COURT ENTERS DEFAULT JUDGMENT AGAINST NEW YORK FOREIGN CURRENCY FIRM AND OTHERS, ORDERING DEFENDANTS TO PAY OVER $30 MILLION IN PENALTIES AND $10 MILLION IN RESTITUTION TO CUSTOMERS
Judgment Entered In International Scam Against Defendants Eduard Dmanskiy and Sun Platinum and Relief Defendants Ocaline Int’l Corp., Hessar Alliance Inc., Klondike Int’l Inc., Pyrmont Alliance Corp., and Total Trading Services Ltd. Stemming From CFTC Charges That They Fraudulently Misappropriated Customer Funds And Traded Illegal, Off-Exchange Futures Contracts
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today that on August 19, 2004, the U.S. District Court for the Southern District of New York entered an order of final default judgment against defendants Eduard Dmanskiy (also known as Edward Dumansky), of Spring Valley, New York, and Sun Platinum Group LLC (Sun Platinum) of New York City, and Relief Defendants Ocaline Int’l Corp. (Ocaline), Hessar Alliance Inc. (Hessar), Klondike Int’l Inc. (Klondike), Pyrmont Alliance Corp. (Pyrmont), and Total Trading Services Ltd. (TTS), all parties in a CFTC enforcement action originally filed on September 12, 2003 (see CFTC News Release 4842-03, September 23, 2003).
The CFTC charged the defendants with fraud for misappropriating customer funds in a telemarketing scam involving retail customers that were solicited to trade foreign currency (forex) futures contracts. The CFTC also charged the defendants with trading illegal, off-exchange forex futures contracts. The relief defendants were charged with being gratuitous beneficiaries and custodians of proceeds that were derived from the defendants’ fraud.
The default judgment permanently enjoins defendants Dmanskiy and Sun Platinum from engaging in any activity relating to commodity interest trading and from engaging in any conduct that violates federal commodities laws, as alleged in the complaint. The judgment also requires the defendants to pay over $10 million to former customers of Sun Platinum and more than $30 million in civil penalties. The judgment further requires the relief defendants to disgorge more than $4 million in ill-gotten gains.
Specifically, the CFTC charged that from February 2003 until September 2003, defendants Dmanskiy and Sun Platinum defrauded more than 427 customers by misappropriating funds solicited from customers for purported opportunities to speculate on the value of foreign currencies. According to the complaint, instead of trading these funds, the defendants misappropriated nearly all of the money by transferring it to offshore bank accounts in the names of entities including relief defendants Ocaline, Hessar, Klondike, Pyrmont, and TTS, all of which are located in foreign jurisdictions.
The following CFTC Division of Enforcement staff members are responsible for this case: Lael E. Campbell, Jamie Brown, Mary Kaminski, Michael Jones, John Dunfee, Joseph Rosenberg, Paul Hayeck, and Joan Manley.
Customers may find more information related to their claims by going to http://www.cftc.gov/cftc/cftccustomer.htm#enfactions and looking under Enforcement Bulletins.
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