OXNARD, CA – Brett E. Lovett, a self-proclaimed financial advisor, has been permanently barred from the commodity futures industry and ordered to pay over $675,900 in restitution and penalties following a consent order entered by the U.S. District Court for the Central District of California on November 20, 2007.
Lovett, who operated under the name Northwest Asset Fund, was accused by the Commodity Futures Trading Commission (CFTC) of commodity futures fraud. The CFTC initially filed a complaint against Lovett on July 12, 2005.
According to court documents, between October 2002 and August 2005, Lovett fraudulently solicited at least $495,000 from at least four individuals connected to his church. He falsely promised high returns with low risk through commodity futures trading. However, Lovett allegedly deposited the funds into accounts held in his own name or under the name of Northwest Asset Fund, and then misappropriated a portion for personal use and to repay earlier investors – a classic hallmark of a Ponzi-like scheme.
The court order requires Lovett to pay $315,943 in restitution to his defrauded customers and a civil penalty of $320,000. He is also prohibited from soliciting funds or directing commodity trading for others. Lovett never registered with the CFTC, further violating federal regulations.
The case was led by CFTC enforcement staff including Jennifer S. Diamond, Susan J. Gradman, Judith McCorkle, Cynthia Cannon, Scott R. Williamson, Rosemary Hollinger, and Richard Wagner.
This matter serves as a stark warning to those offering investment advice without proper registration and to individuals engaging in fraudulent schemes within the commodity futures market. The CFTC continues to aggressively pursue such cases to protect investors and maintain the integrity of the market.
Source: CFTC.gov
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