The U.S. Commodity Futures Trading Commission has filed a civil enforcement complaint in the U.S. District Court for the Southern District of Florida against International Monetary Metals (IMM) of Hollywood, Florida, and its president Martin Sommers of Cooper City, Florida.
The complaint claimed that IMM “solicited and accepted a total of at least $6 million from about 240 retail customers for precious metals transactions.” However the precious metals (including gold, silver and platinum) were never actually delivered to IMM’s customers, according to the CFTC.
“The complaint further alleges that in connection with such transactions, IMM received commissions and fees totaling more than $827,000,” said the CFTC. “In addition, the complaint alleges that IMM accepted customer orders and funds and thus acted as a Futures Commission Merchant without registering the CFTC as such.”
The complaint alleges that IMM conducted the illegal precious metals transactions through Worth Group and AmeriFirst Management. A federal court has entered a consent order of preliminary injunction stopping Worth from violating CFTC regulations and the Commodity Exchange Act by soliciting customers for precious metals investments.
The U.S. District Court for the Southern District of Florida ordered AmeriFirst and three individual defendants to pay more than $25 million in restitution and $10 million in civil monetary penalties.
“In its continuing litigation against IMM and Sommers, the CFTC seeks disgorgement of ill-gotten gains, restitution for the benefit of customers, civil monetary penalties, permanent registration and trading bans, and a permanent injunction from future violations of the CEA [Commodity Exchange Act],” the agency said.