Matthew Sample of San Diego raised around $1 million, mainly from New Mexico investors, then fraudulently diverted one-third of the funds to himself, according to the Securities and Exchange Commission.
According to the publication Albuquerque Business First, Sample has settled with the agency and is permanently barred for violating securities laws. A judge still has to decide what, if any, restitution, fines and penalties Sample must pay, according to the publication.
Sample provided false documents to the investors, appearing that his trading strategy was successful. A mini-Ponzi scheme raised its ugly head, too: Sample raised money from a new investor under false pretenses, says the securities agency, and used that investor's funds to make a partial repayment to other investors.