American Derivatives Settles CFTC Suit For $6.8M

Law360, New York (December 16, 2009, 2:30 PM EST) -- A federal judge has signed off on a consent decree filed by the U.S. Commodity Futures Trading Commission and American Derivatives Corp. in which the broker agreed to pay $6.75 million over allegations of a commodity options fraud scheme.

Judge Richard W. Story of the U.S. District Court for the Northern District of Georgia entered the order Tuesday, resolving the CFTC's accusations that the firm fraudulently induces customers to purchase options on commodity futures contracts.

The order requires the defendants — including American Derivatives, the firm's...
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