For Release: April 14, 2003
GEORGIA FEDERAL COURT ORDERS ATLANTA FOREIGN CURRENCY FIRM AND ITS CHIEF EXECUTIVE OFFICER TO PAY BACK $662,000 TO DEFRAUDED INVESTORS
Order Also Imposes Civil Penalty of $1.7 Million On Samuel Daley and Advent Capital Partners, Ltd.
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today that a Georgia federal district court entered an order of default judgment in its favor requiring defendants Samuel Daley (Daley) and Advent Capital Partners, Ltd. (Advent), to pay $662,954 in restitution to defrauded investors and a civil penalty of $1,721,093 as a result of their violations of federal commodity laws.
The court’s order finds that from at least December 21, 2000 through May 2002, defendants solicited funds from investors, purportedly to trade “spot” foreign currency (FOREX) contracts. However, the order finds that defendants actually engaged in trading illegal, off-exchange futures contracts.
The court’s order, entered on April 1, 2003, stems from a complaint filed by the CFTC against Advent and Daley in the United States District Court for the Northern District of Georgia on May 21, 2002 (see CFTC News Release 4697-02). On August 7, 2002 and November 21, 2002 defaults were entered against Advent and Daley, respectively, for their failure to respond to the CFTC’s allegations.
The court’s order also permanently enjoins defendants from further violations of section 4(a) of the Commodity Exchange Act and imposes a permanent trading ban.
The following staff members of the CFTC Division of Enforcement are responsible for this case: Eugene Smith, Michael Jones, Peter Haas, and Karen Kenmotsu.
Media Enforcement Contact:
Paul G. Hayeck, Associate Director
CFTC Division of Enforcement
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