CFTC Brings Successful Prosecution Against Capstone FX For Illegally Soliciting Managed Account Clients
Thursday,14/03/2013|21:04GMTby
Andrew Saks McLeod
The U.S. Commodity Futures Trading Commission (CFTC) has certainly been active in bringing successful prosecutions for FX related fraud this week, having today obtained federal court orders for more than $3.5 million in restitution and civil monetary penalties against Nicholas Trimble and his companies, Capstone FX Quantitative Analysis, Inc. and Beekeepers Fund Capital Management, LLC (Beekeepers), all of Denver, Colorado, resolving the CFTC’s November 7, 2011, Complaint charging Trimble and the two companies with commodity pool and managed account fraud.
On March 14, 2013, the Honorable Philip A. Brimmer of the U.S. District Court of Colorado entered a Consent Order for Permanent Injunction against Trimble requiring him to pay $887,399 in restitution and a $400,000 civil monetary penalty to settle the CFTC’s charges against him.
That Order also permanently bans Trimble from engaging in any commodity-related activity, including trading and registering with the CFTC, and prohibits him from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.
On January 28, 2013, Judge Brimmer also entered an Order for Default Judgment and Permanent Injunction against Capstone and Beekeepers that requires the two companies to pay a total of more than $885,000 in restitution to victims of the fraud, and a total of more than $1.3 million in civil monetary penalties.
The Order also permanently bans Capstone and Beekeepers from engaging in any commodity-related activity, including trading and registering with the CFTC, and prohibits the companies from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.
Specifically, the CFTC’s 2011 enforcement action against Trimble, Capstone, and Beekeepers charged them with fraudulently soliciting and accepting more than $1.1 million from customers to trade Forex through pooled and managed trading accounts using an automated Forex Trading system called the “Gladiator system.”
The Complaint further alleged that Trimble, Capstone, and Beekeepers made false representations to customers regarding their trading success and misappropriated approximately $441,000 of customer funds and used the money for gambling at Las Vegas casinos and for Trimble’s personal expenses.
CFTC Division of Enforcement staff is responsible for this case are Brigitte Weyls, Joseph Patrick, Susan Gradman, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
The U.S. Commodity Futures Trading Commission (CFTC) has certainly been active in bringing successful prosecutions for FX related fraud this week, having today obtained federal court orders for more than $3.5 million in restitution and civil monetary penalties against Nicholas Trimble and his companies, Capstone FX Quantitative Analysis, Inc. and Beekeepers Fund Capital Management, LLC (Beekeepers), all of Denver, Colorado, resolving the CFTC’s November 7, 2011, Complaint charging Trimble and the two companies with commodity pool and managed account fraud.
On March 14, 2013, the Honorable Philip A. Brimmer of the U.S. District Court of Colorado entered a Consent Order for Permanent Injunction against Trimble requiring him to pay $887,399 in restitution and a $400,000 civil monetary penalty to settle the CFTC’s charges against him.
That Order also permanently bans Trimble from engaging in any commodity-related activity, including trading and registering with the CFTC, and prohibits him from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.
On January 28, 2013, Judge Brimmer also entered an Order for Default Judgment and Permanent Injunction against Capstone and Beekeepers that requires the two companies to pay a total of more than $885,000 in restitution to victims of the fraud, and a total of more than $1.3 million in civil monetary penalties.
The Order also permanently bans Capstone and Beekeepers from engaging in any commodity-related activity, including trading and registering with the CFTC, and prohibits the companies from violating the anti-fraud provisions of the Commodity Exchange Act, as charged.
Specifically, the CFTC’s 2011 enforcement action against Trimble, Capstone, and Beekeepers charged them with fraudulently soliciting and accepting more than $1.1 million from customers to trade Forex through pooled and managed trading accounts using an automated Forex Trading system called the “Gladiator system.”
The Complaint further alleged that Trimble, Capstone, and Beekeepers made false representations to customers regarding their trading success and misappropriated approximately $441,000 of customer funds and used the money for gambling at Las Vegas casinos and for Trimble’s personal expenses.
CFTC Division of Enforcement staff is responsible for this case are Brigitte Weyls, Joseph Patrick, Susan Gradman, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
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Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
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We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
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Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
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He closes with a clear message: fraud is scaling, and so must the tools that stop it.
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We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
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Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
