Release Number 5416-07
For Release: November 29, 2007
California Federal Court Orders Resident Brett E. Lovett to Pay More Than $635,000 in Sanctions in Fraud Action Brought by the CFTC
Lovett Ordered to Repay Funds Owed to Fellow Members of his Church
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that on November 20, 2007, the Honorable George H. King of the United States District Court for the Central District of California entered a consent order of permanent injunction against defendant Brett E. Lovett, a self-proclaimed financial advisor and fund manager who never registered with the CFTC in any capacity (CFTC v. Brett E. Lovett, C.D. Cal, Case No. CV05-5074 GHK (MANx)).
The order was entered against Lovett, individually and doing business as Northwest Asset Fund of Oxnard, California, and resolves a commodity futures fraud complaint filed by the CFTC on July 12, 2005 (see CFTC Press Release 5101-05, July 25, 2005).
Order Requires Lovett to Pay More Than $675,900 in Sanctions
The consent order, among other things, requires Lovett to pay $315,943 in restitution to his defrauded customers and $320,000 in civil penalties. The order also prohibits Lovett from engaging in any commodity-related activity, including soliciting funds and engaging in or directing the trading of any commodity futures or options accounts for other persons or entities.
The order states that between October 2002 and August 2005, Lovett fraudulently solicited at least $495,000 from at least four individuals affiliated with his church, purportedly to trade commodity futures, through false promises of high returns from a low-risk investment. In fact, Lovett actually deposited the funds into commodity trading, personal checking, and money market accounts maintained in his own name or in the name of his business, Northwest Asset Fund.
In addition, Lovett misappropriated a portion of those funds for personal use and to re-pay some of the customers. In furtherance of the fraud, Lovett created and sent false account statements to at least two of the customers.
The following Division of Enforcement staff members are responsible for this case: Jennifer S. Diamond, Susan J. Gradman, Judith McCorkle, Cynthia Cannon, Scott R. Williamson, Rosemary Hollinger, and Richard Wagner.
Last Updated: November 28, 2007