South Florida Precious Metals Fraud Attorney, Russell L. Forkey
The Commodity Futures Trading Commission periodically announces enforcement actions that have recently been filed by it. One such case is referenced below. The Law Firm of Russell L. Forkey, P.A. had already filed two actions against American Precious Metals, LLC and certain of the individuals referenced below. For further information, please follow Read More.
May 17, 2011
CFTC Charges Florida Firm, American Precious Metals, LLC, and Principals, Sammy J. Goldman and Harry Robert Tanner, Jr., with Fraud
American Precious Metals, allegedly a boiler room telemarketing firm, purportedly purchased more than $23 million of precious metals for customers of their leveraged precious metals purchase program, but allegedly never purchased any metal for customers.
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it charged precious metals firm American Precious Metals, LLC (APM) of Deerfield Beach, Fla., and its founders and principals, Sammy J. Goldman of Delray Beach, Fla., and Harry Robert Tanner, Jr. of Lake Worth, Fla., with fraud in connection with offering, purchasing, selling or delivering gold, silver, platinum and palladium to U.S. retail customers on a leveraged basis. The CFTC's lawsuit also alleges that the defendants violated the Commodity Exchange Act's prohibition against selling palladium to customers on a leveraged basis. APM has never been registered with the CFTC.
The CFTC complaint was filed under seal on May 10, 2011, in the U.S. District Court for the Southern District of Florida. Specifically, the complaint alleges that the defendants "engaged in a massive fraudulent scheme" and, from at least July 1, 2007, APM, through its agents and employees, acting at the direction of Tanner and Goldman, purportedly purchased more than $23 million of precious metals for customers in their "leverage program." The program allegedly requires customers to make a down payment of as little as $5,000 to APM for certain quantities of physical precious metals. APM also allegedly claims to finance up to 80 percent of customers' purchases and store customers' physical metals in a secure depository.
According to the complaint, these statements are false. In reality, APM allegedly does not purchase or sell any precious metals for customers, does not arrange loans for customers to purchase physical metals and does not arrange for storage in any depository. Instead, after charging customers commissions of approximately 40 percent of their initial investment, APM allegedly pools the remaining funds and sends a portion of that money to a third party. The third party does not purchase any physical precious metals, provide loans or arrange for metals storage on behalf of any APM customer, according to the complaint.
The complaint also charges APM with making misrepresentations and omissions of material fact related to the profitability of and risks associated with the leverage program.
In its continuing litigation, the CFTC seeks preliminary and permanent injunction orders against the defendants, disgorgement of ill-gotten gains, civil monetary penalties and trading and registration bans.
Both the CFTC and the Federal Trade Commission have filed federal actions, in the United States District Court for the Southern District of Florida, against American Precious Metals, LLC. and certain individuals allegedly associated with the company. If you would like to view a copy of the complaint filed by the CFTC, please follow this link. If you would wish to see a copy of the complaint filed by the Federal Trade Commission, please follow this link.
For updates concerning this CFTC and the FTC matters, please follow the "Update" link. We have included in the "update" section, a copy of the Stipulated Preliminary Injunction entered by the district court. If you have any questions concerning any of this information, please call the law office of Russell L. Forkey, Esq.
