Release: 4337-99 (99-Civ 6560)
For Release: November 12, 1999
Florida Court Enters Order of Default and Permanent Injunction Against EuroPacific Equity and Capital Management, Ltd., Tortola Corporation Company, Ltd., International Investment Group, Ltd., and Richard Tichy in CFTC Enforcement Action Charging Commodity Pool Fraud
Order Requires Defendants to Pay in Excess of $10 Million in Restitution and Civil Monetary Penalties
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today the entry of an order of default and permanent injunction by U.S. District Judge William P. Dimitrouleas of the U.S. District Court for the Southern District of Florida against EuroPacific Equity and Capital Management, Ltd. (EuroPacific), Tortola Corporation Company, Ltd. (Tortola), International Investment Group, Ltd. (IIG), and Richard Tichy (Tichy).
The order, entered on October 29, 1999, enjoins EuroPacific, Tortola, IIG, and Tichy from violating the antifraud, registration, and disclosure and reporting provisions of the Commodity Exchange Act (CEA) and CFTC regulations, and requires them to pay restitution to defrauded individuals in the amount of $2,595,280 (plus pre- and post-judgment interest), to disgorge all benefits obtained as the result of their illegal acts, and to pay a civil monetary penalty of $7,785,841.
The court's order also enjoins defendants from seeking registration with the CFTC in any capacity, engaging in any business activities related to commodity futures trading, entering into any commodity futures or option transactions, and soliciting or accepting any funds in connection with the purchase or sale of commodity futures or option contracts. In addition, the order enjoins the transfer, withdrawal, or removal of defendants' funds and property, and the destruction, concealment, or alteration of their books and records.
Order Stems from CFTC Enforcement Action Filed in May 1999 Against the Defendants
The order stems from a CFTC enforcement action filed on May 5, 1999, seeking an ex parte statutory restraining order and other injunctive and ancillary relief against EuroPacific, a corporation registered in the British Virgin Islands and in Florida; Tortola, an international corporation registered in the British Virgin Islands; IIG, a corporation registered in the British Virgin Islands; Tichy of Parkland, Florida; and David Michael Loyd of Plantation, Florida. (See CFTC News Release 4264-99, May 19,1999.)
The CFTC complaint alleged that the defendants fraudulently solicited individuals from the United States and Canada to invest funds in a commodity pool variously called the EuroPacific or IIG Fund. The complaint further alleged that the vast majority of investor funds were misappropriated by transferring them to persons and entities unrelated to any commodity pool, and by using them to pay for personal expenses. Finally, the complaint alleged that the defendants violated the registration provisions and the disclosure and reporting requirements of the CEA and CFTC regulations.
The CFTC's litigation in the case continues against David Michael Loyd, the only remaining defendant.
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