Ronald Steven Holt of Mesa, Arizona, has been permanently enjoined from engaging in commodity trading after being found liable for a multi-million dollar fraud scheme, according to a consent order entered by Judge Paul G. Rosenblatt of the U.S. District Court for the District of Arizona on April 11, 2006. The U.S. Commodity Futures Trading Commission (CFTC) originally filed the enforcement action against Holt, International Funding Association (IFA), Global Management Group (Global), and Cambridge Global Group (Cambridge) in 2003.
The court found that Holt and his companies engaged in solicitation fraud, illegal off-exchange commodity futures trading, and the misappropriation of customer funds dating back to 1997. Holt fraudulently solicited approximately $25 million from roughly 2,500 customers, falsely claiming to achieve monthly investment returns of seven to ten percent by trading commodity futures, including precious metals and foreign currencies.
The defendants misappropriated at least $14 million of the $25 million in customer funds. These stolen funds were used to purchase residential real estate, vehicles, artwork, gold coins, and other personal items for Holt, his family, and friends. The consent order imposes a judgment totaling nearly $32 million, held jointly and severally against the defendants. This includes over $14 million for repayment to defrauded customers, approximately $1.5 million in interest, and roughly $16 million in monetary penalties.
Holt was previously incarcerated in July 2004 after being held in civil contempt for failing to account for his assets, including $3 million in customer funds he admitted to sending to offshore accounts. As of the date of the order, Holt remained in prison and had not clarified the location of his assets. The case was jointly pursued with the U.S. Securities and Exchange Commission, which also filed a securities fraud suit against Holt in the same court.
The CFTC and SEC collaborated with court-appointed Receiver Lawrence Warfield and his counsel, Gutilla & Murphy, to seize nearly $1.5 million in assets. The CFTC acknowledged the cooperation of the U.S. Securities and Exchange Commission’s Ft. Worth Office, the United States Marshal’s Service, and the Arizona Securities Commission.
Source: CFTC.gov
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