Monday, November 23, 2009
UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MINNESOTA,
SEC Complaint: Trevor G. Cook, Patrick J. Kiley
Plaintiff United States Securities and Exchange Commission
(“Commission”) alleges as follows:
NATURE OF THE ACTION
1. The Commission brings this emergency law enforcement action to
charge two leading figures behind a fraudulent scheme that has taken in at least
$190 million from at least 1,000 victims, and to freeze and recover millions of
dollars derived from the scheme before those assets disappear.
2. The Defendants are two Minnesota residents, Trevor G. Cook
(“Cook”) and Patrick J. Kiley (“Kiley”), together with several shell companies
owned or controlled by either Cook or Kiley—UBS Diversified Growth, LLC,
Universal Brokerage FX Management, LLC, Oxford Global Advisors, LLC, and
Oxford Global Partners, LLC (collectively “the Defendant Shell Companies”).
(None of the entities using the UBS name referred to in this Complaint is affiliated
with UBS, AG, the Switzerland-based global financial services firm.)
3. From at least July 2006 through July 2009, Cook and Kiley, directly and indirectly through the Defendant Shell Companies, raised at least $190 million from at least 1,000 investors by selling investments in a purported foreign currency trading venture.
4. Cook and Kiley represented that they would deposit each investor’s funds into a segregated account in the investor’s name; that they would 2 use each investor’s funds to trade foreign currencies; and that the foreign currency trading would generate annual returns of 10% to 12%.
5. Cook and Kiley also represented that their foreign currency trading venture involved little or no risk and that the investors’ principal would be safe and could be withdrawn at any time.
6. Cook and Kiley’s representations were false.
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Posted by Tracey on 11/23/09 at 01:20 PM •
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