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RELEASE: pr5793-10

  • Release: 5793-10
    For Release: March 11, 2010

    Federal Court Issues Preliminary Injunction against Virginia Resident Ronald W. Smith, Jr., Doing Business as Safeguard 3030 Investment Club, in Forex Fraud Scheme

    Order continues court’s asset freeze against Smith and prohibits him from further federal commodities law violations.

    Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) obtained a preliminary injunction against defendant Ronald W. Smith, Jr., d/b/a Safeguard 3030 Investment Club, of Vansant, Virginia, after a federal court held at hearing where the defendant also appeared.

    The order, arising from a CFTC anti-fraud enforcement action against Smith filed on February 23, 2010, continues the asset freeze the court entered against Smith at the outset of the CFTC’s action. The order also prohibits Smith from further violations of federal commodities law. Chief Judge James P. Jones of the U.S. District Court for the Western District of Virginia entered the order on March 5, 2010.

    The CFTC’s complaint charges Smith with fraudulently soliciting at least $800,000 from customers and misappropriating customer funds in an off-exchange foreign currency (forex) scam. The complaint also charges Smith with issuing false statements to customers to conceal the fraudulent misuse of funds. (See CFTC Press Release 5734-10, February 26, 2010, and CFTC v. Ronald W. Smith, Jr. et al., No. 1:10CV00009 [W.D. Va. 2010].)

    In its continuing litigation against Smith, the CFTC seeks restitution, disgorgement of ill-gotten gains, civil monetary penalties and a permanent injunction.

    The following CFTC Division of Enforcement staff are responsible of this case: August A. Imholtz III, Kara Mucha, James Garcia, Kassra Goudarzi, Michelle Bougas, Michael Solinsky, Gretchen L. Lowe and Phyllis J. Cela.

    Media Contacts
    Scott Schneider
    202-418-5080

    Dennis Holden
    202-418-5088

    Last Updated: April 2, 2010

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