POMPANO BEACH, FL – On May 7, 2007, the Commodity Futures Trading Commission (CFTC) announced a consent order issued by the U.S. District Court for the Southern District of Florida against Ted Romeo, along with Liberty Financial Trading Corp., Inc. (LFTC), and Liberty Real Assets Investment Corporation (LRAIC). The order mandates restitution and civil penalties totaling $16,403,000.
The case originated from a CFTC complaint filed on September 21, 2004, alleging that LFTC, LRAIC, and Romeo engaged in the misrepresentation of facts and omission of material information when soliciting customers to trade commodity options. These actions violated the Commodity Exchange Act and related CFTC regulations.
According to the consent order, from early 2002 through 2004, LFTC, LRAIC, and Romeo misrepresented the potential for profits in commodity options trading. They also failed to adequately disclose the inherent risks of loss and concealed their own poor trading performance on behalf of customers. Data revealed that 96% of LFTC and LRAIC customers lost money – approximately $10 million – during this period, while the companies generated around $6 million in commissions and fees.
The order requires LFTC and LRAIC to pay $9.783 million in restitution to affected customers. Ted Romeo is jointly and severally liable for $300,000 of this restitution. Furthermore, civil monetary penalties of $6 million were assessed against LFTC, $500,000 against LRAIC, and $120,000 against Romeo. The order permanently prohibits LFTC, LRAIC, and Romeo from participating in any commodity-related activities, including soliciting funds or trading in CFTC-regulated markets.
The CFTC’s case was led by Alan Edelman, James Holl III, Lacey Dingman, Gretchen Lowe, and Vincent McGonagle of the Division of Enforcement.
Source: CFTC.gov
Related Federal Cases
- Ted Albin, Medicare Scam Mastermind, New York NY, 2023 · New York
- Orlando Pascual Jr., HIV Treatment Medicare Fraud, Miami FL, 2023 · Mississippi
- Juan A. Tony Marrero, Medicare Fraud Scheme, Miami FL, 2023 · Texas
- Juan A. Tony Marrero, Medicare Fraud Scheme, Miami FL, 2024 · Florida
- Alton Plunkett, Tax Fraud, New York NY, 2023 · New York
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News