SEC Halts Foreign Exchange Offering Fraud by College Professor and Houston-Based Lawyer
Washington, D.C., May 26, 2009 — The Securities and Exchange Commission has obtained an emergency court order to freeze the assets of Texas A&M finance professor Robert D. Watson, Houston lawyer and certified public accountant Daniel J. Petroski, and two firms. They are charged with defrauding U.S. investors by using forged bank records to make it appear they were earning spectacular returns in foreign exchange trading.
The SEC’s complaint, filed in federal court in Houston, alleges that Watson and Petroski raised more than $19 million from investors and claimed they would earn profits through “Alpha One,” a foreign-currency trading software program purportedly owned by their firm PrivateFX Global One Ltd.
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