A federal judge has frozen the assets of a Boston man, after the Commodity Futures Trading Commission charged him with taking at least $455,000 he had promised to invest in foreign exchange currency pools for clients.
David Prescott, who has also gone by the last name Weeks, operated as Cambridge Currency Partners, according to the complaint. Instead of investing clients’ money, he spent it on air travel, hotels, gambling, and car rentals, the complaint alleged.
One client reported Prescott to the FBI when he couldn’t get his money back, according to the complaint, filed in US District Court for the Eastern District of Wisconsin. Prescott had some investors in Wisconsin.
Prescott is not yet represented by a lawyer and could not be reached on Monday.
Prescott was not registered as a commodity pool operator and did not disclose to investors his prior violations of securities law. In 2001, as David Weeks, he pleaded guilty to two counts of conspiracy to commit securities fraud, as well as perjury and other charges. He was sentenced to three months of home confinement and three years of supervised release and ordered to pay $1.2 million to defrauded investors, the complaint says.
The court’s order prohibits the destruction of books and records and sets a telephone hearing for May 15. The CFTC is seeking repayment of investors’ funds, civil monetary penalties, and a permanent injunction against his trading and breaking federal commodities laws.