CFTC Charges Stuckey With $2.8 Million Forex Fraud
St. Peters resident Randall Stuckey is charged with soliciting at least $2.8 Million from customers in foreign currency futures fraud.
The United States Commodity Futures Trading Commission (CFTC) has filed an antifraud civil lawsuit against St. Peters resident Randall Lynn Stuckey.
Stuckey, who earlier this month was sentenced to 36 months in prison for defrauding more than 50 clients who invested more than $2.2 million dollars with him between 2007 and July 2010, now faces a civil suit. The CFTC filed a lawsuit against Stuckey and his Missouri-based business entities, Stuckey Group, L.P.,Stuckey Group II, L.P. and Oakwood Development Company L.P. (collectively, the Stuckey Common Enterprise) with operating an illegal off-exchange foreign currency (forex) scheme that defrauded more than 65 customers out of at least $2.8 million.
According to a press release by the CFTC, the complaint was filed on Feb. 18, 2011, in the U.S. District Court for the Eastern District of Missouri.
“Stuckey fraudulently solicited and accepted funds from members of the general public from January 2007 through July 2010 to trade leveraged or margined off-exchange forex contracts,” the complaint alleges states.
The complaint stated that Stuckey worked from his home in St. Peters. He allegedly misled customers about the state of their investments. The complaint stated that Stuckey knew he was losing money trading customers’ funds, but told the customers he was actually turning a profit. Stuckey Common Enterprise defendants had actually had substantial losses trading customers’ funds in forex futures. Stuckey allegedly claimed that customers’ investments had increased in value from an original investment of $2.85 million to approximately $4.8 million.
The complaint alleges that Stuckey provided false monthly statements showing positive, profitable gains. The statements reportedly gave false profit numbers ranging for 1 to 6 percent, when the defendants were losing money on the trades.
To conceal and perpetuate his fraud, Stuckey provided customers with monthly account statements showing false account values and false returns on their funds, the complaint charges. Additionally, the account statements falsely reported monthly trading profits from 1 to 6 percent, even though the Stuckey Common Enterprise defendants were losing money on trades, according to the complaint.
Stuckey was sentenced to 36 months in prison on Feb. 7 and 36 months of supervised release In addition to the prison time, Stuckey was ordered to pay restitution of $2,298,000.
In October, Stuckey, 62, pled guilty to one felony count of mail fraud and one count of fraud under the Commodities Exchange Act. In addition to the criminal charge, he was charged with a forfeiture allegation, which will require the forfeiture of $919,000 in various financial accounts.