St. Cloud, Florida resident Ronald Montano and his company, Montano Enterprises LLC (MEL), have been slapped with a permanent injunction and ordered to pay $2.5 million following a fraud case brought by the Commodity Futures Trading Commission (CFTC). Judge Gregory A. Presnell of the U.S. District Court for the Middle District of Florida issued the order on September 15, 2021.
The court found that Montano and MEL engaged in solicitation fraud related to binary options trading. The pair will be required to pay $825,000 in restitution to victims and a $1.675 million civil monetary penalty. They are also barred from future violations of the Commodity Exchange Act (CEA) and CFTC regulations, prohibited from trading through CFTC-registered entities, and prevented from engaging in any activity requiring CFTC registration.
The CFTC initially filed a complaint against Montano and MEL on September 27, 2018, alleging fraudulent solicitations used to entice investors. These solicitations, delivered via email, websites, and video sales letters, falsely advertised access to successful automated trading systems for binary options involving commodity interests. The systems were promoted as capable of trading on behalf of clients.
According to the court’s findings, Montano and MEL misrepresented trading results as real when they were in fact hypothetical and fictitious. They also employed fabricated customer testimonials and falsely portrayed the experience and qualifications of the individuals supposedly behind the automated trading systems.
The CFTC cautioned that restitution orders do not guarantee victims will recover their losses, as wrongdoers may lack sufficient assets. The agency pledged continued vigilance in protecting customers and holding accountable those who violate commodity trading laws.
The case was led by CFTC staff members Nina Ruvinsky, Ben Sedrish, Joseph Patrick, Allison Passman, Scott Williamson, Brigitte Weyls, Robert Howell, and former staff member Barry Blankfield.
Source: CFTC.gov
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