Government Enforcement Actions

January 26, 2015

Lindsey Duncan, Pure Health LLC, and Genesis Today, Inc. have agreed to settle FTC charges that they deceptively touted the supposed weight-loss benefits of green coffee bean extract through a campaign that included appearances on The Dr. Oz Show, The View, and other television programs. Under the settlement, the defendants are barred from making deceptive claims about the health benefits or efficacy of any dietary supplement or drug product, and will pay $9 million for consumer redress. “Lindsey Duncan and his companies made millions by falsely claiming that green coffee bean supplements cause significant and rapid weight loss,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “This case shows that the Federal Trade Commission will continue to fight deceptive marketers’ attempts to prey on consumers trying to improve their health.” FTC

January 26, 2015

The CFTC ordered Anthony Lauria and his company, Gold Coast Bullion, Inc. to pay more than $9.6 million to settle charges of engaging in an illegal, off-exchange precious metals scheme and for committing fraud in connection with those illegal transactions.  CFTC

January 22, 2015

Ohio Attorney General Mike DeWine announced a settlement with northwest Ohio residents who allegedly used their charity, most recently known as Defining Vision Ministries Inc. and previously known as Focus Up Ministries, to solicit funds for an alleged international pyramid scheme called Profitable Sunrise.

January 22, 2015

Pennsylvania Attorney General Kathleen G. Kane announced the arrest of Claire Risoldi of Bucks County and four members of her family who allegedly conspired to defraud insurance companies in excess of $20M to live an “excessively extravagant lifestyle.” PA

January 21, 2015

A New York federal court has ordered Michael Kardonick, Gary Shapoff, and Atwood & James to pay a penalty of over $2 million and has imposed a permanent trading ban over allegations of Forex options fraud and misappropriation.  CFTC

January 21, 2015

Bharat Adatia and his companies, Lions Wealth Holdings, Lions Wealth Services, and 20/20 Precious Metals have been ordered to pay over $5.3 million in sanctions for an alleged fraudulent precious metals scheme.  CFTC

January 21, 2015

New York Attorney General Eric T. Schneiderman joined the SEC and the office of the Massachusetts Attorney General in announcing a settlement with Standard and Poor’s Financial Services LLC regarding false and misleading statements made by S&P in connection with its rating of certain Commercial Mortgage Backed Securities (CMBS). According to the government, from February 2011 to July 2011, S&P loosened the criteria it applied to rate eight CMBS, failed to disclose this fact to investors, and misled market participants into thinking the ratings for their investments were based on more conservative assumptions than was actually the case. Under the settlement, New York will receive $12M in penalties, Massachussetts will receive $7M in penalties, and the SEC will receive $35M in penalties as well as $7M in disgorgement and interest. The SEC also resolved two other matters related to S&P bringing the total government recovery to nearly $80M. NY

January 21, 2015

New York Attorney General Eric T. Schneiderman announced a settlement with Florida-based Vacation Tours USA, Inc., and its principals Henry J. Armand and Tony J. Armand, over a false advertising scam targeting consumers across New York State. According to the government, the company sent letters to consumers telling them they had won a vacation package, including airfare and lodging, and invited them to attend a seminar at a local hotel but once there were subjected to a sales presentation conducted by a third-party company instead of being given vouchers for free airline tickets and hotel stays. Under the settlement, the company must halt its deceptive, fraudulent, and illegal business practices in New York State, pay restitution to consumers, and pay $22,500 in civil penalties and costs. NY

January 20, 2015

Focus Education, a Texas company that makes a computer game, Jungle Rangers, settled FTC charges that require them to stop making unsubstantiated claims that the game permanently improves children’s focus, memory, attention, behavior, and school performance, including for children with attention deficit hyperactivity disorder (ADHD). “This case is the most recent example of the FTC’s efforts to ensure that advertisements for cognitive products, especially those marketed for children, are true and supported by evidence,” said Jessica Rich, Director of the Bureau of Consumer Protection. “Many parents are interested in products that can improve their children’s focus, behavior, and grades, but companies must back up their brain training claims with reliable science.” FTC

January 20, 2015

The CFTC settled charges against Singapore-based Olam International, Ltd., which operates a futures trading desk in London, and its subsidiary, Olam Americas, Inc., based in Summit, New Jersey, requiring them to pay a $3 million civil monetary penalty.  CFTC