Release: 4528-01

For Release: June 20, 2001

OHIO COMMODITY COMPANIES CHARGED WITH
OFFERING PHONY INVESTMENTS

CFTC Alleges that Two Ohio Firms -- International Monetary Group, Inc. and Currency Management Group, Inc. -- and Three Ohio Residents – Anthony Dellarciprete, Emido Dellarciprete, and James Lemmon -- Fraudulently Solicited the Retail Public to Invest in Illegal Foreign Currency Options (FOREX)

WASHINGTON - The Commodity Futures Trading Commission (CFTC) announced today that it filed an action against two Ohio firms and their principals engaged in fraudulent sales and solicitations of foreign currency options (FOREX), and obtained a court order freezing the defendants' assets. On June 18, 2001, the CFTC filed a lawsuit in the United States District Court for the Northern District Of Ohio against International Monetary Group, Inc. (IMG), Currency Management Group, Inc. (CMG), two Ohio FOREX companies, and Anthony and Emido Dellarciprete, the owners and operators of IMG and CMG, and Jason Lemmon, the sales manager for the companies. The complaint charges that during the last five months, the defendants fraudulently solicited and received almost $700,000 from customers -- purportedly to purchase foreign currency options -- but, instead of buying options, the defendants used those funds to pay for personal expenses such as food and entertainment, automobiles, and home improvement projects.

CFTC Further Alleges that the Defendants Made False Claims about Profitability and Risks

The complaint also alleges that the defendants’ solicited investors by exaggerating claims of profits and minimizing the risk of loss associated with investing in foreign currency options.

On June 18, 2001, the Honorable Dan A. Polster entered an order freezing defendants' assets. The order likewise prohibits the destruction of documents, and appoints a receiver to implement the court's ruling.

In its complaint, the CFTC is seeking preliminary and permanent injunctive relief, restitution for defrauded customers, and disgorgement of ill-gotten gains. A hearing on the CFTC's motion seeking a preliminary injunction is scheduled for June 27, 2001, at 3pm.

Serving as local counsel for the CFTC, the United States Attorneys Office for the Northern District of Ohio assisted in filing this action.

CFTC Issued a Consumer Advisory Warning the Public of the Risks of Foreign Currency Scams

This action, as well as the issuance of a Consumer Advisory, is part of the Commission's aggressive effort against retail FOREX fraud in the wake of Congress's recent clarification of the CFTC's jurisdiction in this area. The action follows three others filed in April alleging fraudulent foreign currency activity (see CFTC News Release 4513-01, May 2, 2001 and see CFTC Consumer Advisories).

The Consumer Advisory urges the public to scrutinize claims of high-return, low-risk investment opportunities in foreign currency trading. The Consumer Advisory provides "red flags" to look for, and cautionary steps consumers should take before making investments. The CFTC also issued an Advisory on how FOREX firms may lawfully offer foreign currency futures and options trading opportunities to the retail public (see CFTC Advisory 06-01, February 5, 2001).

# # #