Articles Tagged with Forex commodity pool

The U.S. Commodity Futures Trading Commission says that a federal court has issued a supplemental Consent Order of Permanent Injunction mandating that Steven Lyn Scott pay over $760,000 in restitution, a $700K penalty, as well as post-judgment interest for his involvement in a Forex commodity pool scam. It was the U.S. District Court for the Northern District of Texas that put out the order, which comes after a CFTC enforcement action charged the Dallas resident with customer fund misappropriation, solicitation fraud, and registration violations related to running a commodity pool scam.

According to The Court, from early January 2009 through at least the end of March 2011, Scott fraudulently solicited a minimum of $1,146,000 from over 40 pool participants for their involvement in pool investment vehicles that were to trade in contracts, off-exchange agreements, or transactions in foreign currency on a margined or leveraged basis. Many of the participants lived in Texas and included his friends, relatives, and others.

A May 5, 2014 Consent Order, issued earlier by this same court, noted that Scott invoked the name of his entity Stewardship Financial Exchange when pursuing pool participants. He is accused of guaranteeing returns of 2-5% a month for participants that signed up for six months.