A U.S. federal court has ordered more than US$3 million in restitution, disgorgement, and monetary penalties against a trio of Canadians in connection with an alleged investment fraud.
The U.S. Commodity Futures Trading Commission (CFTC) announced on Monday that the U.S. district court for the eastern district of Wisconsin entered an order against three Canadians, Ryan Magee, his wife, Dalyne Rae Magee, and his father, David Magee.
The order requires the Magees to jointly disgorge US$715,069 in misappropriated customer funds, and for Ryan Magee to pay restitution of US$1,324,490.
It also imposes a civil monetary penalty of US$840,000 on Ryan Magee, and penalties of US$140,000 each on David and Dalyne Magee.
The trio are also permanently banned from trading or registering with the CFTC.
According to the order, “Ryan falsely told participants, among other things, that he had achieved gains of 100-200% in prior years, and promised annual returns of 200 to 300%, when in reality he had always lost money trading.” It also says that investors were given false account statements that reported non-existent profits.
Monday’s order follows a separate order, which found that from March 2010 to August 2013 Ryan Magee “operated a fraudulent scheme” that solicited at least C$2 million from at least 30 investors in the U.S. and Canada to trade commodity futures and other products on their behalf. It also found that Ryan misappropriated almost C$900,000 and lost at least C$1.36 million trading in a Canadian brokerage account, and US$13,015 in two U.S. accounts.
CFTC charges Canadian with fraud
Last year, the Alberta Securities Commission (ASC) also permanently banned the trio and ordered more than C$1.35 million in fines, disgorgement and costs, in connection with the scheme.
ASC bans three in failed day trading scheme
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