Robin States and his wife, Bernadette Bowden, have been ordered to pay over $2.2 million in fines and restitution following a federal court judgment for fraudulent solicitation and misappropriation of funds. The judgment, entered November 9, 2009, by the U.S. District Court for the Southern District of Florida, also names Paul States, Robin’s brother, as a relief defendant.
The Commodity Futures Trading Commission (CFTC) brought the action against the trio alleging they operated a fraudulent commodity pool called Infinity Online Investors Group (Infinity). The court found that States and Bowden fraudulently solicited approximately Can$643,047 from around 900 individuals in the United States, Canada, and other locations, promising investment in commodity futures, options, foreign exchange, and precious metals.
However, according to court documents, Infinity never engaged in any actual trading. Instead, States and Bowden allegedly misappropriated the funds, using them to pay earlier investors – creating the illusion of profits – and to cover personal expenses. Funds were also allegedly funneled to Paul States, who had no legitimate claim to the money.
The court ordered States and Bowden to jointly and severally pay Can$643,047 in restitution. Additionally, Robin States faces a $910,000 civil monetary penalty, while Bowden will pay $520,000. Paul States was ordered to disgorge Can$230,481 in ill-gotten gains. The orders permanently prohibit Robin States and Bernadette Bowden from engaging in any commodity-related activity, including registering with the CFTC.
The CFTC investigation received assistance from multiple Canadian securities commissions, including those in Nova Scotia, British Columbia, Quebec, Ontario, and Alberta, as well as the Royal Canadian Mounted Police and the Autorité des Marchés Financiers of France.
Source: CFTC.gov
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