SCOTTSDALE, AZ – Helmut H. Weber, 51, was ordered to pay over $1.1 million in restitution and penalties for operating a fraudulent foreign currency (forex) scheme, the U.S. Commodity Futures Trading Commission (CFTC) announced on March 4, 2011. The judgment was entered by Judge David G. Campbell of the U.S. District Court for the District of Arizona.
Weber was found liable for defrauding customers through personal solicitations and websites from at least June 2008, through January 2009. The CFTC’s complaint, originally filed on March 9, 2010, alleged that Weber misrepresented the use of customer funds, trading only a fraction of the invested capital and misappropriating the majority to fund a lavish lifestyle.
The court order requires Weber to pay $287,000 in restitution to his victims and a civil penalty of $861,000. A prior judgment, entered December 9, 2010, permanently prohibits Weber from engaging in any commodity-related activity or registering with the CFTC.
Judge Campbell found Weber made false claims about his trading experience, promising investors that 100% of their funds would be used for forex trading and generating high returns. The court determined Weber knowingly misappropriated funds, failed to trade on behalf of customers, and provided false account reports.
Weber also faced criminal charges. On October 22, 2008, the Arizona Attorney General indicted him in Maricopa County Superior Court for fraud and misappropriation of customer funds (Case Number 63 SGJ 50).
The CFTC acknowledged the assistance of the Arizona Corporation Commission, Securities Division, and the Office of the Arizona Attorney General in the investigation.
Source: CFTC.gov
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