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CFTC Forex Fraud Case Ends With $5 Million Penalty for Son

April 26 (Bloomberg) -- Peter Son, a California man, and his companies SNC Asset Management and SNC Investments were ordered by a court to pay a $5 million civil penalty in a foreign-exchange fraud case brought by the Commodities Futures Trading Commission.

Son solicited $85 million from 500 customers for foreign exchange trading that he falsely claimed was profitable, the CFTC said in an e-mailed statement today. Rather than trade for customers, Son used the money to pay earlier investors in the Ponzi scheme and for mortgage debt, country club dues and payments to his wife, the agency said.

The April 19 order by U.S. District Judge Maxine Chesney in San Francisco resolves a CFTC lawsuit against Son. He pleaded guilty in 2010 to a related criminal case and was sentenced to 15 years in prison and ordered to pay $60 million in restitution, the agency said.

The civil case is CFTC v. Son, 09-2555, U.S. District Court, Northern District of California (San Francisco).

To contact the reporter on this story: Karen Gullo in San Francisco at kgullo@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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