U.S. COMMODITY FUTURES TRADING COMMISSION APPLAUDS SUCCESSFUL PROSECUTION OF OPERATION WOODEN NICKEL DEFENDANT
Anthony Iannuzzi Convicted Of Wire Fraud and Conspiracy to Commit Wire Fraud In “Points For Cash” Scheme
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) today announced that federal prosecutors from the United States Attorney for the Southern District of New York (USAO) obtained a conviction by a jury of Anthony Iannuzzi, age 43, of Goshen, New York. Iannuzzi, formerly a principal of ITradeCurrency USA, LLC, a firm which the CFTC has alleged offered illegal foreign currency futures contracts, was convicted of wire fraud and conspiracy to commit wire or bank fraud. Sentencing is scheduled for July 27, 2005. The conviction follows Iannuzzi's arrest in November 2003, and subsequent indictment for conspiracy and wire fraud, following an 18-month undercover sting operation, named Operation Wooden Nickel, conducted by the USAO and the Federal Bureau of Investigation (FBI) in cooperation with the CFTC and the Securities and Exchange Commission (see press release #4867-03).
Iannuzzi was convicted of engaging in a scheme called “points for cash” in which banks were defrauded of profitable foreign currency trades. Through this scheme, foreign currency trades were diverted to pre-selected counterparties, to the detriment of banks, for the benefit of Iannuzzi and other alleged co-conspirators.
At sentencing, Iannuzzi faces a maximum time of incarceration for his conviction on the wire fraud count of 30 years and 5 years on the conspiracy count. Additional charges are still pending against Iannuzzi for his involvement in a scheme to defraud retail customers in the sale of foreign currency contracts.
The CFTC’s lawsuits against Iannuzzi are still pending in federal district court.
The CFTC was pleased to be able to provide assistance to the USAO and the FBI in this matter.
# # #