The US Commodity Futures Trading Commission has obtained more than USD4.3m in civil monetary penalties and equitable relief in an order against Saxon Financial Services of Atlanta, Geor
The US Commodity Futures Trading Commission has obtained more than USD4.3m in civil monetary penalties and equitable relief in an order against Saxon Financial Services of Atlanta, Georgia, charged by the CFTC in 2007 with commodity option fraud.
Judge Julie E. Carnes, Chief Judge of the US District Court for the Northern District of Georgia, entered a final order of judgment requiring Saxon to pay a civil monetary penalty of USD3,289,434 and disgorgement totalling USD1,096,478, plus post-judgment interest. The order also permanently bans Saxon from any commodity-related trading.
The order stems from a CFTC complaint filed on 3 October 2007, which charged Saxon with fraud in connection with off-exchange unleaded gas, heating oil and foreign currency options contracts.
The complaint alleged that Saxon used high-pressure telemarketing sales tactics to solicit customers in Canada and English-speaking countries in Europe to purchase off-exchange options on these commodities. Saxon allegedly promised customers that large profits could be made by following the ‘could not lose’ trading recommendations made by the firm. However, in fact, customers lost virtually all of their invested money trading through Saxon.
