Canadian horse trader and Bedford firm fined in Ponzi scam
WASHINGTON — The Securities and Exchange Commission reported that the U.S. District Court for the District of New Hampshire has entered a $2.8 million final judgment, by default, against a New Hampshire company and a Canadian horse trader for their roles in a Ponzi scheme uncovered last year.
Henry Roche, a Canada resident who ran Bedford, N.H.-based New Futures Trading International Corp., was ordered to pay $1.4 million for his role in the investment scheme where Roche offered high returns on investments and defrauded at least 14 investors in nine states, the SEC said in a news release Tuesday.
Roche was accused of using more than $900,000 to make payments to early Ponzi investors, in order to attract more investors, and of absconding with $359,000 to support his lifestyle, which included a horse-breeding venture, and to buy horses.
The SEC, along with the Ontario Securities Commission, uncovered the scheme in November and froze the assets of Roche and the company. Permanent injunctions have been issues against Roche and New Futures barring them from soliciting or accepting investors’ money, and from actions that would result in future SEC violations, the SEC said.
New Futures was also ordered to pay $1.4 million, and both Roche and New Futures have been ordered to pay $150,000 fines.
The SEC alleged in November that Roche, through New Futures, had been engaged in an ongoing, unregistered offering of securities in the United States through operations in New Hampshire and Ontario, Canada. The SEC said Roche, since December 2010, had raised more than $1.3 million from investors and promised sales of high-yield promissory notes purportedly yielding 5 percent to 10 percent per month, or a 200 percent return within 14 months.
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