LeapRate FX Fraud Watch – Nicholas Trimble, Capstone FX, and Beekeepers Fund

CFTC sets $3.5 million in fines, Trimble used client money to gamble in Vegas.

The CFTC has fined Colorado-based Nicholas Trimble and his two companies Capstone FX Quantitative Analysis Inc. and Beekeepers Fund Capital Management LLC a total of $3.5 million in a foreign currency fraud action. The order also permanently bans Trimble from engaging in any commodity-related activity, including trading and registering with the CFTC.

This is a good one — the CFTC’s original complaint against Trimble and his companies charged them with fraudulently soliciting and accepting more than $1.1 million from customers to trade FX using an automated FX trading system called the “Gladiator system.” The Complaint further alleged that Trimble made false representations to customers regarding their trading success, and misappropriated approximately $441,000 of customer funds — and used the money for gambling at Las Vegas casinos and for Trimble’s personal expenses.

For the full CFTC press release click here.

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

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