ORLANDO, FL – Marvin W. Courson III and Christopher A. Kertatos have been slapped with hefty fines and lifetime trading bans after a federal court found them guilty of defrauding customers through a precious metals scheme. The U.S. District Court for the Middle District of Florida entered consent orders on March 1, resolving a case brought forth by the Commodity Futures Trading Commission (CFTC).
The court ordered Courson to pay a $560,152.60 civil monetary penalty, in addition to $560,152.60 in customer restitution. Kertatos faces a $274,988 civil monetary penalty and must also repay $274,988 to defrauded customers. Both men are permanently banned from trading commodities and registering with the CFTC, and are prohibited from future violations of the Commodity Exchange Act (CEA).
The scheme, which ran from July 2016 to approximately January 2018, involved Alista Group, LLC, a Florida-based company controlled by Courson. Courson and Kertatos allegedly misappropriated customer funds intended for off-exchange precious metals transactions. Instead of investing the money as promised, they used it to speculate for Alista’s own account, cover business expenses, and make Ponzi-style payments to customers seeking to withdraw funds.
Kertatos further defrauded customers by diverting funds into personal and corporate bank accounts under his control, then using those funds for personal expenses unrelated to the precious metals transactions. The CFTC initially filed its enforcement case on July 16, 2020, following an investigation into the fraudulent activities. Previous judgments had already been entered against Alista Group, LLC and Luis M. Pineda Palacios, another party involved in the scheme.
The CFTC warns that victims may not fully recover their losses, as the defendants may lack sufficient assets. The agency stated it will continue to pursue accountability in the case. The investigation received assistance from the U.S. Secret Service, the Florida Office of Financial Regulation, and the Lee County Sheriff’s Office.
Source: CFTC.gov
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