The Commodity Futures Trading Commission (CFTC) has initiated proceedings to secure a substantial financial penalty against the head of a company involved in questionable practices related to precious metal investments. Recently, the CFTC filed a request with the Northern District Court of Texas, specifically targeting Damien Moran, who is associated with both Crown Bullion, Inc. and Bright Future Financial LLC.
On March 19, 2025, the CFTC formally submitted its documents, seeking to impose a civil monetary penalty that reflects the serious nature of the alleged misconduct. The Commission’s regulations stipulate that penalties can reach up to three times the illegal monetary gains acquired by the offenders. In the current case, the defendants reportedly gained approximately $6.3 million from customers’ net deposits. After accounting for the amount returned to customers and business expenses, the illegal monetary gain was determined to be $6,316,891.83. Consequently, the CFTC is requesting a total penalty of $18,950,675.49, which is three times the amount gained from customers.
This legal action stems from the CFTC’s earlier complaint filed in September 2023, focusing on Moran and his companies. The complaint charges the defendants with fraudulently soliciting funds from clients aiming to purchase precious metals for self-directed individual retirement accounts (IRAs). Specifically, it alleges that they misappropriated customer funds and assets throughout this scheme.
Targeting mainly elderly individuals and those nearing retirement, the defendants allegedly solicited potential investors to purchase precious metals, assuring them of the safety and potential benefits of such investments through deceptive marketing and false advertisements. They claimed expertise in guiding investors while misrepresenting the security of the investment process.
The deceptive activities reportedly began in March 2018, during which the defendants received over $7 million from more than a hundred individuals. Once the customers deposited their funds with custodians selected by the defendants, fraudulent invoices were submitted to facilitate the transfer of these funds. However, the defendants allegedly manipulated the system, misappropriating the majority of the funds received—purchasing precious metals only at a small fraction of the total amount involved in these transactions, often at inflated prices.
The ongoing scheme has led to significant financial losses for the victims, many of whom transferred substantial amounts from their self-directed IRAs. The troubling allegations highlight the serious breaches of the Commodity Exchange Act (CEA) and CFTC regulations, as the defendants are accused of exploiting vulnerable investors for personal gain.
In conclusion, the CFTC’s request for a steep penalty underscores the serious implications of fraud within the financial sector, especially regarding investments that promise security to those approaching retirement. The case continues to unfold, revealing a troubling picture of misconduct that violates core principles of trust and integrity in financial dealings.