Stuart W. Jones, Payton Lowe, and their company WeCorp, Inc. are facing charges of defrauding over 20 investors out of approximately $1.5 million, according to a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC). The case, filed on April 9, 2009, in the U.S. District Court for the District of Hawaii, alleges a scheme to solicit funds for off-exchange foreign currency (forex) trading.
The CFTC alleges that Jones, Lowe, and WeCorp, all based in Hilo and Honolulu, Hawaii, falsely claimed to be experienced forex traders with a guaranteed, automated trading system promising 100 percent monthly returns with no risk. However, the lawsuit claims they lacked both the system and the expertise, losing investor funds and diverting the money for personal expenses, including a lavish Honolulu home and luxury vehicles.
According to the complaint, the defendants provided investors with fabricated statements showing consistent monthly profits, while in reality, most of the funds were either stolen or lost through trading. The CFTC also named Gary V. Dubin of Honolulu, Gary Duck of Vista, California, and Nathan P. Ramos of Hilo as relief defendants, alleging they received funds as a result of the fraudulent conduct and are not entitled to them.
On April 9, 2009, Judge Philip Pro of the U.S. District Court for the District of Hawaii granted a request from the CFTC to freeze the assets of Jones, Lowe, and WeCorp. The court also authorized the CFTC to seize relevant records. A status conference was scheduled for April 14, 2009. The CFTC is seeking restitution, disgorgement of ill-gotten gains, rescission, civil monetary penalties, and permanent injunctions against further violations of federal commodities laws and trading.
The CFTC acknowledged the assistance of the Hawaii Department of Commerce and Consumer Affairs, Office of the Commissioner of Securities, and the Hilo Police Department in the investigation. The case is being prosecuted by CFTC staff members Jeff Le Riche, Jo Mettenburg, Jenny Chapin, Michael Loconte, Rick Glaser, and Richard Wagner.
Source: CFTC.gov
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