Probe into €460mn scandal finds industrial group failed to act on warnings from employees for more than a decade.
Metals
Consent orders require two former precious metals traders to pay hefty civil penalties and accept industry bans, concluding an enforcement action launched in 2019.
The scheme promised more than 60 investors insured vault storage and fixed monthly returns, and left them with $8m in losses.
Compliance professionals tackled current challenges at the latest Hedge Funds Global Relay event in London.
Profits from contracts alleged to have been secured corruptly amount to $143.7m.
The defendants misappropriated most of the customers’ funds and only bought metals for a fraction of the money.
The regulator alerts investors about risks and regulatory confusion among firms that offer both regulated and unregulated items.
Hundreds of investors were tricked into selling retirement funds to invest in a precious metals scheme that included far greater markups than promised.