Over the years one of our biggest competitors has been Monex, formerly known as the Pacific Coin Exchange. Although they advertise physical coins and bullion, they push a dubious margin scheme that’s quite lucrative for them. Unfortunately, a lot of investors have been burned by this highly leveraged speculation. The U.S. Commodity Futures Trading Commission took action against them a few years ago. Much to our surprise and chagrin Monex appeared to have won the case. However, the CFTC just sent out this press release:
NINTH CIRCUIT RULES IN FAVOR OF CFTC IN FRAUD CASE AGAINST MONEX DEPOSIT COMPANY AND ITS PRINCIPALS
Washington, DC – On Thursday, July 25, the U.S. Court of Appeals for the Ninth Circuit reinstated its anti-fraud enforcement action against Monex Deposit Company and its affiliated companies and principals (defendants).
Ted Butler put it this way: “Nearly a year and a half ago, a district court dismissed the CFTC’s case against Monex, the retail precious metal dealer from Newport Beach, CA, for widespread fraud that involved hundreds of millions of dollars of losses to unsuspecting clients, many of them elderly. This week, the Ninth District Appeals Court reinstated the CFTC’s case against Monex, allowing it to proceed. My own opinion of Monex, formed over more than two decades is that it deceived unsuspecting clients into trading metals on margin and should be put out of business.”