Brett G. Hartshorn of Sarasota, Florida, has been permanently banned from trading and registration after being found to have fraudulently solicited funds from at least 13 individuals for off-exchange foreign currency (forex) trading, and misappropriating client funds. The U.S. District Court for the Southern District of New York entered a consent order on June 11, 2020, outlining these findings.
According to the order, between at least June 18, 2008, and 2014, Hartshorn targeted members of his church and local community, falsely claiming successful forex trading experience and promising substantial profits with limited risk. In reality, he employed risky strategies, incurring significant losses for his clients, sometimes within a single day. Hartshorn failed to disclose a compensation structure that allowed him to profit even when clients lost money.
The court found that Hartshorn misappropriated funds from at least two clients and concealed this from others. He also failed to register as a commodity trading advisor (CTA) with the CFTC, violating registration and documentation requirements. The CFTC initially filed the case against Hartshorn in 2016.
Hartshorn is required to pay $890,000 in restitution. He also faces permanent bans from trading commodities and registering with the CFTC. Separately, Hartshorn pleaded guilty in a parallel criminal case in the U.S. District Court for the Middle District of Florida to willfully making false statements to the FBI regarding his misappropriation of client funds.
The CFTC advises that restitution orders do not guarantee recovery of lost funds, as wrongdoers may lack sufficient assets. The agency continues to pursue accountability for those who harm customers. The CFTC collaborated with the U.S. Attorney’s Office for the Middle District of Florida, the FBI, and the UK Financial Conduct Authority on this matter.
Source: CFTC.gov
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