case.
Source: CFTC.gov
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