For Release: March 11, 2010
CFTC Charges Scottsdale, Arizona Resident Helmut H. Weber d/b/a Weber Capital Management with Solicitation Fraud and Misappropriation in Forex Scheme
Defendant used three websites to solicit customers and misappropriated approximately $280,000 of customer funds.
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) filed a complaint against Helmut H. Weber d/b/a Weber Capital Management (WCM) of Scottsdale, Arizona, charging Weber with operating a fraudulent off-exchange foreign currency (forex) scheme.
The CFTC complaint, filed in the U.S. District Court for the District of Arizona, Phoenix Division on March 9, 2010, alleges that Weber, through personal solicitations and his websites -- www.weberfx.com, www.webercapitalmanagement.com and www.newtempsite.com -- fraudulently solicited customers to invest at least $280,000 in forex trading. The complaint also alleges that, contrary to Weber’s representations, only a fraction of customer funds were actually traded and that the majority of the funds were misappropriated to pay for Weber’s lavish lifestyle.
Specifically, the complaint alleges that, from at least June 2008 through January 2009, Weber falsely told customers that he was a successful and experienced forex trader, promised profits of three percent to 10 percent monthly on investments and claimed that WCM was registered with the National Futures Association and the CFTC. Based on these false representations, many of his clients recommended Weber to their friends and family.
Additionally, Weber continued to solicit prospective and existing clients even after the Arizona Corporation Commission, Securities Division, served a “cease and desist” order upon him on September 12, 2008, according to the complaint. The order required him to stop certain forex business activities and to close two of his websites. The state of Arizona subsequently on October 22, 2008, indicted him on 29 criminal violations, including fraud and theft, related to his forex solicitation activities. The criminal charges against Weber remain pending.
In its continuing litigation, the CFTC seeks restitution of funds to defrauded customers, the repayment of ill-gotten gains, civil monetary penalties and permanent trading and registration bans.
The CFTC appreciates the assistance of the Arizona Corporation Commission, Securities Division, and the Office of the Arizona Attorney General.
The following CFTC Division of Enforcement staff members are responsible for this case: Timothy J. Mulreany, Tracey Wingate, Michael Amakor, Paul Hayeck and Joan Manley.
Last Updated: April 2, 2010