Charleston, SC – On May 9, 2012, the U.S. Commodity Futures Trading Commission (CFTC) secured a federal court order against Ronald E. Satterfield, of Charleston, South Carolina, for operating a $3.3 million foreign currency (forex) Ponzi scheme. Satterfield was ordered to pay $957,146 in restitution and a $2,871,438 civil monetary penalty.
The consent order, entered by Judge Richard M. Gergel of the U.S. District Court for the District of South Carolina, stems from a CFTC complaint filed November 8, 2010. The complaint alleged Satterfield fraudulently solicited funds from at least 70 individuals in South Carolina, North Carolina, Michigan, and Maryland, promising high returns through leveraged forex trading.
According to the court findings, Satterfield falsely claimed his forex trading was profitable, guaranteeing monthly returns of two to four percent. However, the order revealed that much of the customer deposits were used to pay existing investors – a hallmark of a Ponzi scheme – rather than being legitimately invested. Satterfield’s actual trading activity consistently resulted in losses.
A separate order was also entered against Nicholas Bos, of Ludington, Michigan, on April 25, 2012, requiring him to pay $849,146 in restitution and a $2,547,438 civil monetary penalty for his role in the scheme. Bos solicited customers to trade forex through accounts managed by Satterfield, falsely representing there was no risk to their deposits. He also failed to disclose commissions and fees collected from customer funds, and misappropriated $295,000 to purchase a home in Michigan, jointly held with his wife, Patricia Bos, who was ordered to disgorge the $295,000.
Both Satterfield and Bos are permanently banned from trading and registering with the CFTC. The CFTC also previously obtained a default judgment against corporate defendants Graham Street Forex Group, LLC and Shore-2-Summit Financial, LLC in June 2011, requiring them to pay over $5.6 million in relief and penalties and imposing similar trading and registration bans.
The CFTC received assistance from the U.S. Attorney’s Office, District of South Carolina, and the South Carolina Attorney General’s Office in the investigation.
Source: CFTC.gov
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