Scott A. Beatty, Commodities Fraud, New York 2024

State: New York
Category: Fraud &#038; Financial Crimes
Source: <a href="https://www.justice.gov/usao-sdny/pr/utah-man-arrested-and-charged-manhattan-federal-court-commodities-fraud" style="color:#cc0000;" target="_blank" rel="nofollow noopener">DOJ Press Release ÃƒÂ¢Ã¢â‚¬Â Ã¢â‚¬â€

Utah Man Charged with Commodities Fraud in Manhattan Federal Court

Scott A. Beatty

Scott A. Beatty, 40, of Roy, Utah, was arrested on January 1, 2024 and charged with one count of commodities fraud and one count of wire fraud in connection with a scheme to defraud more than 49 investors of over $825,000 through off-exchange foreign currency contracts.

According to the Complaint unsealed in Manhattan federal court, Beatty, through his investment companies Peak Capital Management Group, Inc., and Peak Capital Group, Inc., engaged in a fraudulent scheme to obtain investments from individual investors purportedly for the purpose of trading in foreign exchange from January 2011 through June 2014.

Beatty made false and misleading representations to investors, including claims that he was using investor funds to conduct forex trading when in fact he used just $125,000 of the $825,000 for trading. He also generated fictitious account statements that he provided to his clients.

As a result of these misrepresentations, Beatty obtained over $825,000 in investments from more than 49 investors, the majority of whom were Japanese citizens. He routinely converted investor funds to his own use, including at least $517,000 for personal expenses such as restaurant bills and retail purchases.

Beatty is charged with one count of commodities fraud, which carries a maximum sentence of 10 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. He is also charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross fraud gain.

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