Release: 5761-09
For Release: December 9, 2009

Federal Court Orders New York Resident Dawn Musorofiti to Pay $82,600 in Fines and other Sanctions in CFTC Anti-Fraud Action

Order permanently bans Musorofiti from the futures industry.

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained $82,600 in civil monetary penalties and equitable relief in a federal court consent order against Dawn Musorofiti, of Brooklyn, N.Y. The order also permanently prohibits her from engaging in any activity related to trading any commodity interests, including soliciting funds or registering with the CFTC and trading on behalf of others or herself.

The order, entered on November 12, 2009, by the Honorable Allyne R. Ross, U.S. District Court for the Eastern District of New York, resolves a CFTC enforcement action filed in 2005 that charged Musorofiti with commodity fraud (see CFTC Press Release 5109-05, August 17, 2005).

Specifically, the court’s order requires Musorofiti to pay a $20,000 civil monetary penalty and $62,600 in restitution to defrauded customers. The order finds that, between July, 2003 and September, 2004, Musorofiti solicited funds from customers in her neighborhood to trade commodity futures contracts by making false promises of large profits and no risk of loss. The order also finds that, as part of her fraudulent scheme, Musorofiti pretended to be a broker on the New York Mercantile Exchange to lure her victims into believing that the contracts she was offering were legitimate. However, as the order finds, the contracts Musorofiti sold to her customers were illegal, off-exchange futures contracts.

Musorofiti’s mother, relief defendant Geraldine Musorofiti, ordered to disgorge $62,600 in ill-gotten gains.

In addition, the court ordered Musorofiti’s mother, relief defendant Geraldine Musorofiti, to disgorge $62,600 in ill-gotten gains, which she received as a result of the fraudulent conduct and to which she was not entitled.

The following CFTC Division of Enforcement staff members are responsible for this case: Karin N. Roth, David W. MacGregor, Michael McLaughlin, Lenel Hickson and Vincent McGonagle.

Media Contacts
Scott Schneider
202-418-5080

Dennis Holden
202-418-5088
 

Last Updated: December 9, 2009