PORTLAND, OR – Aaron Michael Scott of Portland, Oregon has been ordered to pay over $1.3 million in restitution for defrauding customers through a precious metals scheme, the Commodity Futures Trading Commission (CFTC) announced today. The U.S. District Court for the Western District of Washington entered a consent order against Scott and his now-defunct company, BMC Worldwide, Inc. (d/b/a Blue Moon Coins).
The order requires Scott to pay $1,381,461.86 to victims who were misled by the fraudulent operation, which ran from at least October 2013 through April 2014. Scott is also permanently banned from registering with the CFTC and trading in any commodity interests, effectively ending his career in the precious metals market.
According to the CFTC, Scott and BMC falsely presented themselves as a successful precious metals firm, convincing customers to purchase gold and silver under the pretense of maintaining a substantial inventory or the ability to quickly acquire metals upon order. However, the company routinely failed to secure the necessary metals, instead misappropriating customer funds to cover operating expenses, invest in unrelated ventures, pay off debts, and operate a Ponzi scheme by refunding some customers with money from new investors.
This CFTC action runs parallel to a criminal case where Scott pleaded guilty to wire fraud in November 2018. He was subsequently sentenced to four years in prison and three years of supervised release in April 2019. The CFTC acknowledged the assistance of the U.S. Attorney’s Office for the Western District of Washington in the criminal prosecution.
The CFTC warns that restitution orders do not guarantee full recovery for victims, as defendants may lack sufficient assets. The agency continues to emphasize caution when investing in precious metals and encourages individuals to verify a firm’s registration and disciplinary history through the National Futures Association (NFA) website at www.nfa.futures.org/basicnet. The agency also provides resources to help customers identify and avoid precious metals scams.
Source: CFTC.gov
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