CFTC Wins Fraud Trial Against Florida-Based Precious Metals Traders Robert Escobio, Southern Trust Metals, And Loreley Overseas Corporation - Escobio And His Companies Are Permanently Banned From Commodity Trading And Registration, And Ordered To Pay Approximately $2.5 Million In Restitution And Penalties.

The U.S. Commodity Futures Trading Commission (CFTC) announced today a victory after trial involving a fraudulent precious metals scheme perpetrated by Robert Escobio of Miami, Florida, through his companies Southern Trust Metals, Inc. (Southern Trust) and Loreley Overseas Corporation(Loreley) (collectively, Defendants). U.S. District Judge James Lawrence King of the U.S. District Court for the Southern District of Florida issued his Findings of Fact and Conclusions of Law (Order) and Final Judgment (Judgment) in favor of the CFTC on August 29, 2016. The Judgment permanently enjoins and prohibits Escobio and the two companies from trading and orders them to pay restitution in the amount of $1,543,892 and a civil penalty of $254,919.66 for an illegal precious metals scheme. The Judgment also orders Southern Trust and Escobio to pay additional restitution of $559,725 and an additional penalty of $120,112.33 for an unregistered futures scheme.