Sun Platinum pays $40 million penalty
The Commodity Futures Trading Commission (CFTC) had charged the firm in September with fraud for misappropriating customer funds.
The CFTC said that between February 2003 and September 2003 the firm defrauded more than 400 customers by misappropriating more than $16 million from them, purportedly to speculate in foreign exchange on their behalf.
Instead, said the CFTC, over $4 million was transferred to offshore bank accounts. "No funds were transferred back into the Sun Platinum operating account from any relief defendant, bank clearing house or other designated contract facility that would indicate the existence of actual trading," the CFTC said.
The firm was also charged with trading illegal, off-exchange forex futures contracts.
Sun Platinum and defendant Eduard Dmanskiy were ordered to pay over $10 million to former customers and more than $30 million in civil penalties.
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