Case Status Report: IBS / IMC

June 2001: The Division is deeply engaged in the discovery period, which commenced around June 2001. This stage of the litigation involves, among other things, taking testimony from the defendants. The discovery period will last until January 2002.

Furthermore, the Division is engaged in multiple issues that have arisen both pre and post discovery. There is a hearing set for one of these issues on August 15, 2001 in the Federal District Court in Charlotte, NC. A trial date has been set for November 2002.

We have set up a recorded hotline, which we will update periodically, to help keep customers apprised of litigation developments. That number is 202-418-5099.

October 2000: In October 2000, a preliminary injunction hearing re: Samuel Kingsfield and IBS was held, and as of July 2001, we are still waiting the Court's decision on that.

June 2000: On June 20, 2000, the Honorable Judge Richard L. Voorhees, United States District Judge for the Western District of North Carolina, issued a preliminary injunction against defendants charged with engaging in an $18 million commodities scheme (see press release). In its continuing litigation against the defendants, the CFTC is seeking permanent civil injunctions in addition to other remedial relief including restitution to customers. The CFTC is further seeking disgorgement of funds transferred to International Bullion Services, Inc., Kimberlynn Creek Ranch, Inc., Kingsfield Racing, Inc., F. X. & B L. L. C., A. J. S. Enterprises, Inc., Samuel Kingsfield, and Pamela Kingsfield. As of July 2001, this preliminary injunction is still in effect.

March 2000: On March 13, 2000, the Division of Enforcement for the Commodity Futures Trading Commission initiated an action in the Western District of North Carolina which named as defendants, Alan J. Stein, Joseph E. Finateri, Sr., various domestic corporations that they control (among them IMC Trading and IBS, both North Carolina corporations), and Michael D. Temple. Named as relief defendants were Samuel Kingsfield, Pamela Kingsfield, as well as several corporations that they control (among them International Bullion Services Bahamas). The complaint charges defendants with fraud in connection with the sales of futures contracts, and with selling illegal futures contracts. The Complaint further charges relief defendants with having received customer funds to which they had no legal entitlement. The Complaint seeks injunctive relief and restitution.

Based on the CFTC's evidence, on March 13, 2000, the District Court entered an order which, among other things, prohibited the transfer or dissipation of any assets, funds or other property that were controlled by defendants or relief defendants. This order necessarily included any funds which were obtained from customers and held or controlled on their behalf by any of the named individuals or entities.

Related Documents:

Last Updated: March 23, 2011