Dallas-Fort Worth Trader Allegedly Engaged In Fraud
The Securities and Exchange Commission (SEC) announced that it obtained a court order to halt an alleged fraudulent scheme in the Dallas-Fort Worth area. The SEC alleged that Christopher Love Blackwell was selling fictitious investments and promising risk free, guaranteed monthly returns of as much as 30%. Unfortunately, rather than investing the money gotten from investors as promised, Mr. Blackwell spent almost $3 million on unrelated business activities, gentlemen’s club entertainment and purchases of luxury vehicles and other toys. Among his misuse of $720,000 of investor money, he used some to pay child support, purchase office supplies, pay rent, purchase Audis and Hummers and divert over $900,000 to himself, friends, family and associates. An additional $249,000 was used to fund a personal entertainment investment and $500,000 was used to make Ponzi like payments from new investors to pay earlier investors.
According to the SEC office in Fort Worth, neither Blackwell nor his two firms have ever registered with the SEC or any state regulators to sell securities. He came under scrutiny due to large wire transfers and cash transactions and was caught pitching his trading program to an undercover agent whom Blackwell thought was a wealthy potential investor. In the sting, he promised risk free returns of 25% to 30% per month with regularity, which was possible because of his stellar academic credentials including a Master’s and Ph.D from the University of Madrid. He had no such degrees.