SAN DIEGO, CA – Stephan Baere, a California resident, has been ordered to pay $700,000 in penalties and disgorgement for his role in a foreign currency (forex) trading fraud, according to a May 3, 2007 announcement from the U.S. Commodity Futures Trading Commission (CFTC).
The Honorable Napoleon Jones of the U.S. District Court for the Southern District of California found Baere liable for fraud in connection with the offering of options through White Pine Trust Corporation (WPT). Baere, identified as the Director of Business Development or Director of Client Development for WPT, was ordered to disgorge $600,000 in profits and pay a $100,000 civil monetary penalty. The disgorgement amount may be reduced by any funds recovered in a related criminal action (05CR0874-JM) or other legal proceedings.
The court found that Baere fraudulently solicited customers by making misleading statements about WPT’s history, experience, and performance. He also utilized fabricated testimonials to build trust with potential investors. Notably, Baere admitted to creating a fictitious client named “Tom Clausen” to falsely represent a positive reference for WPT’s funds.
WPT itself was also found liable for fraud and vicariously liable for the actions of Richard Matthews, its Founder and Managing Director. The court imposed a $14.8 million civil monetary penalty on WPT and ordered the company to pay $14.8 million in restitution. Matthews was previously ordered to pay over $29 million in penalties and restitution in November 2006 for his involvement in the scheme.
The case originated from a complaint filed by the CFTC in October 2004. The CFTC acknowledged the assistance of the U.S. Attorney’s Office, the Federal Bureau of Investigation, and the Department of Homeland Security’s Bureau of Immigration, Customs Enforcement in the investigation.
Source: CFTC.gov
Related Federal Cases
- Amy Evangelista, Tax Fraud, California 2023 · Alaska
- Federal Regulators, Lifel, Securities Fraud, California 2020 · New York
- McKenzie Marie Earley, $10M Wire Fraud, C.D. California, 2023 · Alaska
- Bruce Choi, COVID-19 Relief Fraud, Los Angeles CA, 2023 · Pennsylvania
- Irina Segal, Medicare Fraud, Philadelphia PA, 2023 · California
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News