DALLAS, TX – Steven Lyn Scott, 41, of Dallas, Texas, has been ordered to pay $700,000 in civil penalties and $766,625.30 in restitution following a judgment in the U.S. District Court for the Northern District of Texas on December 22, 2014. The Commodity Futures Trading Commission (CFTC) brought the enforcement action against Scott for operating a fraudulent commodity pool scheme.
According to court documents, Scott solicited at least $1,146,000 from 43 investors between January 5, 2009, and March 30, 2011, promising monthly returns of 2% to 5% through pooled investments in foreign currency (forex) trading. He operated under the entity Stewardship Financial Exchange, Inc., and targeted friends, family, and members of the public in Texas.
The CFTC’s investigation revealed Scott did not actually trade the pooled funds as promised. Instead, he misappropriated a significant portion for personal expenses and used new investor funds to pay earlier investors – a classic Ponzi scheme. The court found that Scott never established trading accounts in the name of the pool and failed to disclose these critical facts to investors.
In addition to the monetary penalties and restitution, a previous consent order issued on May 5, 2014, permanently banned Scott from trading and registering with the CFTC. He was never registered with the agency in any capacity. The charges against Scott include solicitation fraud, misappropriation of customer funds, and violations of the Commodity Exchange Act (CEA) and CFTC regulations.
The CFTC advises potential investors that restitution orders do not guarantee full recovery of lost funds, as the defendant may lack sufficient assets. The agency remains committed to protecting customers and pursuing legal action against those who engage in fraudulent schemes.
Source: CFTC.gov
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