(STL.News) The Securities and Exchange Commission (SEC) yesterday announced charges against a Louisiana man for orchestrating a foreign currency trading scheme that defrauded at least 28 investors, most of whom are from the Baton Rouge, Louisiana area.
The SEC alleges that Todd W. Mixon, a Baton Rouge resident with no known financial industry experience, raised at least $576,000 by misrepresenting to investors that he had learned how to successfully trade foreign currencies and by promising investors that he would use their funds to trade foreign currencies. The SEC’s complaint further alleges that Mixon provided investors with forged brokerage statements to create the illusion that Mixon’s trading was extraordinarily profitable, achieving consistent monthly profits as high as 160%. In reality, as alleged, Mixon did not use investor funds to trade foreign currencies as he had promised to do, but rather spent those funds on personal travel and other expenses and to make Ponzi-like payments to investors.
The SEC’s complaint, filed in federal court in Louisiana, charges Mixon with violations of the antifraud provisions of the federal securities laws. The SEC seeks a permanent injunction, disgorgement plus prejudgment interest, and a civil penalty.
The SEC’s investigation was conducted by Alexander Charap and Kathleen Strandell in the Miami Regional Office and supervised by Jessica M. Weissman and Glenn S. Gordon. The SEC’s litigation is being led by Andrew Schiff.