BULLETIN: CFTC Alleges Robert Stanley Harrison Of Easley, S.C., Was Presiding Over Fraud Scheme That Guaranteed ‘100 Percent Profits’ In 90 Days Through Investors Choice Advisors LLC Commodity Pool; Federal Judge Freezes Assets

The case against Robert Stanley Harrison appears to have one of the signatures of an investment-fraud scheme: a website asking for “patience” owing to purported “improvements” in progress. The site also claims that God “wants you to be so blessed . . . so keep standing, keep hoping and keep declaring His Word . . .”

BULLETIN: In a case filed under seal last week, the CFTC accused Robert Stanley Harrison of Easley, S.C.. of presiding over a commodity-pool and Forex fraud scheme in which investors were guaranteed a return of 100 percent in 90 days. The seal now has been lifted, and U.S. District Judge G. Ross Anderson has granted an emergency asset freeze.

The scheme traded in part via “regular teleconferences with Pool participants” during which Harrison “touted his trading ability and the profits he was purportedly making for Pool participants,” the CFTC said.

Separately, the Securities Division of the Office of the Attorney General of South Carolina accused Harrison last year of scamming investors through Investors Choice Advisors LLC, the same company referenced in the CFTC complaint. The Securities Division described Harrison as a man who “had multiple prior felony convictions which were not disclosed when he offered and sold securities.”

Records in Pickens County, S.C., show several arrests on fraud charges for Harrison, including one on Dec. 19, 2012. The address in the Pickens County filings is the same address as Investors Choice Advisors LLC.

Meanwhile, the website of the enterprise claims it is “undergoing improvements” and asks investors to be “patient.” A section of the website dubbed “Motivational Moments” carries this message:

“During these challenging times, know that you are not alone. God has a plan to drive out the darkness — He will flood you with His light!”

Here is part of what the CFTC said in the unsealed filing (italics added):

Prior to expiration of their “Investment Contracts,” at least some of the Pool participants were solicited by Defendant and his agent to “roll over” their contracts for another 60 or 90 day term and, at the same time, to increase the principal amount of their investments.

For example, after sending Defendant $1,000 for investment in the Pool in September 2011, one Pool participant received a contract via email from Defendant’s agent that reflected the Pool participant’s $1,000 principal investment and promised a return of $2,000 in 90 days.

In November 2011, Defendant’s agent solicited this Pool participant to roll over her initial principal investment, along with her purported returns, and to invest additional funds in the Pool. Based on the representations that her initial investment was profitable, this Pool participant decided to roll over her initial investment and to invest an additional $28,000 in the Pool. After sending her funds to Defendant, the Pool participant received a new contract via email from Defendant’s agent in December 2011, which showed a principal investment amount of $30,000, including $1,000 in profits purportedly earned on her initial investment, and a guaranteed return of $60,000 in 90 days.

The investor never got paid, despite repeated requests, the CFTC said. The agent’s name was not disclosed.