An investment adviser from the U.S. who promised returns as high as 4,000% per year through fraudulent trading schemes has been hit with default judgments totaling over $160,000 after failing to respond to federal fraud charges, the Securities and Exchange Commission (SEC) informed.
Robert Thompson and his company The Financial Freedom Foundation, operating as F3 Mastermind, promoted what they called risk-free investments that would generate returns ranging from 20% per week to an astronomical 4,000% annually.
A federal judge in Missouri's Western District ordered the defendants to pay almost $73 in disgorgement plus $18,000 in prejudgment interest, along with $36,000 civil penalties each.
The jaw-dropping 4,000% return promise which would turn $10,000 into $410,000 in just one year was central to Thompson's pitch to investors seeking passive income. Between 2019 and 2022, Thompson operated F3 Mastermind as a membership group where investors paid initial and monthly fees, then received recommendations for investments in programs claiming these impossible returns.
Thompson told the member that the investment was a compound trading program that would generate returns of 20% per month, compounded every month for 36 months. Thus, according to Thompson, the investment would generate returns of at least 600% over 36 months, SEC commented in the official statement.
But his marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term materials went even further, touting opportunities that could deliver the staggering 4,000% annual returns.
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Prime Bank Schemes Target Victims
The schemes bore hallmarks of prime bank fraud a type of scam that typically promises extraordinary returns from trading in fictitious financial instruments. F3 Mastermind members collectively invested at least $2 million in these programs after receiving Thompson's recommendations.
Thompson built credibility by presenting himself as a graduate of an elite business school and member of Mensa. He used promotional videos posted on YouTube and public portions of F3 Mastermind's website to tout his supposed expertise and years of experience as a professional investor.
One F3 Mastermind member invested $300,000 in what Thompson called the First Prime Bank Scheme based on his recommendation. Thompson had told this investor the opportunity represented good Level 1 investing and that he had extensive experience with similar investments.
Related: How One Trader's Spoofing Scheme Cost Him $357K in Penalties
Pattern of Failed Promises
When early investments failed to deliver the promised returns, Thompson simply recommended new schemes. After one member's $300,000 investment proved unsuccessful in 2020, Thompson pitched additional investments in what the SEC labeled the Second Prime Bank Scheme and later the Third Prime Bank Scheme.
Thompson continued promoting these opportunities even as previous investments collapsed. By 2021, F3 Mastermind's website still advertised that with a gold level membership, members could access Level 1 Managed Buy/Sell Programs that pay 10% per month or more.
Relief Defendant Also Ordered to Pay
The court also entered a default judgment against Brandon Stucki, designated as a relief defendant who received almost $10,000 in ill-gotten gains plus $2,689 in prejudgment interest. Relief defendants typically receive funds from fraudulent schemes but aren't accused of participating in the underlying misconduct.
Thompson and F3 Mastermind never filed responses to either the original complaint filed in May 2024 or an amended version filed in November. Their failure to engage with the legal proceedings led to the default judgments entered August 14.
The defendants are now permanently barred from violating federal securities laws, including anti-fraud provisions of the Securities Act, Securities Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Act, and Investment Advisers Act.
An investment adviser from the U.S. who promised returns as high as 4,000% per year through fraudulent trading schemes has been hit with default judgments totaling over $160,000 after failing to respond to federal fraud charges, the Securities and Exchange Commission (SEC) informed.
Robert Thompson and his company The Financial Freedom Foundation, operating as F3 Mastermind, promoted what they called risk-free investments that would generate returns ranging from 20% per week to an astronomical 4,000% annually.
A federal judge in Missouri's Western District ordered the defendants to pay almost $73 in disgorgement plus $18,000 in prejudgment interest, along with $36,000 civil penalties each.
The jaw-dropping 4,000% return promise which would turn $10,000 into $410,000 in just one year was central to Thompson's pitch to investors seeking passive income. Between 2019 and 2022, Thompson operated F3 Mastermind as a membership group where investors paid initial and monthly fees, then received recommendations for investments in programs claiming these impossible returns.
Thompson told the member that the investment was a compound trading program that would generate returns of 20% per month, compounded every month for 36 months. Thus, according to Thompson, the investment would generate returns of at least 600% over 36 months, SEC commented in the official statement.
But his marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term materials went even further, touting opportunities that could deliver the staggering 4,000% annual returns.
You may also like: Dead Fraudster's Widow Pays $3.8M to Victims of $29M Ponzi Scheme
Prime Bank Schemes Target Victims
The schemes bore hallmarks of prime bank fraud a type of scam that typically promises extraordinary returns from trading in fictitious financial instruments. F3 Mastermind members collectively invested at least $2 million in these programs after receiving Thompson's recommendations.
Thompson built credibility by presenting himself as a graduate of an elite business school and member of Mensa. He used promotional videos posted on YouTube and public portions of F3 Mastermind's website to tout his supposed expertise and years of experience as a professional investor.
One F3 Mastermind member invested $300,000 in what Thompson called the First Prime Bank Scheme based on his recommendation. Thompson had told this investor the opportunity represented good Level 1 investing and that he had extensive experience with similar investments.
Related: How One Trader's Spoofing Scheme Cost Him $357K in Penalties
Pattern of Failed Promises
When early investments failed to deliver the promised returns, Thompson simply recommended new schemes. After one member's $300,000 investment proved unsuccessful in 2020, Thompson pitched additional investments in what the SEC labeled the Second Prime Bank Scheme and later the Third Prime Bank Scheme.
Thompson continued promoting these opportunities even as previous investments collapsed. By 2021, F3 Mastermind's website still advertised that with a gold level membership, members could access Level 1 Managed Buy/Sell Programs that pay 10% per month or more.
Relief Defendant Also Ordered to Pay
The court also entered a default judgment against Brandon Stucki, designated as a relief defendant who received almost $10,000 in ill-gotten gains plus $2,689 in prejudgment interest. Relief defendants typically receive funds from fraudulent schemes but aren't accused of participating in the underlying misconduct.
Thompson and F3 Mastermind never filed responses to either the original complaint filed in May 2024 or an amended version filed in November. Their failure to engage with the legal proceedings led to the default judgments entered August 14.
The defendants are now permanently barred from violating federal securities laws, including anti-fraud provisions of the Securities Act, Securities Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Act, and Investment Advisers Act.
