Texas Court Issues Penalty against Unregulated Steven Scott for Fraud and Misappropriation
- A US-based unregistered trader has been found guilty of committing fraud and operating an unauthorised pool scheme. Steven Scott was ordered by a court to pay restitution and a monetary penalty to settle the charges.
Steven Scott, a Dallas resident, was found guilty of operating a Ponzi scheme type operation that solicited over US $1.1 million from investors. The fraudster duped investors over a two-year period, among the charges Scott was found guilty of running an unregulated commodity pool scheme. The charges require the defendant to pay $766,625 in restitution and a $700,000 financial penalty.
The Federal Court's order comes on the back of a complaint issued by the CFTC which outlined the concerns raised against Scott. Apart form the monetary fines, Scott has been permanently barred from registering as a regulated person by the CFTC.
Details in the Court Order state that Scott's two-year scheme took place from at least January 5, 2009 to March 30, 2011. Scott fraudulently solicited at least $1,146,000 from 43 pool participants to participate in pooled investment vehicles to trade in off-exchange agreements, contracts, or transactions in foreign currency (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi ) on a leveraged or margined basis.
Scott, directly and by word of mouth, solicited pool participants located in Texas and solicited some pool participants by email. Pool participants included Scott’s friends, family members, and other members of the general public.
Scott was found to have used investor funds for his own expenses and was redepositing funds into other investors' accounts to use the funds as profits and principal Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl .
The CFTC has been actively investigating schemes that misappropriated client funds. On its website the watchdog provides an overview of regulated investments and outlines points that investors should be aware of when assessing an investment scheme.
Steven Scott, a Dallas resident, was found guilty of operating a Ponzi scheme type operation that solicited over US $1.1 million from investors. The fraudster duped investors over a two-year period, among the charges Scott was found guilty of running an unregulated commodity pool scheme. The charges require the defendant to pay $766,625 in restitution and a $700,000 financial penalty.
The Federal Court's order comes on the back of a complaint issued by the CFTC which outlined the concerns raised against Scott. Apart form the monetary fines, Scott has been permanently barred from registering as a regulated person by the CFTC.
Details in the Court Order state that Scott's two-year scheme took place from at least January 5, 2009 to March 30, 2011. Scott fraudulently solicited at least $1,146,000 from 43 pool participants to participate in pooled investment vehicles to trade in off-exchange agreements, contracts, or transactions in foreign currency (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi ) on a leveraged or margined basis.
Scott, directly and by word of mouth, solicited pool participants located in Texas and solicited some pool participants by email. Pool participants included Scott’s friends, family members, and other members of the general public.
Scott was found to have used investor funds for his own expenses and was redepositing funds into other investors' accounts to use the funds as profits and principal Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl .
The CFTC has been actively investigating schemes that misappropriated client funds. On its website the watchdog provides an overview of regulated investments and outlines points that investors should be aware of when assessing an investment scheme.