For Release: September 22, 2003
U.S. COMMODITY FUTURES TRADING COMMISSION CHARGES PHOENIX-AREA MAN AND HIS COMPANIES WITH DEFRAUDING INVESTORS IN $25 MILLION SCAM
Ronald Holt, International Funding Association, Global Management Group, Inc., and Cambridge Global Group Charged with Misappropriation, Solicitation Fraud, and Offer of Illegal Off-Exchange Futures Contracts
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a two-count complaint on September 18, 2003, in the United States District Court for the District of Arizona against Ronald Stephen Holt (Holt) of Mesa, Arizona; International Funding Association (IFA) of Phoenix, Arizona; Global Management Group Inc. (GMG); and Cambridge Global Group (Cambridge), charging that Holt and his companies have defrauded investors of as much as $25 million since 1997. The complaint also charges Holt and his companies with offering illegal off-exchange futures contracts to the public by claiming returns of seven to ten percent per month, when in fact the defendants allegedly misappropriated most customer funds.
According to the complaint, defendants marketed the investment as a form of asset protection plan, which purportedly invested customer funds in “high return, low risk” investment opportunities, including commodities such as precious metals and foreign currencies. Defendants allegedly diverted customer funds to various trust accounts, and then moved the funds offshore. The complaint continues that, unbeknownst to the customers, the corporate defendants were shell corporations without physical office space, utilizing various postal drop boxes, cell phone and facsimile numbers in lieu of real offices. As alleged, corporate defendants claimed to relocate in 2000 to an address in the Bahamas.
Court Issues Statutory Restraining Order
As a result of the complaint, the United States District Court issued a statutory restraining order freezing the defendants’ assets and ordering the preservation of their books and records. The CFTC is seeking a permanent injunction against each defendant, repayment to defrauded customers, return of all ill-gotten gains from the defendants, and civil penalties for each violation of the Commodity Exchange Act.
The CFTC acknowledges the cooperation and invaluable assistance of the United States Securities and Exchange Commission, which simultaneously filed an action against Holt.
The following CFTC Division of Enforcement staff members are responsible for this case: Timothy Mulreany, Karon Powell, Mary Kaminski, and Paul Hayeck.
A copy of the CFTC complaint and restraining order may be obtained at
Media Case Enforcement Contact:
Paul G. Hayeck, Associate Director
CFTC Division of Enforcement
# # #