In short
- CFTC states the court ordered relief defendants to disgorge $110,509.86 in ill-gotten gains from Staryk client funds.
- CFTC confirms the default judgment and consent order resolve all claims from its 2024 enforcement action.
What happened
The U.S. District Court for the District of Connecticut entered a default judgment against Michael Frederick Staryk, ordering him to pay $547,616 in restitution and a $5,907,720 civil monetary penalty. Staryk is permanently banned from trading and registration, and enjoined from further violations of the Commodity Exchange Act and Commission regulations.
Relief defendants Yvonne Stephanie Solerti-Coto and Global Financial Institution LLC were ordered to disgorge $110,509.86 in Staryk client funds, as they had no legitimate claim to these assets. The court's orders resolve all claims from the CFTC’s 2024 enforcement action.
The court also permanently enjoined Staryk from further violations of the Commodity Exchange Act and Commission regulations, as charged, and imposed permanent trading and registration bans.
In numbers
- $5,907,720 civil monetary penalty ordered for Staryk
- $547,616 restitution ordered for Staryk
- $110,509.86 ill-gotten gains to be disgorged by relief defendants
Named in this item
Organization, regulator US — —
What compliance teams should check
- Screen for entities Magestic World Wide Finance, Magestic WW Solutions, and Magestic World Wide Solutions in client onboarding and transaction monitoring.
- Review client fund flows for links to Yvonne Stephanie Solerti-Coto and Global Financial Institution LLC as named relief defendants.
- Update compliance controls referencing CFTC Press Release No. 8992-24 and the 2024 enforcement action for options fraud typologies.
Why it matters
This case highlights the importance of monitoring deceptive schemes involving fraudulent solicitation and misappropriation of client funds, especially in options trading. The permanent bans and significant penalties imposed by the court reinforce the need for robust due diligence and ongoing surveillance of individuals and entities with prior enforcement actions. Compliance officers must ensure that controls are updated to detect similar fraud typologies and prevent exposure to sanctioned parties, as detailed in the CFTC’s enforcement action.
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