The Commodity Futures Trading Commission (CFTC) has outlined a federal consent order regarding an alleged precious metals misappropriation and fraud scheme.
According to the CFTC, U.S. District Court for the District of Delaware Judge Richard G. Andrews entered the consent order against Argent Asset Group LLC (Argent) and First State Depository Company, LLC (FSD) and the court entered an order of default judgment and permanent injunction against Robert Higgins (Higgins).
Per the CFTC, orders allege from approximately January 2014 through October 2022, Higgins, Argent and FSD, acting as a common enterprise, engaged in a fraudulent and deceptive scheme to solicit and misappropriate tens of millions of dollars in funds and silver from approximately 200 customers in connection with a fraudulent silver leasing program known as the Maximus Program.
The orders require the defendants to pay $112,700,000 in restitution to those defrauded and pay a $33 million civil monetary penalty, per officials, adding the orders also enjoin the defendants from further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as charged, and impose permanent trading bans in any CFTC-regulated markets as well as registration bans against the defendants.
“The Commission is resolute in rooting out fraud in the precious metals markets,” CFTC Director of Enforcement Ian McGinley said, indicating the restitution amount demonstrates the CFTC is committed to vindicating victims’ interests.