Articles Posted in Precious Metals

United States Commodity Futures Trading Commission v. Hunter Wise Commodities, LLC., Hunter Wise Services, LLC., Hunter Wise Credit, LLC., Hunter Wise Trading, LLC., Lloyds Commodities, LLC., Lloyds Commodities Credit Company, LLC., Lloyds Services, LLC., C.D. Hopkins Financial, LLC., Hard Asset Lending Group, Blackstone Metals Group, LLC., Newbridge Alliance, Inc., and United States Capital Trust, LLC., et. al (Case No. 12-81311-CIV-Middlebrooks, United States District Court for the Southern District of Florida).

As we advised in an earlier post, the Commodity Futures Trading Commission had instituted an action against, among others, the above named parties, which, at the time of filing, included a Motion for Preliminary Injunction, which was filed on December 6, 2012.

On Feburary 22, 2013, the Court held a hearing on the motion.  At the hearing, the Court found that the motion was due to be granted.  At the conclustion of the hearing, the parties that were present requested that, given the expediency required under the circumstances and the potential harm to the Defendants by the appointment of a receiver, that, at least for the present, the Court appoint a Special Monitor in lieu of a receiver.  This request was approved by the Court. 

Precious Metals Fraud and Misrepresentation:

CFTC Charges Hunter Wise Commodities, Lloyds Commodities, C.D. Hopkins Financial, United States Capital Trust, Newbridge Alliance, Blackstone Metals Group, and their Principals in Multi-Million Dollar Fraudulent Precious Metals Scheme

CFTC alleges that defendants conducted illegal, off-exchange commodity transactions, and deceived customers in connection with financed transactions in precious metals

Securities and Exchange Commission v. A.L. Waters Capital, LLC, et al., Civil Action No. 12-cv-10783-DJC (District of Massachusetts)

United States of America v. Arnett L. Waters, Criminal No. 12-cr-10336-DJC (District of Massachusetts)

Defendant in SEC Action Charged by United States Attorney’s Office for the District of Massachusetts

Securities and Exchange Commission v. 3 Eagles Research & Development LLC, Harry Dean Proudfoot III, Matthew Dale Proudfoot, Laurie Anne Vrvilo and Dennis Ashley Bukantis, Civil Case No. 3:12-cv-01289-ST (D. Oregon, filed July 17, 2012)

SEC Charges Family-Run Business Promising Investors Stake in Purported $11 Billion Gold Mine

July, 2012:

Precious Metals Boiler Rooms:

Historically, “Boiler Rooms” were associated with securities and commodity futures trading.  Generally, a “boiler room” is defined as a place where high-pressure salespeople use banks of telephones to “cold” call lists of potential investors (known in the trade as sucker lists) in order to peddle speculative, even fraudulent investments.  Generally, as part of the sales pitch, the caller initially relies on sales scripts based upon false and misleading information.  If that does not work, it is not uncommon for the sales person to just make facts up with no knowledge as to whether what is being said is in fact true.

This post is being provided for education purposes only.  It is not designed to be complete in all material respects.  Thus, you should not rely upon this post as providing legal or investment advice.  If you have any questions, you should contact a qualified professional.  

The Goldline International Customer Agreement:

As indicated in an earlier Goldline International blog, a case seeking class action certification was filed in the United States District Court for the District of South Carolina, Greenville Division styled Tim Clark; Johanna Clougherty; Michael Clougherty; on behalf of themselves and all other similarly situated v. Goldline International, Inc., case no. 6:10-Civ-01884. The basis of the complaint is set forth in an earlier blog. The alleged underlying facts do not have a bearing on the importance of the court’s ruling on Goldline International’s Motion to Dismiss or Stay Proceedings and Compel Arbitration, which was granted. What the court’s order does demonstrate are the perils and risks of not only dealing with Goldline International but how far some firms will go to protect themselves and disadvantage their customers for their alleged wrongdoing.

The first issue or importance that was discussed by the court related to arbitration. Goldline International requires its clients to “read” and sign an Account and Storage Agreement (Account Agreement), which contains an Arbitration Agreement. Paragraph K of the Account Agreement states as follows:

NASAA Cautions Investors Mining for Golden Opportunities:

WASHINGTON (October 20, 2010) – With gold prices reaching record highs, investors are increasingly turning to gold-related investments. The North American Securities Administrators Association (NASAA) today reminded investors to be cautious about jumping onto the gold bandwagon.

“The soaring price of gold has sparked a modern-day gold rush among investors eager to recover stock market losses. But it’s still a Wild West out there and dangers abound for prospective gold investors,” said David Massey, NASAA President and North Carolina Deputy Securities Administrator.

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