Monex Allegedly Executed Illegal, Off-exchange Leveraged Commodity Transactions and thus Allegedly Defrauded Thousands of Retail Customers

Monex Deposit Company, Monex Credit Company, and Newport Services Corporation (collectively, Monex), and Monex’s principals Louis Carabini and Michael Carabini allegedly executed illegal, off-exchange leveraged commodity transactions and thus allegedly defrauded thousands of retail customers, according to Reports from the U.S. Commodity Futures Trading Commission (CFTC) currently under review by attorneys Alan Rosca and James Booker.

Peiffer Rosca Wolf securities practice lawyers are investigating Monex’s alleged commodities fraud.

Investors who believe they may have lost money in activity related to Monex’s alleged commodities fraud are encouraged to contact attorneys Alan Rosca or James Booker with any useful information or for a free, no obligation discussion about their options.

Monex and affiliated companies, located in Newport Beach, California, purportedly offers leveraged trading in gold, silver, platinum and palladium to retail customers through its “Atlas” program, the CFTC reports.

Monex, however, allegedly makes deceptive pitches stating that leveraged trading through the Atlas program as a safe, secure and profitable way to invest in precious metals, the CFTC Complaint alleges.

In reality, however, the CFTC reports, almost all individuals who placed leveraged trades in an Atlas account between July of 2011 and March of 2017 allegedly lost money, the Complaint reports.

The U.S. Commodity Futures Trading Commission Claims that Monex is One of the Largest Precious Metals Fraud Cases in the History of the Commission

James McDonald, the CFTC’s Director of Enforcement has made the following statement:

“Today, we announce the filing of one of the largest precious metals fraud cases in the history of the Commission. As alleged, the Defendants defrauded thousands of retail customers—many of whom are elderly—out of hundreds of millions of dollars as part of a multi-year scheme. Fraud in our markets, like that alleged here, undermines confidence, reduces transparency, and harms competition.”

The CFTC Complaint alleges that over 12,000 trading accounts were used to place leveraged precious metals trades resulting in more than $290 million in customer losses between July 16, 2011 and March 31, 2017.

What is more, the CFTC further alleges that in order to push customers into the Atlas program and to generate trades, the Defendants purportedly employed high-pressure sales tactics, systematically downplayed the risks associated with the Atlas program, and falsely promised customers that Monex would act as the customers’ fiduciary and would always act in those customers’ best interests, the Complaint reports.

Securities Lawyers Investigating

The Peiffer Rosca Wolf securities lawyers often represent investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Monex’s alleged commodities. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of Monex’s alleged commodities fraud may contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.