LAGUNA NIGUEL, CA – December 16, 2010 – Ryan A. Nassbridges, 41, of Laguna Niguel, California, is facing charges of fraud and misappropriation following a civil complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on December 8, 2010. The complaint alleges Nassbridges and his companies, American Bullion Exchange ABEX, Corp. and American Bullion Exchange, LLC, both of Irvine, California, defrauded at least 80 customers out of approximately $5.5 million in a precious metals scheme.
According to the CFTC, Nassbridges solicited funds from investors with false promises. He allegedly claimed investments would be limited to bullion and coins, held in segregated accounts, insured against loss, and protected by stop-loss orders. He also purportedly falsely stated he was registered with the CFTC.
However, the CFTC alleges Nassbridges instead used a significant portion of the $5.5 million to trade commodity futures and options – including gold and silver futures – incurring approximately $2.2 million in trading losses. These losses and the risky nature of futures trading were never disclosed to investors. Furthermore, the complaint details a Ponzi scheme, where funds from newer investors were used to pay purported profits to earlier investors.
The CFTC alleges Nassbridges misappropriated millions of dollars for personal expenses. Specifically, he reportedly used $586,100 for mortgage payments, $305,000 for credit card payments, $90,100 for car payments, and over $157,700 in cash withdrawals.
Nassbridges’ wife, Bita Nassbridges, and other companies he controlled have been named as relief defendants, with the CFTC seeking to recover funds allegedly obtained through the fraudulent scheme. The CFTC also alleges Nassbridges attempted to conceal his fraud through false testimony.
The CFTC is seeking civil monetary penalties, a trading and registration ban against Nassbridges and his companies, and the disgorgement of all ill-gotten gains from the relief defendants. The case is being handled by Kevin S. Webb, Michelle S. Bougas, Heather Johnson, James H. Holl III, Gretchen L. Lowe and Phyllis J. Cela of the CFTC’s Division of Enforcement.
Source: CFTC.gov
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