HOLLYWOOD, FL – February 25, 2009 – Michele LaBruce of Hollywood, Florida, has been charged by the Commodity Futures Trading Commission (CFTC) with defrauding customers out of over $1.4 million through a commodity options scam operated by Zurich Futures & Options, Inc. The CFTC filed a complaint in the U.S. District Court, Southern District of Florida, on February 24, 2009, alleging fraudulent solicitation, false claims of registration, and operating as an unregistered Introducing Broker (IB).
According to the complaint, from approximately April 2006 to March 2007, LaBruce and Zurich fraudulently solicited approximately $1.45 million from at least 60 customers seeking to trade commodity options. The scheme specifically targeted Canadian and other non-U.S. citizens. Defendants falsely claimed that Zurich was a member of the National Futures Association (NFA) and registered with the CFTC as an IB, creating the false impression of a successful, well-established international brokerage with experienced investment teams and offices in Zurich, Switzerland, and Toronto, Canada.
The CFTC alleges that Zurich was a sham operation based in Hollywood, Florida. The company utilized mail drop offices in Switzerland and Canada to reroute customer communications and mailings, effectively concealing its true location. In less than a year, Zurich collected over $1.3 million in commissions and fees while customers lost nearly all of their investments. The operation abruptly ceased without notice to customers, leaving them with no means of contact.
The complaint charges LaBruce directly with fraud and holds her liable for Zurich’s fraudulent activities. Furthermore, the CFTC alleges that Zurich and LaBruce were required to be registered as an IB and Associated Person, respectively, but failed to do so.
This is not LaBruce’s first involvement in CFTC enforcement actions. She is married to Adam Leon, who was previously ordered to pay $1.5 million in restitution and a $1 million civil monetary penalty in September 2006 for a similar fraudulent solicitation case involving Presidential FX. Leon was also permanently barred from engaging in any commodity-related activity.
The CFTC received assistance in this investigation from the Belize Financial Intelligence Unit, the Ontario Securities Commission, the Swiss Federal Market Supervisory Authority, and the Israel Securities Authority.
Source: CFTC.gov
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