TEXAS MAN CHARGED WITH FOREIGN CURRENCY FRAUD
CFTC Charges Ross Erskine With Fraudulently Soliciting Foreign Currency Futures Customers By Making Misleading Profit Claims
WASHINGTON D.C. - The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of an enforcement action in the U.S. District Court for the Northern District of Ohio against Ross Erskine of Austin, Texas, and Goros, LLC, alleging fraud in the solicitation of foreign currency futures contracts. (CFTC v. Ross Erskine, and Goros, LLC, Civil Action No. 1:04 CV 0016, N. D. Ohio).
Specifically, the complaint, filed on January 6, 2004, alleges that -- from at least August 2001 to July 2002 -- Erskine and Goros, LLC, a company Erskine controlled, fraudulently solicited customers to purchase foreign currency futures contracts by means of misrepresentations or misleading statements made to clients and potential clients regarding the profit potential of such contracts. Erskine and Goros , according to the complaint, told customers that 1) they would earn 100 percent to 400 percent in one month's time; 2) they would earn a quarter to half a million dollars in two to three weeks, and 3) it was a "sure thing" they would make money. In fact, all customers lost money trading with Erskine and Goros, LLC, the complaint alleges.
The complaint further alleges that Erskine and Goros, LLC misrepresented commission charges to customers and that Erskine solicited customers using a false name and failed to disclose prior civil actions against him by the states of Texas and Wisconsin. At least 21 customers traded with Erskine and Goros, LLC, according to complaint.
In its litigation against the defendants, the CFTC is seeking a permanent injunction, disgorgement of ill-gotten gains, and a monetary penalty.
The following CFTC Division of Enforcement staff members are responsible for this case: Louis V. Traeger, Susan Gradman, William Janulis, Ken Hampton, Scott Williamson, and Rosemary Hollinger.
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