Release: 5109-05
For Release: August 17, 2005

U.S. COMMODITY FUTURES TRADING COMMISSION SUES FORMER BROOKLYN RESIDENT DAWN MUSOROFITI FOR COMMODITIES FRAUD

CFTC Alleges That Musorofiti Defrauded Customers By Promising Large Profits Without Risk and Pretending to Be a New York Mercantile Exchange Broker

WASHINGTON, D.C. – The United States Commodity Futures Trading Commission (CFTC) announced today the filing of an enforcement action in the United States District Court for the Eastern District of New York, alleging that former Brooklyn resident Dawn Musorofiti defrauded customers by offering them purported interests in exchange-traded commodity futures that she did not own.

Specifically, the CFTC complaint alleges that, between July 2003 and September 2004, Musorofiti solicited approximately $90,000 from at least five customers in the New York area to trade commodity futures contracts by making false promises of large profits and no risk of loss for their investments. The complaint also alleges that as part of her fraudulent scheme, Musorofiti pretended to be a broker on the New York Mercantile Exchange in an effort to lure her victims into believing that the contracts she was offering were legitimate. According to the complaint, the contracts Musorofiti sold to her customers were instead illegal, off-exchange futures contracts.

The complaint also charges Musorofiti’s mother, Geraldine Musorofiti, as a Relief Defendant for having collected money Musorofiti swindled from her victims. Relief defendants are charged only with receiving money to which they were not entitled; they are not charged with the violations of law in the underlying scheme.

The CFTC is seeking a permanent injunction against Musorofiti, repayment to defrauded customers, the return of ill-gotten gains, and monetary penalties for violations of the Commodity Exchange Act.

The following CFTC Division of Enforcement staff members are responsible for this case: Gregory Compa, Michael McLaughlin, David W. MacGregor, Lenel Hickson, Stephen J. Obie, and Richard Wagner.

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The CFTC encourages members of the public to bring to our attention any suspicious activities involving futures or commodity options, including matters involving foreign currency (forex) investments or suspicious internet websites.

You may contact the CFTC at 1-866-FON-CFTC (1-866-366-2382) visit us at our Customer Protection web page: (www.cftc.gov/cftc/cftccustomer.htm), or fill out our Internet Report Form identifying your concerns (www.cftc.gov/enf/enfform.htm).

In addition, the CFTC publishes a series of Consumer Advisories at http://www.cftc.gov/cftc/cftccustomer.htm#advisory alerting the public to warning signs of possible fraudulent activity and offering precautions individuals should take before committing funds.

Media Contacts
Alan Sobba
(202) 418-5080
Dennis Holden
(202) 418-5088
CFTC Office of External Affairs, Washington, D.C.

Staff Contact
Stephen Obie
Regional Counsel and Associate Director
CFTC Division of Enforcement
646-746-9766

Related Document
Complaint