The U.S. Commodity Futures Trading Commission (CFTC) obtained a federal court order imposing more than $1.1 million in restitution and civil monetary penalties on Helmut H. Weber, of Scottsdale, Ariz., for operating a fraudulent off-exchange foreign currency (forex) scheme from at least June 2008 through January 2009. The final default judgment order, entered by Judge David G. Campbell of the U.S. District Court for the District of Arizona, requires Weber to pay $287,000 in restitution to defrauded customers and a $861,000 civil monetary penalty.
The order stems from a CFTC complaint filed on March 9, 2010, which alleged that Weber, through personal solicitations and his websites, fraudulently solicited customers to invest in forex trading (see CFTC press release 5794, March 11, 2010). The complaint also alleged that, contrary to Weber’s representations, only a fraction of customer funds were actually traded and that the majority of the funds were misappropriated to pay for Weber’s lavish lifestyle.
Read the full CFTC complaint.
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