DENVER, CO – Nicholas Trimble of Denver, Colorado, has been ordered to pay over $1.28 million in restitution and penalties for perpetrating a commodity fraud scheme, the U.S. Commodity Futures Trading Commission (CFTC) announced today, March 14, 2013.
U.S. District Court Judge Philip A. Brimmer issued a Consent Order for Permanent Injunction against Trimble, requiring him to pay $887,399 in restitution to defrauded customers and a $400,000 civil monetary penalty. The order also permanently bans Trimble from any involvement in commodity-related activities, including trading and registration with the CFTC. He is further prohibited from violating anti-fraud provisions of the Commodity Exchange Act.
The CFTC initially filed a complaint in November 2011, alleging that Trimble, along with his companies Capstone FX Quantitative Analysis, Inc. (Capstone) and Beekeepers Fund Capital Management, LLC (Beekeepers), fraudulently solicited over $1.1 million from customers. The funds were intended for trading foreign currency (forex) through pooled and managed accounts, utilizing an automated trading system named “Gladiator.”
According to the complaint, Trimble and his companies made false claims regarding their trading success to attract investors. The CFTC alleges that approximately $441,000 of customer funds were misappropriated by Trimble, who used the money for personal expenses and gambling at casinos in Las Vegas.
In addition to the penalties against Trimble, Judge Brimmer also issued a Default Judgment and Permanent Injunction against Capstone and Beekeepers on January 28, 2013. The companies are collectively required to pay over $885,000 in restitution and over $1.3 million in civil monetary penalties. They, too, are permanently banned from engaging in commodity-related activities.
The case was led by CFTC Division of Enforcement staff members Brigitte Weyls, Joseph Patrick, Susan Gradman, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
Source: CFTC.gov
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