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of lying to hinder an investigation by the FBI and the U.S. attorney's office, by making
numerous false statements to investigators on behalf of the Audit Committee of
Beazer's Board of Directors.
October 27, U.S. Commodity Futures Trading Commission
– (North Carolina) North
Carolina federal court orders Rodney W. Whitney, Nicholas T. Cox, and Integra
Capital Management, LLC, to pay over $6.9 million for Ponzi scheme. The U.S.
Commodity Futures Trading Commission (CFTC) October 27 announced it obtained
federal court orders requiring two men and Integra Capital Management, LLC (Integra)
to pay more than $6.9 million in restitution, disgorgement, and civil monetary
penalties. The orders found they defrauded investors in a commodity pool Ponzi
scheme involving commodity futures and off-exchange foreign currency transactions.
The orders stem from a CFTC complaint filed in September 2010, charging the men
and Integra with fraud and misappropriation in connection with the scheme. The orders
require one of the men and Integra jointly and severally to pay restitution of
$2,185,063, disgorgement of $1,198,316, and a civil monetary penalty of $3,594,948,
and require the other man to pay restitution of $2,185,063, and a $2,185,063 civil
monetary penalty. The orders provide for a dollar-for-dollar credit for the men and
Integra for any restitution or civil monetary penalty payments paid by the other party.
The orders also permanently prohibit the men and Integra from engaging in any
commodity-related activity, including trading, and from registering or seeking
exemption from registration with the CFTC. A judge found that, beginning in or about
September 2006 and continuing through at least August 2009, the men and Integra
violated the anti-fraud provisions of the Commodity Exchange Act by misrepresenting
Integra’s trading performance and by misappropriating pool participants’ funds, among
October 27, U.S. Department of Treasury
– (International) Treasury targets Sinaloa
Cartel narcotics distribution network under the Kingpin Act. The U.S. Department
of the Treasury’s Office of Foreign Assets Control (OFAC) October 27 announced the
designation of a key Sinaloa Cartel lieutenant, his two brothers, and two companies
located in Mexico pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin
Act). The lieutenant controls a money laundering and narcotics distribution network
based in Culiacan, Mexico, that is supplied by the Sinaloa Cartel leader and facilitates
the importation of narcotics from Mexico into the U.S. with the assistance of his
brothers. The leader and the Sinaloa Cartel were previously identified by the U.S.
President as significant foreign narcotics traffickers pursuant to the Kingpin Act in
2002 and 2009. Treasury also designated Autos Mini, a car dealership in Ensenada,
Baja California, and Autodromo Culiacan, an auto race track lin Culiacan, Sinaloa,
owned by the lieutenant and his brother. As a result of the action, U.S. persons are
prohibited from engaging in transactions with the designees, and any assets they may
have under U.S. jurisdiction are frozen.
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