The following is from the CFTC...
The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a federal court Order against Defendants Madison Dean, Inc. (Madison Dean), of Wantagh, N.Y., and its principal, George Athanasatos, also of Wantagh, requiring them jointly to pay nearly $250,000 in restitution to defrauded customers. The Consent Order of Permanent Injunction, entered by Judge Joseph F. Bianco of the U.S. District Court for the Eastern District of New York, also imposes a $1 million civil monetary penalty on Madison Dean and a penalty of $210,000 on Athanasatos. The Order imposes permanent trading and registration bans against both defendants and prohibits them from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.
The Order stems from a CFTC Complaint filed on May 8, 2012, charging Madison Dean, Athanasatos, and another Madison Dean principal, Laurence Dodge of Fresh Meadows, N.Y., with fraudulently soliciting approximately 19 persons to invest approximately $415,000 in managed trading accounts to trade off-exchange foreign currency (forex) contracts on a leverage or margined basis (see CFTC Press Release 6254-12).
The Order finds that Madison Dean and Athanasatos — through an internet website, written solicitation materials, and oral solicitations — misrepresented and omitted material facts about the history of Madison Dean, the performance record of Madison Dean, the nature of the Madison Dean’s clients, and the background and qualifications of the Madison Dean’s employees to create a false impression that Madison Dean was a well-established and successful company. The Order further finds that after being in operation for a little over one year — during which time customers lost approximately $250,000 and Madison Dean collected approximately $112,000 in commissions and fees — Madison Dean shut down its operation with no notice to its customers and no way for customers to contact the company or any of its associates.
The CFTC’s litigation continues against Defendant Laurence Dodge.
The CFTC appreciates the assistance of the United Kingdom’s Financial Services Authority in this matter.
CFTC Division of Enforcement staff members responsible for this case are Alan I. Edelman, James H. Holl, III, Michelle Bougas, Gretchen L. Lowe, and Vincent McGonagle.