RICHMOND, VA – May 23, 2013 – William Center has been ordered to pay $455,430 in restitution, plus a $4 million civil penalty, following a bench trial concluded on April 24, 2013, in the U.S. District Court for the Southern District of Florida. Judge Daniel Hurley issued the Final Judgment Order on May 17, 2013, finding Center liable for his role in a multi-million dollar Ponzi scheme.
The case, initially filed on June 22, 2010, alleged that Center, along with Philip Milton, Gregory Center, and their company Trade, LLC, fraudulently solicited approximately $28.4 million from over 2,000 customers. The funds were intended for investment in a commodity pool trading futures and securities, but were instead misappropriated for personal use and to perpetuate the fraudulent scheme. The total misappropriated funds amounted to at least $9.6 million, according to the CFTC complaint.
Gregory Center was also penalized, ordered to pay $265,661.14 in restitution and a $2 million civil monetary penalty. While both William and Gregory Center previously consented to liability, they were unable to reach a settlement with the CFTC regarding restitution and penalties, leading to the trial before Judge Hurley.
The CFTC also pursued legal action against Philip Milton and Trade, LLC, as well as four corporate “Relief Defendants” that received funds resulting from the misappropriation. These cases were resolved through supplemental consent orders entered on April 24, 2013.
The Commodity Futures Trading Commission was assisted in the investigation by the U.S. Securities and Exchange Commission and the Florida Office of Financial Regulation. The case was led by CFTC staff members Jason Mahoney, Timothy J. Mulreany, George Malas, Paul Hayeck, and Joan Manley.
Source: CFTC.gov
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