LOS ANGELES, CA – June 28, 2012 – Robert Sorchini, of Los Angeles, California, has been hit with a hefty penalty following a default judgment entered by the U.S. District Court for the Central District of California on June 19, 2012. The judgment stems from a CFTC enforcement action filed in March 2011, alleging fraudulent promotion and sale of commodity trading systems.
The court found that from at least 2007 until March 2011, Sorchini, along with Trade Tech Institute, Inc. (Trade Tech), Technology Trading International, Inc. (Tech Trading), and Richard Carter, fraudulently marketed systems – including Trade Tech Analytics, Paradigm, Optimum, and others – to the public for use in trading futures contracts and options. Tech Trading was formed in April 2010 to continue the fraudulent activity.
According to the court, Sorchini and his associates made false representations about the profitability and track records of the systems, failed to adequately warn clients of the risks involved, and concealed losing performance records. They also allegedly published misleading testimonials and switched client accounts between systems without consent.
The court’s order requires Trade Tech to disgorge $2,910,245.10 and pay restitution of $2,386,970.38, alongside a civil monetary penalty of $8,730,735.30. Tech Trading must disgorge $423,140, pay restitution of $38,847.99, and a penalty of $1,269,420. Sorchini is personally responsible for disgorging $764,250.97, joint and several liability for $2,251,766.50 of Trade Tech and Tech Trading’s restitution, and a civil monetary penalty of $2,292,752.91.
Richard Carter, who entered into a consent order on February 29, 2012, must disgorge $992,352.93 and pay a penalty of $496,176.46.
The orders permanently bar Trade Tech, Tech Trading, Sorchini, and Carter from all commodity-related activity, including trading and registration with the CFTC. The case was brought jointly with the Commissioner of Corporations of the State of California.
Source: CFTC.gov
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