Massachusetts Resident Agrees to Pay $400,000 to Settle SEC Forex Fraud Charges

The U.S. Securities and Exchange Commission (SEC) has announced settled fraud charges against Jonathan Webb, a Massachusetts resident, for defrauding investors in forex investments. Among the victims were low-income cemetery workers. Webb has agreed to pay nearly $400,000 in monetary relief.

According to the SEC’s complaint, between at least January 2021 and August 2023, Webb solicited approximately $1.7 million from at least 34 individuals for forex investment purposes. He claimed that their investments would be doubled within a year through the foreign currency exchange (Forex) market. Webb allegedly guaranteed the return of both the principal and any earned interest. For those unable to afford the high investment threshold, Webb helped secure personal loans to enable their participation.

The SEC alleged that Webb converted investor funds into crypto assets, which were subsequently transferred to overseas brokerage firms offering leverage of up to 500:1. Using an algorithmic trading program purchased online, Webb lost hundreds of thousands of dollars. Despite these losses, he continued soliciting funds, promising high returns and falsely assuring the return of capital.

By August 2023, the majority of the investor funds had been lost. Additionally, the SEC accused Webb of using investor funds to pay earlier investors in a Ponzi-like manner and misappropriating money for personal expenses.

Without admitting or denying the allegations, Webb has agreed to a permanent injunction against violations of securities laws provisions and a conduct-based injunction. He will pay disgorgement of $250,753, plus $29,391 in prejudgment interest, and a civil monetary penalty of $118,225.