Monday, August 26, 2013

Commodity body seeks to revoke registration of firm accused in schemes

The U.S. Commodity Futures Trading Commission said it has filed a notice of intent to revoke the registration of Prestige Capital Advisors in Charlotte, after a federal court found that it defrauded investors.

The U.S. District Court for the Western District of North Carolina found that Toby D. Hunter of Waxhaw and his companies, Prestige and D2W Capital Management, also based in Charlotte, fraudulently solicited and accepted $4.7 million for investment in a pool that traded commodities and futures contracts.

According to the commission, there were at least six investors in the Prestige Multi-Strategy Fund, a pool Hunter and Prestige created. In soliciting investors, Prestige posted false trading returns on a website called BarclayHedge, the court found.

The court also found that D2W -- a managed foreign currency, or forex, account service -- sent false account statements.

In June, Hunter, Prestige and D2W were ordered to pay roughly $11.7 million in fines and restitution.