A federal court ordered a California man, Ryan Nassbridges, and his companies, American Bullion Exchange ABEX Corp. and ABEX LLC, to pay a combined $18 million for alleged fraud, misappropriation and registration violations. The Commodity Futures Trading Commision alleged they fraudulently solicited $5.5 million from approximately 80 participants by saying their funds would only be traded in bullion and coins and would be insured against losses. The order found they used funds for trading commodities futures and options, personal expenses and funneling to third parties under their control. They also failed to maintain insurance against loss or inform participants how the money was used.
Copyright © 2014 MarketWatch, Inc.