This is not David Prescott’s, aka David Weeks, first run-in with securities regulators.
The CFTC has announced that the U.S. District Court for the Eastern District of Wisconsin issued an Order freezing the assets of David Prescott and his business Cambridge Currency Partners. A hearing on the matter is set to take place next week.
The order charges Prescott with fraud and soliciting clients to invest in Cambridge’s off-exchange foreign currency (Forex) pool. The CFTC complaint alleges that Prescott misappropriated at least $455,000 of client money, using some of those funds for air travel, hotel accommodations, and gambling.
Apparently, this is not the first time that David Prescott ran afoul of securities regulators. The CFTC alleges that under the name of David Weeks, he previously had been convicted of conspiracy to commit securities fraud, mail fraud and wire fraud, and perjury. He had been ordered to pay restitution of over $1 million to defrauded investors and was permanently enjoined from violating the anti-fraud provisions of the Securities Exchange Act.
For the full CFTC press release click here.