Court to Freezes Assets of 20/20 Trading Co. Inc. & 20/20 Precious Metals Inc.

May 9th, 2011
by Daniel Carlson
Commodity Futures Trading Commission

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According to claims by the Commodity Futures Trading Commission (CFTC), 20/20 Precious Metals, Inc. and 20/20 Trading Company, Inc. have defrauded clients of approximately $4 million through commodity options fraud as well as other violations. Prompted by the CFTC’s charges, the U.S. District Court of California (Central District) has frozen the companies’ records and assets.

Sharief McDowell, Todd Krejci and Bharat Adatia have also been named as defendants. As agents of 20/20 Precious Metals, they allegedly unlawfully offered, entered and/or confirmed leveraged palladium and copper transactions. They also purportedly committed fraud through leveraged metals transactions as agents of 20/20 Trading.

Furthermore, the CFTC claims that for a period of three years, 20/20 Trading, Adatia and McDowell made fraudulent solicitations to prospective clients in order to buy and sell commodity options through the company. These clients were not made aware that the likelihood of profit from these options was slim to nil.

Clients of the companies lost almost 3.8M, 63 percent of which went to commissions for 20/20 Trading. Nearly 50 percent of clients who opened accounts with 20/20 Trading using IRAs lost more than $1.9M.

In 2009, after learning that the National Futures Association was investigating possible violations of NFA rules by 20/20 Trading, Adatia shut the company down and founded 20/20 Precious Metals. According to the NFA, Precious Metals pocketed more than $400,000 in commissions from the customer deposits of a little more than $1M.

If you believe that you were a victim of investment fraud or negligence as a client of 20/20 Trading Co. or 20/20 Precious Metals, contact Carlson Law at 619/544-9300. We may be able to recover some or all of your financial loss.

Posted in Broker Fraud, Fiduciary Duty Breach, Investment Fraud, Negligent Misrepresentation, Securities Fraud, Securities Law, Securities Litigation | Comments (1)

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