A New York Investment Fraud Lawyer Explains Precious Metals Fraud
Gold, silver, and other precious metals are classified as commodities. The Commodities Futures Trading Commission (CFTC) is the federal agency responsible for regulating markets for commodities trading, commodity options trading, and swaps trading. Securities and commodities laws impose strict rules on the types of statements that can be made involving the trading of commodities as well as on how commodities trading deals must be structured.
If you are accused of precious metals fraud, you can be charged with state crimes or federal crimes depending upon the type of fraud schemes. You need to aggressively defend yourself from any criminal, civil, or regulatory enforcement actions. Commodities laws are complicated and you need to ensure you have an attorney with experience representing clients accused of financial crimes associated with gold investment fraud, silver fraud, and other types of commodities fraud cases.
Bukh Law Firm, PLLC has a long-track record of success in representing white collar criminals in serious financial fraud cases. Our New York City investment fraud lawyers understand the commodities market and the rules and regulations that govern trades and traders. We are here and ready to help you with all of your legal problems when the CFTC or any federal agency is coming after you or when you are being sued by disgruntled investment clients. Give us a call to learn how we can put our legal knowledge of commodities fraud laws to work on your case.
What is Precious Metals Fraud?
Precious metals fraud involves making false or misleading statements in the connection with the sale of commodities or commodities options. Fraud schemes can range from promising clients you will buy and store gold or silver and then embezzling the funds to arranging “loan” agreements in which investors pay only a small percent of the total purchase price for precious metals. It is also common for false promises of high returns and low risks to be made in connection with the sale of precious metals.
The fraud scheme may involve sending marketing materials through the mail or using the Internet to make material misrepresentations about investments in the gold or silver market. Investors are frequently told they can benefit from non-public information or that they should store their gold and silver purchases with the company. It is common for precious metals scams to involve scare tactics about the collapse of the U.S. dollar and about governments seizing gold because of impending civil unrest.
Regardless of the specific form that precious metals fraud takes, the act of fraud can cross into a crime when CFTC regulations are violated; when false statements are knowingly made to potential investors in connection with the sale of a commodity; or when investor funds are misappropriated.
Consequences of Gold Investment Fraud and Silver Fraud
Investors who suffer losses due to gold investment fraud or silver fraud can file civil lawsuits to try to recover compensation for their damages. The CFTC can take enforcement actions and federal and state agencies may launch criminal investigations when precious metals fraud is suspected. When you are under investigation by federal authorities, your financial accounts may be frozen.
You may be charged with a criminal offense under 18 U.S. Code Section 1348, which prohibits the participation in any scheme or artifice that is designed “to defraud a person in connection with any commodity for future delivery, or any option on a commodity for future delivery.” The same code section also prohibits the making of false promises, material misrepresentations, false pretenses, or fraudulent pretenses to obtain either money or property in connection with the purchase or sale of a commodity or commodities options.
When marketing of commodities fraud scams is done through the Internet or via mail, a mail or wire fraud charge may also accompany a commodities fraud charge. Both mail and wire fraud are federal crimes with a possible maximum penalty of 20-30 years incarceration depending upon whether the fraud scam may result in assets being misappropriated from a financial institution.
Anyone involved with any part of perpetrating a gold investment fraud scam or silver fraud scam, including acting as the front-man to sell the products, can be held responsible for all illegal acts taken by co-conspirators. A simple scheme to defraud an investor in gold or silver could result in decades of incarceration.
An Investment Fraud Lawyer Can Help With Accusations of Gold Fraud
An investment fraud lawyer will fight for you if you are facing legal consequences associated with precious metals fraud. Call Bukh Law Firm, PLLC today to understand your rights and get a knowledgeable legal advocate on your side working hard to protect you.
