Delray Beach, FL – The Commodity Futures Trading Commission (CFTC) has secured consent orders against Stuart Rubin, Richard Q. Zimmerman, and their company, Mintco LLC, for engaging in illegal and fraudulent precious metals transactions. The orders, entered December 19, 2017, by Judge Beth F. Bloom of the U.S. District Court for the Southern District of Florida, stem from an enforcement action initially filed September 16, 2015.
The CFTC found that Mintco and its owners conducted unlawful off-exchange precious metals transactions with retail customers, failing to meet requirements outlined in the Dodd-Frank Act of 2010. Specifically, the transactions did not result in actual delivery of metals within 28 days, and the customers did not qualify as Eligible Contract Participants (ECPs). The agency determined that Mintco never delivered any precious metals to its customers.
Rubin and Mintco were further found to have defrauded customers by misrepresenting key facts. These included falsely claiming to act in customers’ best interests as an agent or representative, failing to disclose the break-even price of investments, and omitting information that over 80% of customer investments in financed precious metals failed to yield a profit after accounting for associated costs.
Under the consent orders, Mintco is required to pay a $250,000 civil monetary penalty. Rubin and Zimmerman will each pay $45,000 in civil penalties. Additionally, Rubin faces a three-year trading ban and permanent registration ban, while Zimmerman will be subject to pre-review of promotional materials by the National Futures Association (NFA) if he seeks to become a principal of a CFTC registrant. All three defendants are permanently prohibited from engaging in illegal off-exchange precious metals transactions. Mintco was also found to be operating without the required registration as a Futures Commission Merchant.
The CFTC cautions tha
Source: CFTC.gov
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