Coral Gables, Florida resident Robert Escobio has been ordered to surrender to the U.S. Marshals Service after being found in contempt of court for failing to pay over $1.5 million in restitution, the Commodity Futures Trading Commission (CFTC) announced on April 1, 2019.
U.S. District Judge James Lawrence King of the Southern District of Florida issued the contempt order on March 18, 2019, following a two-day evidentiary hearing. Escobio was initially ordered to pay $1,543,892 in restitution in September 2017, stemming from a 2014 CFTC enforcement action against him and his now-defunct precious metals firm, Southern Trust Metals, Inc.
The original case found that Escobio masterminded a scheme to defraud customers through the sale of precious metals. The Eleventh Circuit Court of Appeals later denied Escobio’s appeal of the restitution order in July 2018. Despite this, Escobio had only paid $3,525 towards the owed amount.
Judge King determined that Escobio possesses over $900,000 in assets and benefits from an annual household income of approximately $250,000, in addition to receiving $200,000 to $300,000 in loans. The court found his minimal payments demonstrated a deliberate refusal to comply with the restitution order. The latest order requires Escobio to pay $350,000 immediately, plus $10,000 per month until the full restitution is satisfied.
“Investor protection and market integrity are two core components of the CFTC’s mission. We will not allow defendants with apparent means to pay, like Mr. Escobio, to shirk their restitution obligations at the expense of defrauded customers,” said James McDonald, Director of the CFTC’s Division of Enforcement.
Escobio has appealed the contempt order to the Eleventh Circuit Court of Appeals. The CFTC’s investigation was led by Ashley J. Burden, Carlin Metzger, Heather Dasso, Venice Bickham, Joseph Konizeski, Scott Williamson, and former staff member Rosemary Hollinger. The CFTC also acknowledged assistance from the National Futures Association and the Financial Industry Regulatory Authority.
Source: CFTC.gov
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