HOUSTON, TX – February 16, 2012 – Robert D. Watson, of Houston, Texas, was sentenced to 20 years in prison on February 10, 2012, after pleading guilty to securities fraud in connection with a multi-million dollar foreign currency (forex) scheme. The sentencing stems from a case brought by the U.S. Commodity Futures Trading Commission (CFTC) and is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
The CFTC obtained federal court consent orders on February 2, 2012, resolving claims against Watson and his co-defendant, Daniel J. Petroski, also of Houston, as well as companies PrivateFX Global One Ltd., SA, and 36 Holdings Ltd. Global One and 36 Holdings are currently under the control of a court-appointed receiver, Thomas L. Taylor III.
The CFTC originally filed a complaint on May 21, 2009, alleging that the defendants operated a fraudulent off-exchange forex scheme. The scheme reportedly raised approximately $21 million from at least 80 investors, who were lured by promises of successful forex trading performance. From April 2006 through April 2009, investors were told of monthly returns ranging from 1.5 to nearly 3 percent, with claims of never experiencing a losing month.
However, the court found these representations to be false. Furthermore, prior to the CFTC complaint, Watson allegedly provided fictitious bank and trading records to conceal the fraudulent activity.
Under the consent orders, Watson is jointly and severally liable with Global One and 36 Holdings for $21 million in disgorgement and must also pay a $10 million civil monetary penalty. Petroski is required to pay $414,723 in disgorgement and a $140,000 civil monetary penalty. Both defendants have forfeited their rights to any funds or assets held by the receiver.
A previous consent order, entered on February 24, 2010, permanently barred all defendants from engaging in commodity-related activity and registering with the CFTC.
The CFTC acknowledged the assistance of the Fort Worth Regional Office of the Securities and Exchange Commission in the investigation. The case was handled by CFTC staff members Christopher Reed, Charles Marvine, Rick Glaser, and Richard Wagner.
Source: CFTC.gov
Related Federal Cases
- Jason Jarin, Medicaid Fraud and Illicit Transition Procedures, Texas 2023 · Texas
- Shannon Tecoko Mays, Conspiracy to Commit Wire Fraud, Texas, 2012 · Texas
- James Pavlounis, Social Security Administration Fraud and Tax Evasion, California 2023 · Texas
- Juan A. Tony Marrero, Medicare Fraud Scheme, Miami FL, 2023 · Texas
- Tren de Aragua Leaders Unsealed, Terror Cartel Crimes, Texas, 2023 · Nebraska
