Felon Did It Again, Regulators Say

      MILWAUKEE (CN) – A recidivist felon took $585,000 for an unregistered foreign exchange pool and skimmed at least $455,000 of it, the CFTC claims in court.
     The Commodity Futures Trading Commission sued David Prescott aka David Weeks individually and his business Cambridge Currency Partners, in Federal Court.
     Prescott, of Boston, was ordered to pay restitution of $1.2 million in 2003 after pleading guilty to criminal charged of conspiracy, mail fraud, wire fraud and perjury, the CFTC says in the complaint. He also was sentenced to 3 months of home confinement.
     The Justice Department had charged him criminally in February 2000. On the same day, the SEC charged him, under the name David Week, and in 2006 a federal court ordered him not to do it again.
     But he did it again, the CFTC says. It claims he took at least $585,000 from at least five suckers this time, and skimmed 77 percent of it – at least $455,000 – and didn’t bother to tell them that he was a securities felon and had been enjoined from repeating the crimes.
     He spent the stolen money on air travel, hotels, gambling and other fun stuff, the CFTC says in the complaint. It seeks disgorgement, an accounting, restitution, penalties – and it wants the court to order him not to do it again.
     Foreign exchange trading is a very difficult and risky investment, but is often used as a cover for scams such as this. The Courthouse News database shows 21 such complaints, around the country, in the past 12 months.

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