WEST PALM BEACH, FL (www.hedgeco.net) – The U.S. Securities and Exchange Commission and the Commodities and Exchange Commission announced that a court-appointed receiver will be distributing $50million back to former customers of Princeton Economics International, Ltd. and Princeton Global Management, Ltd. (the Princeton Companies).
According to the new press release, �The Princeton Companies and Martin Armstrong are defendants in continuing litigation brought by the CFTC and SEC involving allegations of fraud (see CFTC News Release 4312-99, Sept. 14, 1999). The interim distribution of funds follows a 2004 District Court order authorizing the Receiver to proceed with the distribution only after any appeals of that order and certain specified claims detailed in the order had been resolved.�
The distribution resulted from the CTFC and SEC action, which charged that Armstrong and his firm were in violation of the CFTC Act and also in violation of Federal Securities laws. The action further stated that the firm engaged in unauthorized commodity futures and options trading. The trading losses from such activities amounting to several million were hidden.
According to the release, �Mr. Armstrong has been held in civil contempt of a District Court order for failing to produce more than $14 million in assets that the CFTC and SEC contend were proceeds of the fraud.� The release further stated that, �The CFTC has also separately entered into settlements with Republic and other individuals associated with the Princeton scheme that imposed, among other things, civil monetary penalties and restitution totaling approximately $20 million.�
Mr. William H. Rogers, a former Republic employee have been bared from associating with any broker or dealer and the SEC also revoked the Registration order of Republic.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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