Three Palm Beach County companies were part of a scheme that used hefty commissions and steep fees to defraud hundreds of speculators in precious metals of $46 million, federal regulators say.
In a suit filed in federal court in West Palm Beach, the U.S. Commodity Futures Trading Commission said the firms charged customers interest on loans that were never made and pocketed storage and insurance fees on phantom metals. U.S. District Judge Donald Middlebrooks this week ordered that the companies stop selling the investments to retail customers.
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