A federal complaint filed October 2, 2017, in the U.S. District Court for the Central District of California, alleges Scott Allensworth, of Newhall, California, along with his company E-Slate, Inc., Robert J. Fusco of Henderson, Nevada, and David Weddle of Somerset, Kentucky, engaged in fraudulent solicitation and misappropriation of funds related to two commodity pools. The Commodity Futures Trading Commission (CFTC) brought the charges, citing fabricated statements provided to investors and registration violations.
Judge Consuelo Marshall issued a Statutory Restraining Order on October 3, 2017, freezing the assets of Allensworth, Fusco, and E-Slate, and prohibiting the destruction of relevant records. A hearing on the CFTC’s motion for a preliminary injunction is scheduled for October 17, 2017.
According to the CFTC complaint, the scheme dates back to at least December 2013. Allensworth allegedly solicited tax and retirement-planning clients to invest in the DTG LLC and JustInfo LLC commodity pools. He partnered with Fusco and later Weddle, who were designated as traders for each respective pool.
The complaint details that Allensworth and Fusco misrepresented Fusco’s trading abilities, claiming he was a successful futures trader when he was not. They allegedly misappropriated all funds invested in the DTG LLC pool—totaling $246,500 from 13 investors—and issued false trading statements, concealing the misappropriation for personal use.
Beginning in November 2015, Allensworth and Weddle allegedly used fabricated trading statements and falsely claimed monthly profits exceeding 20% to attract investors to the JustInfo LLC pool. However, Weddle reportedly never achieved a positive monthly return and lost all invested funds by March 2017.
The CFTC alleges Allensworth and Weddle utilized a Ponzi scheme, making payments to existing investors with funds from new investors. They are also accused of using misappropriated funds for personal expenses, including vacations, golf club dues, dining, spa treatments, and college tuition for Weddle’s children. Allensworth solicited 59 clients to invest in the JustInfo LLC pool.
James McDonald, Director of the CFTC’s Division of Enforcement, stated the case exemplifies the exploitation of trust in personal and business relationships for fraudulent gain and highlighted the CFTC’s commitment to prosecuting such activity.
Source: CFTC.gov
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