CFTC Charges Boston Fraudster for Running Un-regulated Forex Pool
Tuesday,07/05/2013|04:27GMTby
Adil Siddiqui
The U.S. Commodity Futures Trading Commission (CFTC) announced that on May 3, 2013, 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 U.S. Commodity Futures Trading Commission (CFTC) announced that on May 3, 2013, 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
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Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
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Join us for an exclusive interview with Stephen Miles, Chief Revenue Officer at FYNXT, recorded live at FMLS:25. In this conversation, Stephen breaks down how modular brokerage technology is driving growth, retention, and efficiency across the brokerage industry.
Learn how FYNXT's unified yet modular platform is giving brokers a competitive edge—powering faster onboarding, increased trading volumes, and dramatically improved IB performance.
🔑 What You'll Learn in This Video:
- The biggest challenges brokerages face going into 2026
- Why FYNXT’s modular platform is outperforming in-house builds
- How automation is transforming IB channels
- The real ROI: 11x LTV increases and reduced acquisition costs
👉 Don’t forget to like, comment, and subscribe.
#FYNXT #StephenMiles #FMLS2025 #BrokerageTechnology #ModularTech #FintechInterview #DigitalTransformation #FinancialMarkets #CROInterview #FintechInnovation #TradingTechnology #IndependentBrokers #FinanceLeaders
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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.
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