Fayetteville, GA – Louis J. Giddens Jr., Anthony W. Dutton, and Michael Gomez have been ordered to pay restitution and penalties for defrauding investors in a foreign currency (forex) scheme, the U.S. Commodity Futures Trading Commission (CFTC) announced on October 29, 2013. The U.S. District Court for the Northern District of Georgia issued a consent order on October 2, 2013, following a CFTC complaint filed on June 23, 2011.
Giddens, of Fayetteville, Georgia, Dutton, of Peachtree City, Georgia, and Gomez, of Valrico, Florida, solicited funds from friends and co-workers to trade forex off-exchange. From January to October 2010, Giddens and Dutton operated Currency Management Group, LLC and Pinnacle Capital Partners, LLC, respectively, to gather these funds. The funds were then transferred to Pinnacle Trade Group, LLC, which was also operated by Giddens and Dutton, for forex trading.
The court found that not all investor money was actually used for forex trading. Some funds were allegedly retained by Gomez and Dutton. Additionally, Giddens and Dutton advertised guaranteed monthly returns of five or ten percent on their websites, failing to disclose the inherent risks of forex trading or that past performance did not guarantee future results. They also issued promissory notes promising repayment of principal plus monthly interest, again without disclosing any risk.
As a result of the court order, Giddens is required to pay $29,759.49 in restitution and a $100,000 civil penalty. Dutton must pay $56,604.35 in restitution and a $100,000 penalty, while Gomez is ordered to pay $68,000 in restitution and $75,000 in penalties. All three defendants are permanently banned from trading and registration, and are prohibited from violating the anti-fraud provisions of the Commodity Exchange Act.
The CFTC acknowledged the assistance of the U.S. Attorney’s Office (Civil Division), Northern District of Georgia, in the case.
Source: CFTC.gov
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