A judge has granted the US Securities and Exchange Commission’s request to stop an alleged Ponzi scam in the Dallas-Fort Worth area. Accused of masterminding this Texas securities fraud is 31-year-old Christopher Love Blackwell. The SEC claims that the hedge fund trader almost $3 million of investor funds on business and personal expenses.
Per the SEC, since 2007 Blackwell has offered and sold several fraudulent investments that have included hedge funds, fixed-income trading programs, movie distribution investment contracts, and related advisory services. However, instead of buying or trading actual securities, Blackwell used $720,000 to pay for travel, entertainment, child support, office equipment, utilities, food, supplies, office rent, and motor vehicles. He allegedly directed over $900,000 to himself, friends, family, and associates and used more than $1 million for questionable business activities. He spent another $500,000 on Ponzi payments.
The investigation into Blackwell’s activities began because of his large cash transactions and wire transfers. An undercover agent that he thought was a potential investor recorded Blackwell promising risk-free returns of 25-30% a month. He also made false claims that the profits were possible because of his extensive experience a trader, connections he made while working for The Bank of Madrid and Goldman Sachs, and the Master’s degree and Ph.D. he earned from prestigious universities. None of these “facts” are true.
A judge granted the SEC’s request to freeze Blackwell’s assets and temporarily restrain him from further violating antifraud provisions. A request for emergency relief was also granted.
Unfortunately, it is the investors who suffer financial losses as a result of investment fraud.
Related Web Resources:
Hedge Fund Fraud: Texas Traders Assets Frozen, February 25, 2011
SEC Looking for Alleged Ponzi Man, Courthouse News, February 25, 2011
More Blog Posts:
Ex-Wextrust Capital COO Pleads Guilty to Role in $255M Affinity Fraud Scam, Stockbroker Fraud Blog, February 27, 2011
Ex-Triton Financial CEO Accused of Using NFL Contacts to Commit $50M Texas Securities Fraud, Stockbroker Fraud Blog, February 17, 2011
Contact our Texas securities fraud law firm today.