Release 4456-00 (Civ. 00-6885, S.D. Florida)
For Release October 2, 2000
FLORIDA DISTRICT COURT ISSUES DEFAULT ORDERS OF PERMANENT INJUNCTION AGAINST INDIVIDUALS AND CORPORATIONS PROHIBITING THEM FROM CONTINUING TO OPERATE A FRAUDULENT PRECIOUS METALS SCHEME
Courtís Order Also Enjoins Them From Soliciting or Accepting Customers For Commodity Futures or Options Trading and Bars Them From Seeking Registration or Acting In Any Capacity Requiring Registration with the CFTC; Court Will Determine The Amount of Civil Monetary Penalties, Restitution and Disgorgement To Be Imposed
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) today announced today that on September 11, 2000, the Honorable William J. Zloch, Chief Judge of the United States District Court for the Southern District of Florida, issued orders of permanent injunction by default against National Bullion and Coin, Inc. of Fort Lauderdale, Florida, Capital Credit Management & Finance, Inc. of Lauderhill, Florida, Joseph B. Flanigan of Plantation, Florida, and Lawrence Colman of Lauderhill, Florida in a CFTC case involving the fraudulent sale of illegal precious metals futures contracts.
The court also entered judgment in favor of the CFTC as to civil monetary penalties, restitution and disgorgement, and ordered the CFTC to submit evidence and arguments supporting final amounts of the proposed monetary relief.
The court's orders stem from a two-count CFTC complaint filed by the CFTC on June 28, 2000 against National Bullion and Coin, Inc., Capital Credit Management & Finance, Inc., Joseph B. Flanigan, and Lawrence Colman. The complaint charged the defendants with fraudulently telemarketing illegal futures contracts in such commodities as gold, silver, and platinum. The complaint alleged that customers were defrauded about the nature of the investments they were making and the risk and profit potential of the futures contracts. (See CFTC News Release 4415-00, July 5, 2000).
The permanent injunctions imposed by the court enjoin the defendants from soliciting customers or accepting funds for commodity futures or options trading and from seeking registration in any capacity or acting in any capacity, including an exempt capacity, as registrant. Further, the permanent injunctions also continue an asset freeze against the defendants and a receivership over the corporate defendants, which the court had earlier imposed as part of a June 29, 2000, ex parte statutory restraining order.
CFTC Issued a Consumer Alert Regarding Precious Metals Investment Schemes
In light of its recent enforcement activity in this area, on July 5, 2000, the CFTC issued a consumer advisory alerting consumers to be wary of claims of high profits and low risk from such precious metals investments and providing warning signs of phony sales pitches and other commodity "come-ons" (see CFTC News Release 4416-00, July 5, 2000).
NBC/CCMF customers are advised to directly contact the CFTC should they have any questions regarding their NBC/CMMF accounts.
# # #