February 1, 2017
Federal Court in Florida Orders Joseph Charles DiCrisci to Pay More than $2.9 Million in Disgorgement and a Civil Monetary Penalty for Engaging in Illegal, Off-Exchange Precious Metals Transactions
Court Earlier Entered a Default Judgment Order against His Company, Oakmont Financial, Inc.
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced that Judge William P. Dimitrouleas of the U.S. District Court for the Southern District of Florida entered an Order of Final Judgment by Default (Order) against Defendant Joseph Charles DiCrisci of Henderson, Nevada, an owner and principal of Oakmont Financial Inc. (Oakmont), for engaging in in illegal, off-exchange precious metals transactions (see CFTC Complaint and Press Release 7317-16, February 3, 2016). The Court previously, on November 8, 2016, entered a Default Judgment Order against Oakmont (Oakmont Order).
The Court’s Order requires DiCrisci to pay $735,329 in disgorgement and a $2,205,987 civil monetary penalty. The Order also imposes permanent trading and registration bans against DiCrisci and prohibits him from engaging in illegal, off-exchange precious metals transactions, as charged. Similar prohibitions were entered against Oakmont in the Oakmont Order.
The Court’s Order stems from a CFTC Complaint filed on January 12, 2016 that charged DiCrisci and Oakmont with engaging in illegal, off-exchange precious metals transactions on a leveraged, margined or financed basis. The Complaint also charged Oakmont with acting as a Futures Commission Merchant (FCM), without being registered as such. The Complaint charged, and the Order finds, that DiCrisci was Oakmont’s controlling person who knowingly induced the underlying violation of the Commodity Exchange Act, or failed to act in good faith, and therefore was liable for Oakmont’s violations of the Act.
In the Order, the Court further finds that, from at least July 16, 2011 and continuing through at least July 27, 2012, Oakmont, by and through its employees, solicited retail customers by telephone to engage in financed precious metals transactions, which constitute illegal off-exchange retail commodity transactions and acted as an FCM without being so registered.
The Order also finds that precious metals were never delivered to any customers with respect to the leveraged metals transactions made on behalf of Oakmont’s customers. Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, leveraged, margined or financed transactions, such as those conducted by Oakmont, are illegal off-exchange transactions unless they result in actual delivery within 28 days.
The CFTC cautions that Orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.
CFTC Division of Enforcement staff members responsible for this action are Kara Mucha, Erica Bodin, Kassra Goudarzi, James A. Garcia, Michael Solinsky, Charles Marvine, and Rick Glaser.
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CFTC’s Precious Metals Customer Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Precious Metals Fraud Advisory, which alerts customers to precious metals fraud and lists simple ways to spot precious metals scams.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
Last Updated: February 1, 2017