Local Lubbock, Texas news source, Lubbock Online, has reported that Tracy Morgan Spaeth has been arrested this week and charged with “fraudulent sale of more than $100,000 in securities”. The news is a return of negative headlines for Spaeth.
Back in 2011, Spaeth was the source of an NFA complaint, as the regulator alleged that he had used deceptive and misleading marketing materials to solicit clients, as well as referred them to firms that at best would be considered ‘shady’. The case ultimately led to Spaeth being fined and receiving a three year bar from being associated with NFA regulated firms.
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Barred from FX and futures, Spaeth moved to the securities markets where he began to market investments in arbitrage trading hedge funds. Spaeth continued to use the same marketing strategy of touting exaggerated investment gains, promoting 10% to 50% profits. Finding new culprits, Spaeth had his Texas state securities license suspended in May of this year for offering both unregistered and unsuitable investments.
According to Lubbock Online, the current arrest may be due to Spaeth continuing to market securities after his suspension. Lubbock online added that “selling more than $100,000 in fraudulent securities is a first-degree felony. Conviction carries a potential prison sentence of life, or from five to 99 years”.
Back in 2011, Forex Magnates began the story of the NFA’s complaint by stating “May this serve as a warning to unsuspecting forex traders and investors when they encounter too good to be true stories”. The same continues to apply today.