Neil Pecker, Fraud, Florida 2017
Neil Pecker, of Longwood, Florida, has been ordered to pay over $6.5 million in restitution and penalties for defrauding investors in a binary options scheme, the U.S. Commodity Futures Trading Commission (CFTC) announced March 21, 2017. Judge James I. Cohn of the U.S. District Court for the Southern District of Florida entered a Consent Order against Pecker and his company, Vision Financial Partners, LLC, on March 9, 2017.
The Order requires Pecker and Vision, jointly and severally, to pay $2,777,130 in restitution to over 120 defrauded investors in the U.S. and Canada, as well as a $3.75 million civil monetary penalty. The court also permanently banned Pecker and Vision from trading and registering with the CFTC, and prohibits them from future violations of the Commodity Exchange Act and CFTC Regulations.
The CFTC initially filed an enforcement action against Pecker, Vision, and related entities on February 16, 2016. The investigation revealed that Pecker and Vision fraudulently solicited funds from investors with misleading claims about their registration status, trading experience, and the potential profits of trading binary options. They failed to disclose that trading occurred through unregistered foreign firms and imposed restrictions on withdrawals, requiring clients to trade at least 20 times their initial investment before accessing funds.
According to the court’s findings, Pecker and Vision misappropriated almost $2 million in client funds, diverting the money to entities named as Relief Defendants in the case: Prometheus Enterprises, Inc., and GDCM Trust. These entities were also ordered to disgorge over $1 million in ill-gotten gains. The court found that the Relief Defendants provided no legitimate services and had no rightful claim to the client funds.
Pecker and Vision operated as unregistered Commodity Trading Advisors (CTAs), further violating CFTC regulations. The CFTC’s litigation is ongoing against two additional Relief Defendants, Westward International Ltd. and Coucarin Holdings, Ltd.
The CFTC reminds investors that court orders for restitution do not guarantee full recovery of lost funds, as wrongdoers may lack sufficient assets. The agency says it will continue to pursue legal action to protect customers and hold those responsible for fraud accountable.
Source: CFTC.gov
Source: https://www.cftc.gov/PressRoom/PressReleases/7536-17