Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that on November 22, 2010, it obtained consent preliminary injunction orders against defendants Ronald E. Satterfield of Charleston, S.C., his South Carolina-based companies, Graham Street Forex Group, LLC and Shore-2-Summit Financial, LLC, Nicholas Bos of Ludington, Mich., and relief defendant Patricia L. Bos.
The consent orders, entered by the Honorable Richard M. Gergel of the U.S. District Court for South Carolina, stem from a CFTC complaint filed on November 8, 2010 (see CFTC Press Release 5935-10, November 15, 2010). The CFTC complaint charges that the defendants operated a foreign currency (forex) Ponzi scheme that fraudulently solicited more than $3.3 million from more than 70 individuals in South Carolina, North Carolina, Michigan and Maryland. The defendants also allegedly misappropriated a significant portion of customer funds for their personal use. The complaint charges that, to conceal and perpetuate their fraud, Satterfield and Bos issued false customer account statements reflecting the returns promised to customers and forex trading profits, when in fact Satterfield’s forex trading resulted in losses almost every month.
The complaint names Bos’ wife, Patricia Bos, as a relief defendant, because she allegedly received funds as a result of the defendants’ fraudulent conduct and has no legitimate entitlement to those funds. According to the complaint, defendant Bos allegedly used $295,000 of customer funds to purchase a personal residence in Michigan, which was titled in the names of Nicholas and Patricia Bos.
The court’s preliminary injunction orders continue the provisions of the court’s ex parte restraining order of November 9, 2010, prohibiting defendants and relief defendant from destroying books and records or transferring or dissipating assets and requiring defendants to account for assets. The orders also prohibit the defendants from trading, soliciting orders, committing fraud or engaging in business activity related to contracts or transactions regulated by the CFTC.
In its continuing litigation, the CFTC seeks rescission of all contracts and agreements, restitution to defrauded customers, a return of ill-gotten gains, civil monetary penalties, permanent registration bans and permanent injunctions prohibiting trading and further violations of the federal commodities laws.
CFTC Division of Enforcement staff members responsible for this case are Jennifer Diamantis, Patricia Gomersall, Christine Ryall, Paul G. Hayeck and Joan Manley.