Release: 5066-05
For Release: April 12, 2005

U.S. DISTRICT COURT ISSUES ORDER REQUIRING FLORIDA RESIDENTS WILLIAM A. FOLINO, GEORGE BELANGER AND INVESTORS FREEDOM CLUB LC TO PAY OVER $2 MILLION IN RESTITUTION IN FOREX COMMODITY SCAM

William Folino Also Ordered To Pay Up To $2.3 Million In Civil Penalties

WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) announced today that on March 30, 2005, the Honorable Elizabeth A. Kovachevich, U.S. District Judge for the Middle District of Florida, issued an order requiring defendants Investors Freedom Club LC (IFC), William A. Folino and George Belanger to pay restitution to defrauded customers in the amount of $2,316,859. The court also ordered payment of civil penalties. Also on April 4, 2005, the court issued a further order that enjoins the defendants from further violations of the federal commodity laws and permanently prohibits them from trading commodity futures contracts.

The March 30 and April 4, 2005, orders represent the final judgment in a civil injunctive action the CFTC filed on January 13, 2003, CFTC v. Investors Freedom Club LC, William A. Folino and George Belanger, Civil Action No. 8:03-CV-54 (See CFTC News Release 4742-03, January 23, 2003), and establish sanctions for findings of violation that were the subject of an April 8, 2004, order of the court. In that order, the court found that, as charged, the defendants sold illegal off-exchange foreign currency (forex) futures contracts to the retail public through an Internet website. The order also found that defendants IFC and Folino solicited customers to trade forex using misrepresentations about the likelihood of profits, the risk involved in such trading, and the trading record of IFC. According to that order, IFC and Folino, rather than trade all of the customers’ funds, instead misappropriated them for Folino’s personal expenses.

The court’s March 30, 2005, order requires Belanger to pay a civil monetary penalty of $120,000 and Folino to pay a civil monetary penalty of $2,316,859, which could be reduced if Folino pays restitution within the first two years after the issuance of the order. The order also requires William Folino’s wife, Tina Folino, to disgorge $378,894 in ill-gotten gains. As a relief defendant, she was charged with receiving customer funds to which she was not entitled, but she was not charged with participation in the violations themselves.

The following CFTC Division of Enforcement staff members were responsible for this case: Christine Ryall, Peter Haas, and Ken Koh.

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Media Contacts
Alan Sobba
(202) 418-5080
Dennis Holden
(202) 418-5088
CFTC Office of External Affairs

Staff Contact
Paul G. Hayeck
Associate Director
CFTC Division of Enforcement
(202) 418-5312

Related Documents
March 30 Order
April 4 Order
April 8 Order