DALLAS (CN) – Patrick Haxton and Royal Forex defrauded investors of “at least $305,000” and are “seeking new victims,” the SEC says in Federal Court. Haxton promises “extraordinary returns” from his “currency trading robot” with “little or no risk,” the SEC says, but actually he “lost a huge portion of investor funds trading foreign currencies and has misappropriated the rest.”
The SEC complaint continues: “The Defendants are presently seeking new victims. The Royal Forex Web site remains active on the Internet, touting the trading program using fraudulent claims. For example, it contains a claim that the company made double digit returns in February 2008. In reality, in the same month, Hacton lost virtually all of the investor funds he had not previously misappropriated.”
Haxton, 51, of Carrollton, is sole owner and manager of Royal Forex. He never has registered with the SEC in any capacity and never has been licensed to sell securities, the SEC says. He was indicted for felony insurance fraud in Dallas in 1999, pleaded guilty and was sentenced to two years in prison, suspended, the complaint states.