Glenn Kane Jackson, of Tiburon, California, was arrested and faces charges of operating a $4.3 million forex fraud scheme, according to a U.S. Commodity Futures Trading Commission (CFTC) enforcement action announced June 24, 2010. Jackson, the principal of Highlands Capital Management, LP, is accused of misappropriating customer funds and making false representations to investors.
The CFTC complaint alleges that from January 2006 through December 2009, Jackson solicited funds from at least 23 customers with the promise of forex trading profits. While approximately $1.6 million was lost through trading and $600,000 was returned to customers, a staggering $2.1 million remains unaccounted for.
Investigators found Jackson falsely claimed a consistent record of profitable forex trading, when in reality his accounts experienced net losses each year from 2005 to 2009. He further deceived customers by issuing false account statements indicating consistent profits between August 2008 and December 2009, despite incurring losses during that period.
Customers who requested withdrawals faced delays and were given false explanations as to why their funds were unavailable. The CFTC seeks full restitution for customers, rescission of contracts, and disgorgement of any ill-gotten gains. They are also pursuing civil monetary penalties and permanent injunctions to prevent future violations of federal commodities laws.
On June 17, 2010, Judge Samuel Conti of the U.S. District Court for the Northern District of California issued an order freezing the assets of both Jackson and Highlands Capital Management and prohibiting the destruction of financial records. Simultaneously, the Tiburon Police Department arrested Jackson on related criminal charges filed by the Marin County District Attorney. The CFTC acknowledged the assistance of both agencies in the investigation.
The case is being prosecuted by Matthew Elkan, Daniel Jordan, William McNish, Rick Glaser, and Richard B. Wagner of the CFTC’s Division of Enforcement.
Source: CFTC.gov
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