For Release: July 14, 2009
CFTC Charges Weston, Florida Man with Operating a $14 Million Dollar Fraudulent Commodities Scheme
Investors’ Money Allegedly Used to Buy a $2.4 Million Home, Luxury Cars, and Jewelry; Court Freezes Assets and Appoints Receiver
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today charged Sean Nathan Healy (Healy) of Weston, Florida with operating a fraudulent commodities scheme that defrauded at least 44 investors of approximately $14 million.
The CFTC complaint, filed in the U.S. District Court for the Middle District of Pennsylvania on July 12, 2009, alleges that Healy defrauded investors by falsely claiming that he would invest their funds to trade commodity futures and options contracts. Contrary to Healy’s claims, he allegedly did not use investors’ funds to trade futures, options, or other instruments; rather, Healy misappropriated investors’ funds.
For example, the complaint alleges that Healy and his wife, Relief Defendant Shalese Rania Healy, also of Weston, Florida, used investor money to purchase numerous luxury vehicles (including a Porsche, Lamborghini, and several Ferraris), approximately $1.4 million worth of jewelry, gold bullion, and a $2.4 million home. The misappropriated investor funds were also allegedly used to fund approximately $2 million in home improvements and furnishings, including a $500,000 home movie theater, and to lease 2,500 square feet of garage space to store the vehicles. The stolen investor funds also were allegedly used to lease a luxury suite at Miami’s BankAtlantic Arena.
The CFTC complaint further alleges that Healy repeatedly told an investor that Healy’s futures and options trading was earning excellent returns and that distributions of these tremendous trading profits would be made in February 2009. In fact, the futures and options trading did not occur as represented by Healy.
Two Relief Defendants Named
Sand Dollar Investing Partners, LLC, a Nevada Limited Liability Company, was named in the complaint as relief defendant, along with Shalese Rania Healy, because they received funds as a result of Healy’s fraudulent conduct and have no legitimate entitlement to these funds.
Court Order Freezes Assets and Appoints Receiver
At the CFTC’s request, on July 13, 2009, the day after the complaint was filed, U.S. District Court Judge Honorable Christopher C. Conner appointed Melanie E. Damian of Miami, Florida, as Receiver, froze Healy’s and the Relief Defendants’ assets, and permitted the CFTC and the Receiver to seize all relevant records in the possession of Healy and the Relief Defendants. A preliminary injunction hearing was set for July 23, 2009.
In the continuing litigation, the CFTC seeks restitution, disgorgement of ill-gotten gains, civil monetary penalties, and permanent injunctions against further violations of the federal commodities laws and CFTC regulations and against further trading.
The CFTC appreciates the assistance of the Securities and Exchange Commission, which simultaneously filed a related emergency action against Healy and the Relief Defendants. The CFTC also thanks the United States Attorney’s Office for the Middle District of Pennsylvania for its assistance in this matter.
The following CFTC Division of Enforcement staff members are responsible for this case: Braden Perry, Charles Marvine, Michael Loconte, Jill Warren, Rick Glaser, and Richard Wagner.
Last Updated: July 14, 2009