A Wisconsin district court has found David Prescott guilty of fraudulently soliciting individuals to invest in a forex investment pool. The Honorable Charles N. Clevert, Jr. of the U.S. District Court required Prescott to pay the restitution and civil monetary penalties, and has permanently barred Prescott from engaging in any commodity-related activity, including trading, and from registering or seeking exemption from registration with the CFTC.
In a press notification issued by US regulator, the U.S. Commodity Futures Trading Commission (CFTC), the watchdog has obtained $455,098 in restitution for defrauded OTC FX customers and a $1,365,294 civil monetary penalty in a federal court default judgment Order against David Prescott.
Prescott who is also known as David Weeks was previously charged with a range of illicit activity. His latest breach of rulings saw the fraudster dupe investors for $455,000 after soliciting them to invest into his currency fund, Cambridge Currency Partners. Prescott’s crime was investigated after investors raised a complaint against the activity in April this year.
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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.
Lawmakers from Wisconsin reached their verdict on the 30th of October in regards to Prescott’s fraud, and thus outlawed the individual from working as a regulated advisor.
In light of several FX-related scams, the CFTC has dedicated a specific section on its website educating investors about the possible issues related to FX investments.