LeapRate Forex Fraud Watch – David Prescott’s forex scheme costs him $1.8 mln

Previously under the name David Weeks he has pulled off another scam costing him $1 mln

The CFTC has reported that it has obtained $455,000 to compensate the customers of Cambridge Currency Partners, run by an individual named David Prescott. An additional civil monetary penalty of $1.35 mln is imposed in a federal court judgment. As LeapRate has already reported he has been previously convicted under the name David Weeks for conspiracy to commit securities fraud, mail fraud and wire fraud and ordered to pay $1 mln to defrauded investors.

The statement of CFTC does not clarify under what circumstances he has changed his name and managed to pull off another fraudulent scheme. In the period from June 2010 through April 2013 Mr. Prescott has set up a scheme by soliciting investors to invest in Cambridge Capital Partners’ forex pool. Consequently he has misappropriated $455,000 and used some of those for air travel, hotel accommodations and gambling.

Clients of the fund were issued promissory notes stating that the principle will be returned to them with interest. No mention was ever made about the risk involved in trading currencies, and Mr. Prescott’s forex trading skills did not cover the promises he issued.

For the full press release visit CFTC’s website.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.


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