DENVER, CO – November 9, 2011 – Nicholas Trimble of Denver, Colorado, is facing charges of fraud following a civil complaint filed by the U.S. Commodity Futures Trading Commission (CFTC). The complaint alleges Trimble fraudulently solicited at least $1.1 million from customers for foreign currency (forex) trading through pooled and managed accounts.
According to the CFTC, Trimble operated through his companies, Capstone FX Quantitative Analysis, Inc. (Capstone) and Beekeepers Fund Capital Management, LLC (Beekeepers). From at least June 2009 through November 2011, Trimble is accused of falsely claiming to utilize a proprietary automated trading system, dubbed the “Gladiator system,” to trade customer funds. He also allegedly misrepresented the success of Capstone, claiming the company actively managed over $5 million in forex accounts and consistently generated monthly profits of at least three percent over the prior four years.
The CFTC complaint further details that Trimble falsely stated Capstone had rejected a $20 million offer for the Gladiator system and had secured a $5 million investment commitment from a reputable firm, both based on the system’s purported success. Investigators allege that Trimble, Capstone, and Beekeepers misappropriated approximately $441,000 of customer funds, diverting the money to personal expenses and gambling at Las Vegas casinos.
On November 7, 2011, Judge Philip A. Brimmer of the U.S. District Court for the District of Colorado issued a restraining order freezing the assets of Trimble, Capstone, and Beekeepers. The order also prohibits the destruction of financial records and grants the CFTC immediate access to relevant documentation.
The CFTC is seeking the return of ill-gotten gains, restitution for defrauded customers, civil monetary penalties, trading and registration bans, and permanent injunctions to prevent further violations of federal commodities laws. The case is being pursued by Brigitte Weyls, Joseph Patrick, Susan Gradman, Scott Williamson, Rosemary Hollinger, and Richard Wagner of the CFTC’s Division of Enforcement.
Source: CFTC.gov
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