Release: 5239-06

For Release: October 4, 2006

South Florida Court Orders Boca Raton Residents to Disgorge Ill-Gotten Gains from Foreign Currency Options Fraud

Defendants Jeffrey and Tirtza Jedlicki Unjustifiably Received Funds from Defrauded Customers’ Deposits

Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today that the Honorable William P. Dimitrouleas, United States District Court Judge for the Southern District of Florida, ordered relief defendant Jeffrey P. Jedlicki to pay $100,000 in disgorgement and relief defendant Tirtza Jedlicki to pay $16,000 in disgorgement as a result of each receiving payments from customer accounts in a fraudulent foreign currency (forex) options scheme. Relief defendants are charged only with receiving or holding funds from an illegal scheme, and are not charged with liability for the scheme.

The orders, entered on September 28, 2006, resolve charges against relief defendants Tirtza and Jedlicki, both of Boca Raton, Florida, arising from the CFTC’s complaint in CFTC v. Doreen Valko, et al., 06 CV 60001 (S.D. Fla.) (see CFTC Press Release 5204-06, July 24, 2006). The CFTC complaint alleged that defendant International Investments Holdings Corp. (IIHC), a purported Bahamian corporation, actually operated out of south Florida and that its president, Doreen Valko, misappropriated and defrauded approximately 205 retail customers of at least $1.13 million while purportedly trading forex options contracts.

False Customer Statements Were Allegedly Generated to Hide the Scheme

To hide the misappropriation scheme, the complaint alleged, IIHC and defendant Frank DeSantis generated false statements for customer accounts, which confirmed the purported forex options transactions. DeSantis was charged with knowingly aiding and abetting the creation and operation of IIHC by providing consulting and marketing services to both Valko and IIHC, among other things.

The court’s orders find that relief defendants Jeffrey and Tirtza Jedlicki received funds from the defendants that were obtained through fraudulent activities, and for which the relief defendants did not provide any legitimate goods or services in exchange for the payments they received.

The following CFTC Division of Enforcement staff members are responsible for this case: Timothy J. Mulreany, David Reed, Mary Kaminski, Paul Hayeck, and Joan Manley.

Media Contacts
Alan Sobba
202-418-5080

Dennis Holden
202-418-5088
 

Last Updated: July 26, 2007