No Fool’s Gold: Richard Morello and His Florida Company Vertical Integration Group Charged with Alleged Illegal Precious Metals Transactions

investment fraud attorneysRichard V. Morello, of Lake Worth, Florida, and Junior Alexis of Boynton Beach, Florida, both Managing Members of Lake Worth, Florida-based company Vertical Integration Group, LLC, have been ordered by a Federal Court to pay monetary sanctions for their alleged role in illegal, off-exchange precious metals transactions.

Nearly $900,000 Lost in Alleged Illicit Gold, Silver, Platinum, and Palladium Trades

Richard Morello and Junior Alexis reportedly solicited investors to engage in off-exchange leveraged, margined, and financed precious metals transactions, including gold, silver, platinum and palladium, which were then allegedly executed through Hunter Wise Commodities LLC, according to the Order of Default Judgment by the U.S. District Court for the Southern District of Florida.

The Order further states that approximately 39 customers of Vertical Integration Group invested over $1 million and eventually lost $893,859 of their hard-earned cash due to trading losses, commissions, fees and other charges. Vertical Integration Group reportedly received commissions and fees totaling $554,566 for these precious metals transactions, according to the Order.

Leveraged, margined or financed precious metal trades are considered to be illegal, off-exchange transactions unless they result in delivery of the commodity within 28 days, and said transactions were reportedly never actually delivered, according to the Federal Order against Vertical Integration Group.

Vertical Integration Group and Richard Morello Reportedly Ordered to Pay over $2.5 Million

As a result of the aforementioned actions, the Federal Court has ordered Vertical Integration Group and Richard Morello to pay over $2.5 million in monetary sanctions, and for Junior Alexis to pay approximately $700,000 for his part in the illegal transactions. Morello and Alexis also have received permanent trade, solicitation, and registration bans from the Order, and will henceforth be banned from executing any future illegal, off-exchange retail commodity transactions.

Investment Fraud Attorneys Investigating

The Peiffer Wolf Carr & Kane investment fraud attorneys often represent investors who lose money as a result of illicit trading, or investment fraud. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of illicit trading or investment fraud may contact the securities lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.

Broker: Richard V. Morello

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

phil korosec (1250 Posts)

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.