The US Commodity Futures Trading Commission has obtained a preliminary injunction against defendant Ronald W. Smith, Jr., doing business as Safeguard 3030 Investment Club, of Vansant, Virginia, after a federal court held at hearing where the defendant also appeared.
The order, arising from a CFTC anti-fraud enforcement action against Smith filed on 23 February 2010, continues the asset freeze the court entered against Smith at the outset of the CFTC’s action.
The order also prohibits Smith from further violations of federal commodities law.
The CFTC’s complaint charges Smith with fraudulently soliciting at least USD800,000 from customers and misappropriating customer funds in an off-exchange foreign currency scam.
The complaint also charges Smith with issuing false statements to customers to conceal the fraudulent misuse of funds.
In its continuing litigation against Smith, the CFTC seeks restitution, disgorgement of ill-gotten gains, civil monetary penalties and a permanent injunction.
