Release: 4504-01 (Civ. 00-6885, S.D. Florida)
For Release: April 4, 2001
FLORIDA DISTRICT COURT ISSUES FINAL ORDER OF JUDGMENT AGAINST NATIONAL BULLION AND COIN, INC., CAPITAL CREDIT MANAGEMENT & FINANCE, INC., JOSEPH B. FLANIGAN, AND LAWRENCE COLMAN
Order Requires Defendants to Pay in Excess of $12 Million in Restitution and Civil Monetary Penalties in Case Involving the Fraudulent Marketing of Illegal Precious Metals Futures Contracts
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) today announced that on March 28, 2001, the Honorable William J. Zloch, Chief United States District Judge for the Southern District of Florida, issued an Order of Final Judgment Concerning Restitution, Disgorgement, and Civil Monetary Penalties against defendants National Bullion and Coin, Inc. (NBC) of Fort Lauderdale, Florida; Capital Credit Management & Finance, Inc. (CCMF) of Lauderhill, Florida; Joseph B. Flanigan of Plantation, Florida; and Lawrence Colman of Lauderhill, Florida.
The court's order stems from a two-count complaint filed by the CFTC on June 28, 2000, charging the defendants with fraudulently telemarketing illegal futures contracts in such commodities as gold, silver, and platinum (see CFTC News Release 4415-00, July 5, 2000).
The order requires NBC, CCMF, Flanigan, and Colman, jointly and severally, to pay restitution to defrauded customers in the amount of $2,456,510.80 (plus pre- and post-judgment interest); for each defendant to pay a civil penalty of $2,456,510.80, for Colman to disgorge $224,436.73 and Flanigan to disgorge $20,952.20.
Previously, on September 11, 2000, the court entered a permanent injunction on default against each of the defendants, finding that they had engaged in fraud in connection with the solicitation of illegal off-exchange futures contracts in precious metals. The order of March 28 gives effect to the sanctions portion of that ruling.
The permanent injunction enjoins the defendants from soliciting customers or accepting funds for commodity futures or options trading. The permanent injunction further enjoins defendants from seeking registration in any capacity or acting in any capacity, including an exempt capacity, as a futures commission merchant, commodity pool operator, commodity trading advisor, introducing broker, associated person, floor broker, or floor trader. The permanent injunction also continues an asset freeze against the defendants and a receivership of the corporate defendants that the court had imposed as part of a June 29, 2000, ex parte statutory restraining order.
CFTC Consumer Alert Warns Public About Precious Metals Investment Schemes
A consumer advisory is posted on the CFTC website ( www.cftc.gov/cftc/cftccustomer.htm) 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).
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