FEDERAL COURT ORDERS OHIO RESIDENT KEITH ELSESSER TO REPAY CUSTOMERS IN FRAUDULENT FOREIGN CURRENCY OPTIONS SCHEME
Elsesser Also Required to Pay Civil Penalty of $120,000
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today that the United States District Court for the Middle District of Florida has issued a consent order of permanent injunction requiring defendant Keith Elsesser, of Elkton, Ohio, to repay $72,000 to three defrauded customers and to pay a civil penalty of $120,000 in a fraudulent foreign currency options scheme.
The consent order, entered on January 26, 2004, by the Honorable Steven D. Merryday, settles CFTC charges against Elsesser arising out of the CFTC’s complaint in CFTC v. Keith Elsesser and Phoenix Global Trading, Inc., Civ. No. 8:03-CV-681-T-23TBM (See CFTC News Release 4781-03, April 29, 2003).
According to the CFTC complaint, Elsesser fraudulently solicited three customers to invest in illegal, off-exchange foreign currency options contracts. As alleged, Elsesser never used the customers’ money to purchase any options contracts, as he had represented but, instead, misappropriated virtually all the funds he solicited or approximately $72,000 for his own business and personal uses.
The order requires Elsesser to pay $72,000 in restitution and a $120,000 civil monetary penalty contingent on his payment of restitution first, while permanently prohibiting him from managing or directing the trading of accounts for others or trading commodity futures or options for his own account.
The following CFTC Division of Enforcement staff were responsible for this case: Mark Bretscher, Robert Greenwald, Ken Hampton, Rosemary Hollinger and Scott Williamson.
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