A Utah man was arrested and charged with commodities fraud and wire fraud for a scheme to defraud investors of $825,000.
Scott A. Beatty, 40, of Roy, Utah, was arrested this morning on commodities fraud and wire fraud charges stemming from his scheme to defraud more than 49 investors.
According to the Complaint unsealed today in Manhattan federal court, Beatty solicited investments for off-exchange foreign currency contracts known as ‘forex’ through his investment companies Peak Capital Management Group, Inc., and Peak Capital Group, Inc.
Beatty made false and misleading representations to investors, including that he was using their funds to conduct forex trading when in fact he used just $125,000 of the $825,000 for trading.
He also generated wholly fictitious account statements that he provided to his clients through a client portal on his website, www.peakforex.com.
As a result of these misrepresentations, Beatty obtained more than $825,000 in investments from more than 49 investors, the majority of whom were Japanese citizens who were not authorized to trade leveraged, margined, or financed forex in individually managed accounts.
Beatty routinely converted investor funds to his own use in the form of cash withdrawals and debit card purchases, including at least $517,000 for personal expenses such as restaurant bills and retail purchases.
Related Federal Cases
- Utah Man Pleads Guilty to Forex Fraud Scheme · Utah
- Utah Pharma King Crowell Gets 5 Years for $100M Drug Scam · Utah
- Utah Man Jergensen Gets 59 Months for $2.5M Plattsburgh Scam · Illinois
- Ohio Man Sentenced for $8 Million Investment Fraud Scheme · Utah
- NY AG Secures $720M from Eight Opioid Drug Companies · North Carolina
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
