Scarboro settles forex fraud charges

Scarboro settles forex fraud charges The CFTC has filed and settled charges against Roy Scarboro for fraudulent solicitation and misappropriation as part of an over-the-counter foreign exchange ("forex") trading scam. The North Carolina resident has been ordered to pay a civil monetary penalty of $350,000, and is permanently prohibited from trading on a CFTC-registered entity, or from registering or seeking exemption with the CFTC himself. According to the CFTC, Scarboro began soliciting individuals to trade off-exchange leveraged forex contracts beginning in June 2009. He represented to at least one participant that about 20% of their investment would be put into a forex trading pool called Capital Asset Management Fund, while the rest would be used to purchase U.S. Treasuries. He was able to solicit $713,000 from at least six individuals. Once in possession of client funds, Scarboro never purchased any U.S. Treasury instruments. Instead, he deposited $612,00o in forex trading accounts with various Futures Commission Merchants ("FCMs"). These trades consistently resulted in substantial losses, without a single month of profitability. The defendant ultimately incurred $597,000 in losses. However, he issued false monthly account statements showing modest profits and and only occasional losses. He also did not report that he had misappropriated $59,000 of client money for personal use. Earlier this year, Scarboro was sentenced to 26 months in prison and ordered to pay $682,663.62 in restitution to defrauded customers in relation to the same forex fraud scheme. Read more about this CFTC enforcement action. photo credit: notsogoodphotography CFTC LAW | Forex, Futures and Derivatives Regulatory News – Forex, Futures, and Commodities News and Analysis. Press release, rule summaries, and enforcement actions from the CFTC, NFA, SEC, FSA, and other agencies from around the world.

Read more detail on Recent Administrative Law Posts –

Legal notice about the Scarboro settles forex fraud charges rubric : Hukuki Net Legal News is not responsible for the privacy statements or other content from Web sites outside of the site. Please refer the progenitor link to check the legal entity of this resource hereinabove.

Do you need High Quality Legal documents or forms related to Scarboro settles forex fraud charges?

This entry was posted in Administrative law and tagged , , , , . Bookmark the permalink.

Leave a Reply