Texas Court Issues Penalty against Unregulated Steven Scott for Fraud and Misappropriation
Monday,22/12/2014|22:47GMTby
Adil Siddiqui
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) 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.
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) 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.
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.
XTB Signs Two-Year Global Trading Partnership With SSC Napoli
Finance Magnates Daily Brief: 21 April 2026
Finance Magnates Daily Brief: 21 April 2026
It's Tuesday, the twenty-first of April, twenty twenty-six. You're listening to the Finance Magnates Daily Brief. Today's lead: the Bank for International Settlements has put dollar stablecoins on the regulatory hot seat. Also ahead: first quarter earnings from Capital.com and Plus500, Revolut pushes its IPO to twenty twenty-eight, and a look at where Singapore hedge funds are really moving.
It's Tuesday, the twenty-first of April, twenty twenty-six. You're listening to the Finance Magnates Daily Brief. Today's lead: the Bank for International Settlements has put dollar stablecoins on the regulatory hot seat. Also ahead: first quarter earnings from Capital.com and Plus500, Revolut pushes its IPO to twenty twenty-eight, and a look at where Singapore hedge funds are really moving.
In this video, we review @FundedNext a proprietary trading firm offering evaluation challenges for CFD and futures traders using simulated accounts.
We cover how the model works, including challenge types, profit targets, loss limits, and performance-based rewards. You’ll also learn about payout structures, supported platforms, and key features such as the firm’s 24-hour payout policy and flexible challenge formats.
Watch the full video to see if FundedNext fits your trading approach.
#FundedNext #PropFirm #PropTrading #FinanceMagnates #Trading #CFDTrading #FuturesTrading #TradingReview
In this video, we review @FundedNext a proprietary trading firm offering evaluation challenges for CFD and futures traders using simulated accounts.
We cover how the model works, including challenge types, profit targets, loss limits, and performance-based rewards. You’ll also learn about payout structures, supported platforms, and key features such as the firm’s 24-hour payout policy and flexible challenge formats.
Watch the full video to see if FundedNext fits your trading approach.
#FundedNext #PropFirm #PropTrading #FinanceMagnates #Trading #CFDTrading #FuturesTrading #TradingReview
TradingPro Winner Spotlight 🏆 | Global Best Overall Broker 2025
TradingPro Winner Spotlight 🏆 | Global Best Overall Broker 2025
TradingPro takes the spotlight as Global Best Overall Broker 2025 at the Finance Magnates Awards.
Yusna Yusman, Head of Global Marketing, describes the night as inspiring, elegant, and full of energy.
She also shares a message of appreciation to the clients and community whose support made this achievement possible.
👉 Be part of FM Awards 2026.
#FinanceMagnatesAwards #TradingPro #Trading #Fintech #Broker #WinnerSpotlight #Shorts
TradingPro takes the spotlight as Global Best Overall Broker 2025 at the Finance Magnates Awards.
Yusna Yusman, Head of Global Marketing, describes the night as inspiring, elegant, and full of energy.
She also shares a message of appreciation to the clients and community whose support made this achievement possible.
👉 Be part of FM Awards 2026.
#FinanceMagnatesAwards #TradingPro #Trading #Fintech #Broker #WinnerSpotlight #Shorts
In this video, we review @deriv an online broker offering CFDs and options across a wide range of markets, including forex, stocks, indices, commodities, cryptocurrencies, and derived indices.
We cover the broker’s overall offering, including its multi-jurisdiction regulatory structure, platform ecosystem, and range of account types. We also explore key features such as product availability, funding options, and trading conditions.
Watch the full video to see if Deriv fits your trading needs.
#Deriv #ForexBroker #CFDTrading #FinanceMagnates #Trading #BrokerReview #OnlineTrading
In this video, we review @deriv an online broker offering CFDs and options across a wide range of markets, including forex, stocks, indices, commodities, cryptocurrencies, and derived indices.
We cover the broker’s overall offering, including its multi-jurisdiction regulatory structure, platform ecosystem, and range of account types. We also explore key features such as product availability, funding options, and trading conditions.
Watch the full video to see if Deriv fits your trading needs.
#Deriv #ForexBroker #CFDTrading #FinanceMagnates #Trading #BrokerReview #OnlineTrading
Opening-Up eWallets’ Future: The Enduring Value of eWallets in the Trading Space ︳FM Talks x Paysafe
Opening-Up eWallets’ Future: The Enduring Value of eWallets in the Trading Space ︳FM Talks x Paysafe
eWallets aren’t just moving money anymore, they’re running the show.
In this episode of FM Talks, Adonis Adoni (News Editor at Finance Magnates) sits down with Paysafe 's:
•Bob Legters, Chief Product Officer
•Jeannie Lam, VP of Sales & Account Management for Forex & Financial Trading
to break down how wallets evolved from simple payment tools into core trading infrastructure.
💥 Inside the conversation:
•Why wallets now drive growth, retention, and global scale for brokers
•The hidden power behind deposit success, fraud prevention, and UX
•Stablecoins: hype, reality, and where they actually fit today
•AI in wallets: smarter flows vs rising fraud risks
•The rise of white-label wallets and full ecosystem control
•What the future looks like when wallets become your financial brain
🔗 Learn more about @PaysafeGroup : https://www.paysafe.com/en/optimize-forex-payments-for-growth-in-2026/fm/?utm_source=fm&utm_medium=podcast&utm_campaign=2026-q1-fx-demand-gen&utm_content=podcast
From fiat to crypto, payments to trading, everything is converging and wallets are right at the center of it.
#Fintech #eWallets #Trading #DigitalPayments #Stablecoins #Crypto #AIinFintech #FutureOfFinance #Paysafe #FMtalks
eWallets aren’t just moving money anymore, they’re running the show.
In this episode of FM Talks, Adonis Adoni (News Editor at Finance Magnates) sits down with Paysafe 's:
•Bob Legters, Chief Product Officer
•Jeannie Lam, VP of Sales & Account Management for Forex & Financial Trading
to break down how wallets evolved from simple payment tools into core trading infrastructure.
💥 Inside the conversation:
•Why wallets now drive growth, retention, and global scale for brokers
•The hidden power behind deposit success, fraud prevention, and UX
•Stablecoins: hype, reality, and where they actually fit today
•AI in wallets: smarter flows vs rising fraud risks
•The rise of white-label wallets and full ecosystem control
•What the future looks like when wallets become your financial brain
🔗 Learn more about @PaysafeGroup : https://www.paysafe.com/en/optimize-forex-payments-for-growth-in-2026/fm/?utm_source=fm&utm_medium=podcast&utm_campaign=2026-q1-fx-demand-gen&utm_content=podcast
From fiat to crypto, payments to trading, everything is converging and wallets are right at the center of it.
#Fintech #eWallets #Trading #DigitalPayments #Stablecoins #Crypto #AIinFintech #FutureOfFinance #Paysafe #FMtalks
