SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16324 / October 1, 1999
SEC SUES THIRD SOUTH FLORIDA FOREIGN CURRENCY TRADING FIRM AND ITS
PRESIDENT; ALLEGES INVESTORS DEFRAUDED
Civil Action No. 99-2621-CIV-Moreno (S.D. Florida, Miami Division)
(complaint filed September 30, 1999)
On September 30, 1999, the Securities and Exchange Commission ("SEC")
filed a complaint and consent to permanent injunction in a fraud case
involving a Miami company, Global Currency Management, Inc. ("GCM")
and its president, Anthony Baldwin ("Baldwin"). Without admitting or
denying the SEC's allegations, GCM and Baldwin consented to the entry
of a permanent injunction against future violations of the antifraud
provisions of the federal securities laws.
In its complaint, the SEC alleges that Baldwin attracted investors to
GCM's foreign currency trading program by representing in promotional
material that, as GCM's trader, he had a record of consistently
profitable returns, averaging, according to Baldwin, almost 5% monthly
in his foreign currency trading. Investors were also provided monthly
account statements which falsely depicted the GCM investment as safe
and profitable. In fact, at the time of these representations, Baldwin
had already lost in trading virtually all of the investors' money. The
SEC also alleges that the defendants falsely described Baldwin's
education, and falsely claimed that a well known financial publication
had recognized Baldwin's purported trading success.
According to the SEC, GCM and Baldwin raised more than $1 million from
investors. In their settlement with the SEC, Baldwin and GCM agreed to
pay, jointly and severally, disgorgement in the amount of $411,181,
plus prejudgment interest. However, the SEC waived payment by the
defendants of disgorgement and a civil penalty based upon the
defendants' demonstrated inability to pay. The final judgment also
permanently enjoins Baldwin and GCM from violating Sections 17(a)(1),
(2) and (3) of the Securities Act of 1933 and Section 10(b) of the
Securities Exchange Act of 1934.
Another South Florida foreign currency company with which Baldwin was
previously associated, International Capital Management, Inc. ("ICM"),
was enjoined in an action for emergency relief brought by the SEC last
September. In that action, the SEC alleged that ICM had defrauded
investors of more than $18 million. The SEC also sued another South
Florida firm, Unique Financial Concepts, Inc., last fall in connection
with a similar foreign currency trading scheme.
SNIPPETS:
SEC SUES THIRD SOUTH FLORIDA FOREIGN CURRENCY TRADING FIRM AND ITS PRESIDENT; ALLEGES
Florida, Miami Division) (complaint filed September 30, 1999)
On September 30, 1999, the Securities and Exchange Commission filed a complaint and consent
Without admitting or denying the SEC's allegations, GCM and Baldwin consented to the entry of
In its complaint, the SEC alleges that Baldwin attracted investors to GCM's foreign currency
The SEC also alleges that the defendants falsely described Baldwin's education, and falsely
According to the SEC, GCM and Baldwin raised more than $1 million from investors.
In their settlement with the SEC, Baldwin and GCM agreed to pay, jointly and severally,
the SEC waived payment by the defendants of disgorgement and a civil penalty based upon the
The final judgment also permanently enjoins Baldwin and GCM from violating Sections 17, and
Another South Florida foreign currency company with which Baldwin was previously associated,
The SEC also sued another South Florida firm, Unique Financial Concepts, Inc., last fall in
The SEC would like to acknowledge the valuable assistance of the Florida Office of the
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