CFTC Charges Florida Resident with $900,000 Forex Fraud Scheme

Florida resident Brett G. Hartshorn, who purportedly operated a fraudulent foreign-exchange scheme, was hit with criminal charges for allegedly collecting money from several unsuspecting investors and spending it on a lavish lifestyle.

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The U.S. Commodity Futures Trading Commission (CFTC) today filed a lawsuit against Hartshorn, charging him with operating a ‎fraudulent scheme that offered 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 Read this Term transactions.

Specifically, the U.S. derivatives regulator alleged in its complaint that from June 18, 2008 to in or around 2014, Hartshorn engaged in a fraudulent scheme that netted nearly $906,000 from at least 13 retail clients. ‎

In connection with the promotion of his pool, Hartshorn made a series of materially false claims to lure investors interested in ‎Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term. The claim was made that pool participants could get extraordinary investment returns. While he was actually running risky trading strategies, Brett also claimed that he had profitably traded forex on behalf of himself and others. In addition, Hartshorn did not disclose to clients that he will charge his clients some fees, even if losses accumulated in their accounts.

In a parallel criminal action, in some cases instead ‎of using the investors’ monies in trading, the fraudster ‎misappropriated at least $57,414 which was largely spent on ‎personal expenses.

As a result of the actions, the commission seeks full restitution to ‎defrauded participants, disgorgement of any ill-gotten gains and a civil monetary ‎penalty. In addition to the fiscal penalties, the CFTC seeks “permanent registration and trading bans, and a permanent injunction against future violations of federal commodities laws,” as charged.

Finally, the CFTC warned victims that although it works closely with authorities to seek prompt return of all misappropriated funds, wherever situated, they may not recover ‎their lost money because the wrongdoers may not have sufficient funds ‎or assets.‎

The Commission also said it has collaborated with several regulators from various jurisdictions. The CFTC has therefore thanked the Federal Bureau of Investigation (Sarasota, Florida) and the U.K. Financial Conduct Authority for their assistance.