UBS Diversified Growth & Oxford Global Were Massive Ponzi Scheme Says SEC

November 26, 2009 – Trevor G. Cook and Patrick J. Kiley, both Minnesota residents, allegedly operated a foreign currency investment scam through their four main entities: UBS Diversified Growth LLC, Universal Brokerage FX Management LLC, Oxford Global Advisors LLC, and Oxford Global Partners LLC. According to the complaint filed by the SEC this week, Cook and Kiley ran a Ponzi scheme, which took in over $190 million and had at least 1,000 investors.

The SEC alleges that from July 2006 through July 2009, Cook and Kiley enticed over 1,000 investors by promising annual returns of 10-12%. Cook and Kiley promised their clients that their money would be kept in separate accounts for each individual and invested in foreign currency trading. In reality, the SEC claims investor money was pooled together and deposited into the accounts of various entities controlled by Cook and Kiley.

According to the complaint, Cook and Kiley moved $108 million through their various entities and did use a portion of that money for foreign currency trading, but this resulted in losses of $48 million. The SEC claims that Cook and Kiley pocketed $42.8 million for personal use, including $18 million used to purchase ownership interests in two trading companies, $12.8 million, which was moved to Panama, ostensibly for the construction of a casino, $2.8 million to purchase the Van Dusen Mansion, and $4.8 million, which Cook lost gambling. Also, it is alleged that nearly $51 million was used to make payments to prior investors in a Ponzi-like fashion.

The SEC also named several other Cook and Kiley entities as relief defendants: Basel Group LLC, Crown Forex LLC, Market Shot LLC, PFG Coin and Bullion, Oxford FX Growth L.P., Oxford Global FX LLC, Oxford Global Managed Futures Fund L.P., UBS Diversified FX Advisors LLC, and UBS Diversified FX Management LLC. Two individuals, Clifford and Ellen Berg, who received investor funds from Cook, were also named as relief defendants.

The U.S. District Court for the District of Minnesota issued full and partial asset freeze orders against all defendants and relief defendants. A hearing is scheduled on December 4, 2009 for further proceedings.

None of the entities sued by the SEC using the UBS name are related to or affiliated with UBS, AG, the Switzerland-based financial services firm.

Source: SEC

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If you are a UBS Diversified Growth, Oxford Global, and/or Trevor G. Cook and Patrick J. Kiley Investor/Victim or the victim of some other type of investment fraud, the Law Offices of Keith L. Miller, and its affiliates, is prepared to review your situation and potential claim(s) without charge, and will consider representing you on a contingent fee basis, which means that you will not have to pay out of pocket for your legal representation. The firm will take a fee only if we are successful in recovering your assets.

If you would like a free confidential initial consultation, please contact this office by calling (617) 523-5803, or Click Here to send a confidential email.