Roy Scarboro Jr., of Archdale, North Carolina, has been penalized by the Commodity Futures Trading Commission (CFTC) for a fraudulent forex trading scheme. The CFTC filed and settled charges against Scarboro on September 1, 2011, alleging he misappropriated approximately $713,000 from customers.
The CFTC order found that Scarboro fraudulently solicited funds from at least six individuals beginning in June 2009, through a pool named Capital Asset Management Fund, L.P. (CAMF). Scarboro served as CAMF’s General Partner and Manager. He falsely represented to at least one investor that only 20 percent of the fund’s assets would be used for forex trading, with the remainder invested in U.S. Treasuries – a claim the CFTC determined to be false. Scarboro exclusively traded forex with the invested funds and made no investments in U.S. Treasury instruments.
Approximately $612,000 of the solicited funds were deposited into forex trading accounts. Scarboro incurred consistent losses, ultimately losing around $597,000 of his participants’ funds. To conceal these losses, Scarboro issued false monthly account statements, falsely portraying modest profits or minimal losses to investors. He also falsely claimed he was not taking any profits as CAMF’s General Partner. The CFTC further found that Scarboro misappropriated at least $59,000 of the participants’ funds for personal use.
As a result of the CFTC action, Scarboro was ordered to pay a $350,000 civil monetary penalty and is permanently prohibited from trading on any CFTC-registered entity and from registering or seeking exemption from registration with the CFTC. Furthermore, Scarboro was previously sentenced on May 4, 2011, to 26 months imprisonment and ordered to pay $682,663.62 in restitution in a related criminal case (United States v. Roy E. Scarboro, Case Number 3:10-cr-254 (W.D.N.C.)).
Source: CFTC.gov
Related Federal Cases
- Michael Smith, AI-Generated Song Fraud, Manhattan NY, 2023 · North Carolina
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2023 · New York
- Tracey Hernandez, Tax Fraud, Burlington NC, 2021-2022 · North Carolina
- No Defendant Name Found, Bank Fraud Scheme, USA, 2022 · New York
- Letitia James, Investment Fraud, New York 2023 · New Hampshire
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News