|CFTC Seal
       Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | CFTC Seal                                                                                                                                                                                                                                                                   | Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581
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|CFTC Seal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581                                                                          
|Release: 5050-05For Release: February 18, 2005
  U.S. COMMODITY FUTURES TRADING COMMISSION AND OTHER FEDERAL AUTHORITIES COOPERATE
   TO SHUT DOWN NEW YORK FOREIGN CURRENCY (FOREX) BOILER ROOM OPERATION
  CFTC CHARGES RICHMOND GLOBAL ENTITIES OF STATEN ISLAND, NEW YORK AND FOUR
   INDIVIDUALS WITH DEFRAUDING 160 CUSTOMERS OF MILLIONS OF DOLLARS IN FOREX SCHEME
  CFTC Assisted U.S. Attorney’s Office for the Southern District of New York
   and the Federal Bureau of Investigation
  WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC)
   announced today that it filed a complaint in federal district court against defendants
   Richmond Global Associates, LLC; Richmond Global Director LLC; Richmond
   Global MCA, LLC; Richmond Global Managed Account, LLC; Richmond Global,
   Ltd.; and RG Group Holdings, LLC (collectively, Richmond Global Entities),
   as well as Vincenzo Danio, Joseph Pappalardo, Ronald Turner and
   Miron Vinokur, all of Staten Island, New York, for allegedly defrauding
   customers in the solicitation and trading of forex contracts that were in fact futures
   contracts.
  On the same day the complaint was filed, U.S. District Court Judge Shira Scheindlin of
   the Southern District of New York issued a restraining order freezing the assets of
   the Richmond Global Entities, Danio, Pappalardo, Turner, and Vinokur. The restraining
   order also prohibits the defendants from destroying documents. The filing was the
   result of coordinated investigations by the CFTC and federal criminal authorities that
   led to the arrests yesterday of the individual defendants in this case.
  The complaint alleges that, starting in December 2001, the defendants fraudulently
   solicited at least $3.5 million dollars from at least 160 retail customers for the
   purpose of trading forex contracts. The complaint further alleges that during these
   solicitations, the defendants made false promises of high returns, failed to disclose
   hidden commission charges, issued account statements that falsely characterized the
   undisclosed commissions as trading losses, made false representations regarding the
   risk of forex trading as well as their experience and past performance in trading
   forex, and misappropriated customer funds.
  In the ongoing litigation, the CFTC is seeking preliminary and permanent injunctive
   relief, a return of funds to defrauded customers, monetary penalties, and repayment of
   ill-gotten gains.
  The CFTC’s injunctive action is the result of a cooperative civil and criminal
   investigation by the CFTC, the U.S. Attorney’s Office for the Southern District
   of New York, and the Federal Bureau of Investigation.
  CFTC Acting Chairman Sharon Brown-Hruska stated:
  “As demonstrated by today’s filing, one of the objectives of the
   Commission remains the vigorous prosecution of retail forex fraud. Our Division of
   Enforcement will continue to use the tools in our statute to prove that fraudsters
   like those charged today are engaging in illegal acts. I applaud the efforts of the
   Commission’s enforcement staff in bringing today’s action, as well as the
   law enforcement officers of the FBI and the U.S. Attorney’s Office, with whom
   they have cooperated closely.”
  Gregory Mocek, CFTC Enforcement Director stated:
  “The rampant proliferation of forex boiler rooms that prey on unsuspecting
   Americans is a focus of the CFTC’s enforcement program. Whenever possible, we
   will partner with criminal authorities to eliminate this unscrupulous activity and
   protect market participants who fall victim to these schemes.”
  The following Commission staff members are responsible for this case: Michael
   Berlowitz, Ronald Carletta, Angelina Guiriba, Sheila Marhamati, Michael C. McLaughlin,
   Karin N. Roth, Philip Rix, David W. MacGregor, Steven Ringer, Lenel Hickson, Jr.,
   Stephen J. Obie, and Richard Wagner.
  # # # | Media Contact
   Dennis Holden
   CFTC Office of External Affairs
   202-418-5088 or 5080
  Staff Contact
   Stephen Obie
   Regional Counsel and Associate Director
   CFTC Division of Enforcement
   646-746-9766
  Related DocumentsComplaintRestraining Order