Washington, DC – On March 21, 2014, the U.S. Commodity Futures Trading Commission (CFTC) announced a judgment against Patrick Cole, of Ontario, Canada, for his role in a multi-million dollar foreign currency (forex) Ponzi scheme. The case, heard in the U.S. District Court for the Northern District of Ohio, found Cole and his company, Global Strategic Marketing, Inc. (GSM), liable for fraud.
Judge David D. Dowd Jr. issued a permanent injunction and order on February 26, 2014, requiring Cole and GSM to disgorge $1,146,399 and pay civil monetary penalties of the same amount – totaling over $2.2 million. The order also permanently bans Cole and GSM from trading and registering with the CFTC, and prohibits future violations of the Commodity Exchange Act’s anti-fraud provisions.
The court found that GSM, while marketing a fraudulent forex investment program offered by Complete Developments, LLC (CDL), repeatedly made false claims regarding low risk, guaranteed principal returns, and high investment rates. These statements were based on information received from CDL principal Kevin Harris, and GSM failed to independently verify their accuracy. GSM also falsely claimed to have conducted due diligence on CDL, despite not doing so.
The court determined GSM acted with reckless disregard for the truth, failing to adequately investigate CDL or address investor complaints. Furthermore, the ruling establishes that Cole is liable for GSM’s violations due to his control over the company and “actual knowledge of all of GSM’s activities” relating to CDL.
This judgment follows a May 2013 ruling against CDL, its principals (Kevin Harris, Keelan Harris, and Karen Starr), and Investment International Inc., which resulted in penalties and restitution exceeding $23 million in connection with the same fraudulent scheme.
The CFTC encourages customers to report suspicious activity or potential violations of commodity trading laws.
Source: CFTC.gov
Related Federal Cases
- James W. Wallace, Investment Fraud, Ohio 2023 · Washington
- Michael Chrisman, Replica Bible Fraud, Ohio 2024 · New York
- Gerardo Heriberto Nuñez Nuñez, Elder Fraud Scheme, Boston MA, 2026 · Washington
- June Gibbs-Brown, Healthcare Fraud Enforcement, Washington DC, 1993 · Washington
- June Gibbs Brown, Health Care Fraud Fighter, Washington DC, 2023 · Washington
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News