CFTC Charges Nicholas Trimble and His Two Companies with Million Dollar Forex Scheme

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) filed a civil injunctive complaint charging defendants Nicholas Trimble and his companies, Capstone FX Quantitative Analysis, Inc. (Capstone) and Beekeepers Fund Capital Management, LLC (Beekeepers), all of Denver, Colo., with fraudulently soliciting at least $1.1 million from customers to trade foreign currency (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) through pooled and managed trading accounts using a proprietary Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term system.

On the same day the complaint was filed, November 7, 2011, Judge Philip A. Brimmer of the U.S. District Court for the District of Colorado, Denver Division, entered a restraining order freezing Trimble’s, Capstone’s, and Beekeepers’ assets, prohibiting the destruction of books and records, and granting the CFTC immediate access to such documents.

The CFTC’s civil complaint alleges that from at least June 2009 to the present, Trimble, through Capstone and Beekeepers, fraudulently solicited customers to invest in pooled and managed forex trading accounts. Trimble falsely claimed that he used a proprietary, fully programmable, automated forex robot trading system that he called the “Gladiator system” to trade customer funds, according to the complaint.

Trimble also falsely claimed that Capstone actively manages more than $5 million in forex trading accounts and that Capstone’s forex trading system has consistently generated monthly profits of at least three percent over the last four years, according to the complaint.

In addition, Trimble allegedly falsely claimed that Capstone received a $20 million purchase offer for the Gladiator trading system but turned the offer down because the system was too valuable. Trimble also falsely claimed that Capstone secured a commitment from a reputable trading firm to invest $5 million based on the Gladiator system’s proven success, according to the complaint.

Moreover, the complaint alleges that Trimble, Capstone, and Beekeepers misappropriated approximately $441,000 of customer funds and used the money for gambling at Las Vegas casinos and for Trimble’s personal expenses.

In its continuing litigation, the CFTC seeks a return of ill-gotten gains, restitution to defrauded customers, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of the federal commodities laws.

CFTC Division of Enforcement staff responsible for this case are Brigitte Weyls, Joseph Patrick, Susan Gradman, Scott Williamson, Rosemary Hollinger, and Richard Wagner.

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