SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16324 / October 1, 1999
SEC SUES THIRD SOUTH FLORIDA FOREIGN CURRENCY TRADING FIRM AND ITS PRESIDENT; ALLEGES INVESTORS DEFRAUDED
Securities and Exchange Commission v. Anthony Baldwin and Global Currency Management, Inc., Civil Action No. 99-2621-CIV-Moreno (S.D. Florida, Miami Division) (complaint filed September 30, 1999)
On September 30, 1999, the Securities and Exchange Commission ("SEC") filed a complaint and consent to permanent injunction in a fraud case involving a Miami company, Global Currency Management, Inc. ("GCM") and its president, Anthony Baldwin ("Baldwin"). Without admitting or denying the SEC's allegations, GCM and Baldwin consented to the entry of a permanent injunction against future violations of the antifraud provisions of the federal securities laws.
In its complaint, the SEC alleges that Baldwin attracted investors to GCM's foreign currency trading program by representing in promotional material that, as GCM's trader, he had a record of consistently profitable returns, averaging, according to Baldwin, almost 5% monthly in his foreign currency trading. Investors were also provided monthly account statements which falsely depicted the GCM investment as safe and profitable. In fact, at the time of these representations, Baldwin had already lost in trading virtually all of the investors' money. The SEC also alleges that the defendants falsely described Baldwin's education, and falsely claimed that a well known financial publication had recognized Baldwin's purported trading success.
According to the SEC, GCM and Baldwin raised more than $1 million from investors. In their settlement with the SEC, Baldwin and GCM agreed to pay, jointly and severally, disgorgement in the amount of $411,181, plus prejudgment interest. However, the SEC waived payment by the defendants of disgorgement and a civil penalty based upon the defendants' demonstrated inability to pay. The final judgment also permanently enjoins Baldwin and GCM from violating Sections 17(a)(1), (2) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934.
Another South Florida foreign currency company with which Baldwin was previously associated, International Capital Management, Inc. ("ICM"), was enjoined in an action for emergency relief brought by the SEC last September. In that action, the SEC alleged that ICM had defrauded investors of more than $18 million. The SEC also sued another South Florida firm, Unique Financial Concepts, Inc., last fall in connection with a similar foreign currency trading scheme.
The SEC would like to acknowledge the valuable assistance of the Florida Office of the Comptroller in this investigation.http://www.sec.gov/litigation/litreleases/lr16324.htm