Beau Diamond, of Sarasota, Florida, faces charges of fraud and misappropriation related to a $37 million foreign currency (forex) Ponzi scheme, according to a U.S. Commodity Futures Trading Commission (CFTC) announcement on September 23, 2009.
The CFTC obtained a preliminary injunction against Diamond and his company, Diamond Ventures LLC, on September 22, 2009, following a complaint filed on September 3, 2009, in U.S. District Court in Tampa. Judge Elizabeth A. Kovachevich issued the order, continuing an existing asset freeze and prohibiting further violations of the Commodity Exchange Act. The injunction was deemed necessary to protect investors and allow the CFTC to pursue its investigation.
Authorities allege that Diamond and Diamond Ventures LLC solicited funds from at least 200 investors, promising guaranteed returns of principal and monthly profits ranging from 2.75% to 5%. The CFTC claims these returns were falsely attributed to successful forex trading. In reality, the defendants lost $13.3 million trading forex, and at least $850,000 of customer funds were misappropriated for personal expenses, including gambling, jewelry, airfare, and hotel accommodations.
To maintain the scheme, the defendants allegedly provided investors with fabricated account statements showing false gains, concealing the substantial losses their accounts were actually incurring. Diamond was arrested by federal authorities on September 2, 2009, and a federal magistrate judge subsequently denied his request for bond, ordering him detained.
The CFTC is seeking permanent injunctive relief, restitution for defrauded investors, repayment of ill-gotten gains, civil penalties, and other equitable relief in the ongoing litigation. The case is being prosecuted by CFTC staff members Diane M. Romaniuk, Ava M. Gould, Mary Elizabeth Spear, Scott R. Williamson, Rosemary Hollinger, and Richard B. Wagner.
Source: CFTC.gov
Related Federal Cases
- Two Foreign Nationals, ID Theft Scheme, Los Angeles CA, 2023 · Illinois
- Juan A. Tony Marrero, Medicare Fraud Scheme, Miami FL, 2023 · Texas
- Juan A. Tony Marrero, Medicare Fraud Scheme, Miami FL, 2024 · Florida
- John F. Rivers, Car Theft Scheme, New York, 2023 · New York
- Marc Henry Menard, Investment Fraud Scheme, Mineola NY, 2023 · New York
