SPRING, TX – Stephen Brantley, along with Dwayne Bryant Dawson and their company PassThrough Investments, LLC, have been charged with fraud by the U.S. Commodity Futures Trading Commission (CFTC), officials announced on April 26, 2012. The charges stem from a $2.6 million scheme that defrauded at least 60 members of the public.
According to the CFTC, Brantley and Dawson fraudulently solicited funds from investors to participate in an off-exchange foreign currency (forex) pool. They allegedly promised returns of at least 200 percent and falsely claimed customer funds were actively trading in the market. The scheme operated between approximately April 2010 and October 2010.
The CFTC order details that Brantley and Dawson knowingly made false statements and omitted crucial information about the risks and legitimacy of the forex pool. Brantley reportedly told prospective investors the investment was “solid” and that he had thoroughly vetted the pool operators. Dawson allegedly claimed the pool had discovered a foolproof trading strategy, guaranteeing profits regardless of market direction, even suggesting success would continue “until Jesus returns.”
However, the CFTC found that Brantley and Dawson failed to adequately verify the pool operators’ trading history or current success. The agency alleges the operation functioned as a Ponzi scheme, using new investor funds to pay returns to earlier investors. Furthermore, the pair failed to disclose that PassThrough Investments received a 20 percent fee on each new customer deposit.
As a result of the settlement, Brantley, Dawson, and PassThrough Investments, LLC, will each pay a $140,000 civil monetary penalty and a combined restitution of $701,617. They are also permanently banned from trading and registering with the CFTC and are required to cease any further violations of the Commodity Exchange Act.
The Texas State Securities Board and the U.K. Financial Services Authority assisted in the investigation.
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
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News