CFTC CHARGES FLORIDA FIRM AND OTHERS WITH FOREX POOL FRAUD

FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION 

October 7, 2014

CFTC Charges Florida-based Forex Monthly Income Fund, LLC and its Principals Jean Chauvel, Renaud Pierre-Charles, and Employee and Agent Robert Tripode with Forex Pool Fraud and Other Violations

Federal Court issues emergency order freezing assets and records

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced that on September 30, 2014, Judge William Dimitrouleas of the U.S. District Court for the Southern District of Florida issued under seal an emergency Order freezing and preserving assets under the control of Jean Chauvel, Renaud Pierre-Charles, and Robert Tripode and their company Forex Monthly Income Fund, LLC (FMIF) (collectively, Defendants), a commodity pool operator based in the Miami, Florida area. The Order also prohibits the Defendants from destroying books and records and allows the CFTC immediate access to those records. The court scheduled a hearing for October 10, 2014, on the CFTC’s motion for a preliminary injunction.

Defendants allegedly misappropriated more than $1 million of customer funds

The emergency Order is part of a CFTC civil enforcement action also filed under seal on September 30, 2014. The CFTC Complaint alleges that from as early as January 2011, Defendants fraudulently solicited more than $1.4 million from members of the public to trade foreign currency (forex) in a commodity pool by, among other things, guaranteeing pool participants a monthly return on their investment based on profits purportedly earned from forex trading. Some of the Defendants’ victims were unsophisticated investors, including senior citizens, who sought higher monthly income on their retirement savings, according to the Complaint. The Complaint also alleges that the Defendants never traded or generated any income from trading forex, but rather misappropriated more than $1 million of the pool participants’ funds.

In its continuing litigation, the CFTC seeks full restitution to defrauded pool participants, disgorgement of ill-gotten gains, the payment of appropriate civil monetary penalties, permanent registration and trading bans, and a permanent injunction from future violations of federal commodities laws, as charged.

CFTC Division of Enforcement staff members responsible for this case are Kim Bruno, Michael Loconte, Daniel Jordan, and Rick Glaser.

MAN ORDERED TO PAY RESTITUTION AND PENALTY FOR OFF-EXCHANGE FOREIGN CURRENCY POOL FRAUD

FROM:  COMMODITY FUTURES TRADING COMMISSION 
November 19, 2013
Federal Court Sanctions David Prescott for Forex Pool Fraud
Prescott Ordered to Pay Restitution and a Civil Monetary Penalty Totaling More than $1.8 Million

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) obtained $455,098 in restitution for defrauded off-exchange foreign currency (forex) customers and a $1,365,294 civil monetary penalty in a federal court default judgment Order against Defendant David Prescott, individually and doing business as Cambridge Currency Partners (Cambridge). The court’s Order stems from a CFTC civil Complaint filed on April 30, 2013, charging Prescott with fraudulently soliciting individuals to invest in Cambridge’s forex pool and then misappropriating their monies (see CFTC Press Release 6581-13).

The Order, entered by the Honorable Charles N. Clevert, Jr. of the U.S. District Court for the Eastern District of Wisconsin on October 31, 2013, requires Prescott to pay the restitution and civil monetary penalties, and permanently bars Prescott from engaging in any commodity-related activity, including trading, and from registering or seeking exemption from registration with the CFTC.

Specifically, the Order finds that, from at least June 2010 through April 2013, Prescott fraudulently solicited individuals to invest in Cambridge’s off-exchange forex pool and misappropriated $455,098 of pool participants’ monies, using some of those funds for air travel, hotel accommodations, and gambling. According to the Order, Prescott defrauded pool participants and prospective pool participants by misrepresenting the risks involved in forex trading and executing demand promissory notes in their favor that promised the repayment of the note amount and monthly interest payments, knowing or recklessly disregarding that he could not make those payments by his forex trading.

The Order also finds that Prescott failed to inform participants and prospective participants that, under the name of David Weeks, he previously had been convicted of conspiracy to commit securities fraud, mail fraud and wire fraud, and perjury, had been ordered to pay restitution of over $1 million to defrauded investors, and was permanently enjoined from violating the anti-fraud provisions of the Securities Exchange Act.

CFTC Division of Enforcement staff members responsible for this case are Diane M. Romaniuk, Ava M. Gould, Mary Beth Spear, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner.

CFTC CHARGES BOSTONIAN WITH FOREX POOL FRAUD AND OBTAINS ASSET FREEZE

FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
May 6, 2013
CFTC Charges Bostonian David Prescott with Forex Pool Fraud
Court enters order freezing Defendant’s assets and protecting books and records

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that on May 3, 2013, the Honorable C.N. Clevert, Jr. of the U.S. District Court for the Eastern District of Wisconsin issued an Order freezing the assets of Defendant David Prescott, individually and doing business as Cambridge Currency Partners (Prescott). The court’s Order also prohibits the destruction of books and records and sets a telephonic status hearing for May 15, 2013.

The court’s Order stems from a CFTC civil Complaint filed on April 30, 2013, charging Prescott with fraudulently soliciting individuals to invest in Cambridge’s off-exchange foreign currency (forex) pool and then misappropriating their monies. According to the Complaint, from at least June 2010 to the present, Prescott misappropriated at least $455,000 of pool participants’ monies, using some of those funds for air travel, hotel accommodations, and gambling. The Complaint also alleges that Prescott defrauded pool participants and prospective pool participants by misrepresenting the risks involved in forex trading and executing demand promissory notes in their favor that promised the repayment of the note amount and monthly interest payments, knowing or recklessly disregarding that he could not make those payments by his forex trading.

Additionally, the Complaint alleges that Prescott failed to inform participants and prospective participants that under the name of David Weeks, he previously had been convicted of conspiracy to commit securities fraud, mail fraud and wire fraud, and perjury, and had been ordered to pay restitution of over $1 million to defrauded investors and was permanently enjoined from violating the anti-fraud provisions of the Securities Exchange Act.

The Complaint also charges Prescott with engaging in the alleged misconduct without the benefit of registration as a Commodity Pool Operator.

In the continuing litigation, the CFTC is seeking repayment of pool participants’ losses, repayment of funds received by the Defendant, civil monetary penalties, and permanent injunctions prohibiting the Defendant from violating the federal commodity laws and from engaging in further trading.

The CFTC appreciates the assistance of the Milwaukee, Wisconsin, office of the Federal Bureau of Investigation.

The following CFTC Division of Enforcement staff members are responsible for this case: Diane M. Romaniuk, Mary Elizabeth Spear, Ava M. Gould, Scott R. Williamson, Rosemary Hollinger and Richard B. Wagner.