PORTLAND, OR – Aaron Michael Scott of Portland, Oregon, was ordered to pay $1,381,461.86 in restitution and permanently banned from the commodity futures and options markets on April 27, 2021, following a consent order entered by the U.S. District Court for the Western District of Washington. The Commodity Futures Trading Commission (CFTC) brought the action against Scott for fraud and misappropriation related to a precious metals scheme operated through his now-defunct company, BMC Worldwide, Inc. (d/b/a Blue Moon Coins).
The CFTC’s case, initially filed on October 3, 2018, alleged that Scott and BMC fraudulently misrepresented the company’s success and ability to fulfill customer orders for gold and silver. Between October 2013 and April 2014, Scott and BMC allegedly convinced customers to purchase precious metals by falsely claiming to maintain sufficient inventory or the ability to quickly acquire it upon payment.
However, the order found that BMC did not maintain adequate inventory and frequently failed to procure metals for customer orders. Instead, customer funds were allegedly misappropriated to cover operating expenses, investments in other ventures, unrelated debts, and to refund earlier investors – effectively operating a Ponzi scheme.
This CFTC action runs parallel to a criminal case where Scott pleaded guilty to wire fraud on November 1, 2018, in the Western District of Washington (United States v. Scott, No. CR18-5500-RBL). He was subsequently sentenced to four years in prison and three years of supervised release on April 5, 2019.
The CFTC cautions that restitution orders do not guarantee full recovery of lost funds, as defendants may lack sufficient assets. The agency emphasizes its commitment to protecting customers and holding those who commit fraud accountable.
Stephen Turley, Jenny Chapin, Brett Shanks, Jeff Le Riche, Christopher Reed, and Charles Marvine of the CFTC’s Division of Enforcement, along with former staff members James Humphrey, Peter Riggs, and Jo Mettenburg, were responsible for this case. The CFTC acknowledged the assistance of the U.S. Attorney’s Office for the Western District of Washington.
Source: CFTC.gov
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