The Commodity Futures Trading Commission today announced it filed a civil enforcement action in the U.S. District Court for the District of Connecticut charging fraud against Michael Frederick Staryk of Florida.
The complaint alleges from at least 2021 through at least 2022, Staryk, individually and d/b/a Magestic World Wide Finance or Magestic World Wide Solutions, and others, engaged in a deceptive scheme in which they fraudulently solicited and obtained at least approximately $600,000 from at least 26 retail clients in the United States purportedly for trading in options on commodity futures contracts. In fact, the promised trading did not occur, and client funds were deceitfully obtained and misappropriated.
In 2004, the CFTC held Staryk liable for options fraud, revoked Staryk’s registration, permanently banned him from trading, and imposed a cease-and-desist order and a civil monetary penalty. As alleged, Staryk failed to disclose the CFTC’s prior action against him.
The complaint also alleges relief defendants Global Financial Institution LLC, a Connecticut-based limited liability company, and Yvonne Stephanie Solerti-Coto, a resident of Connecticut, received client funds to which they were not entitled as they did not provide legitimate services.
In its continuing litigation against defendant Staryk and relief defendants Coto and Global Financial, the CFTC seeks restitution to defrauded customers, disgorgement of ill-gotten gains, a civil monetary penalty, trading bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.
Case Background
According to the complaint, Staryk, and others (acting pursuant to Staryk’s instructions and managed by Staryk) who purported to be traders, fraudulently solicited and obtained funds from retail clients in the U.S. to open accounts at Magestic World Wide for the purported purpose of trading options on commodity futures contracts, including options on oil and gold commodity futures contracts on the New York Mercantile Exchange and Commodity Exchange. As alleged, Staryk oversaw and advised purported traders on the fraudulent solicitation of prospective and actual clients; created emails and a website; purportedly traded for clients; and answered questions as an “industry expert.” In fact, Staryk and others under his direction did not open, manage, and/or trade individual accounts for clients, as promised, and client funds were misappropriated.
The complaint also alleges, in coordination with relief defendant Coto, Staryk and others directed clients to wire funds into accounts at U.S. banks in Connecticut in the name of relief defendant Global Financial, which relief defendant Coto formed and controlled. Client funds were then misappropriated, sent, and/or dissipated to companies and individuals at their accounts in Costa Rican banks in Costa Rica and to companies and individuals at their accounts in U.S. banks in the United States, including Coto.
Parallel Criminal Action
Staryk pled guilty to one count of conspiracy to commit wire fraud based, in part, on conduct that is also alleged in the CFTC’s complaint. [USA v. Staryk, 3:22-cr-00409-B (N.D. Tex.)].
The CFTC thanks and acknowledges the Office of the U.S. Attorney for the Northern District of Texas and the FBI Dallas/Fort Worth Office. The CFTC also thanks and acknowledges the assistance of the Superintendencia General de Valores de Costa Rica (SUGEVAL).
The Division of Enforcement staff responsible for this case are Xavier Romeu-Matta, Michael Cazakoff, Judith M. Slowly, Mary Lutz, Gates S. Hurand, Lenel Hickson, Jr., and Manal M. Sultan.
