Sunday, 1 February 2015
Last updated 1 day ago
Dec 5 2006 | 11:21am ET
Another day brings news of another trader in the clink. On Nov. 28, Judge Napoleon Jones of the U.S. District Court for the Southern District of California entered a consent order of permanent injunction against Richard Matthews, charging him with misappropriation of customer funds, issuance of false account statements, fraudulent solicitation and offering illegal foreign currency options in connection with his foreign currency business, White Pine Trust Co., according to the Commodity Futures Trading Commission.
According to findings, Matthews fraudulently solicited customers using misleading statements regarding White Pine’s track record, longevity and experience. He misrepresented to customers the manner in which their funds were held and used fictitious testimonials concerning the success of White Pine to gain the trust of prospective customers. Also, Matthews misappropriated millions of dollars of customer funds while actually trading only a small percentage of their capital.
The consent order permanently bars Matthews from trading for himself or others and imposes civil monetary penalties of $14.7 million and orders payment of $14.7 million in restitution. Matthews is currently incarcerated in a federal penitentiary pursuant to a parallel criminal action brought by the U.S. Attorney for the Southern District of California.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…