WEST PALM BEACH, FL (HEDGECO.NET) – A US court has ordered a futures trader to jail, and also fined the second defendant in charges filled by the authorities of the Commodities and ExchangeCommission [CFTC]. According to the Commodities regulator, one futures trader who was accused of defrauding customers was fined; the second individual was jailed for gaining access to fundsmisappropriated in a forex trading scam. Kenneth Lee and his company, KJL Financial Group Inc., were ordered to pay back to customers more than $567,000.
The CFTC filed a law suit in 2002, against Lee and his firm, charging that some investment assets which were solicited from investors were misappropriated in a forex scam. The suit also allegedly said that KJL issued false account statements showing that customers’ accounts were profitable, when in fact the firm was losing money in the trades it entered.
Lee was also fined an additional $300,000, and he was bared along with KJL from trading commodity futures and options, and he could not solicit and receive investment assets for such purpose. Lee neither admitted nor denied the allegations.
There is also the case of Russell Cline of Portland, Oregon, and his firm, Orion International Inc. They were charged with removing frozen assets and according to CFTC, Cline and his associates misappropriated $9 million or more in customer money, using such assets to pursue other personal interests. Clive purchased 24 luxury cars and bought eight homes with investor money according to the charges. The CFTC spokesman said, �Russell Cline of Portland, Oregon, was jailed on March 15 for violating a court order freezing his assets for the protection of defrauded customers�.
The judge ruled that �Cline had removed more than $126,000 in assets frozen after Cline and his firm, Orion International Inc., fraudulently solicited at least $27 million from more than 600 individuals for what CFTC alleged was illegal foreign currency trading�.
Paul Oranika
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HedgeCo.Net
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