SEC Claims UK 'Spread Trader' Ran $9M Ponzi Scheme

Law360 (May 6, 2020, 1:44 PM EDT) -- A speculative U.K. trader promised investors handsome returns on their $9 million through his "spread trading" expertise, but instead strung along his backers with fake account statements and "Ponzi-like payments" while pocketing their cash, the U.S. Securities and Exchange Commission said in a Wednesday complaint.

The agency hit 48-year-old U.K. citizen Damon Elliott and his firm, London-based Piptastic Ltd., with a civil fraud suit in Massachusetts federal court, claiming they ran a "sham" investment operation. Elliott's wife, his business partner and two other associated companies were named as relief defendants for allegedly receiving some of the fraudulent proceeds.

"Holding himself out as an...

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