The Securities and Exchange Commission (SEC) has announced a settlement of fraud charges against former managing director of RSF Capital, LP, Chad Stickforth, alleging the misuse and misappropriation of millions of dollars raised from investors.。

The SEC filed suit in federal district court in Colorado on August 8, 2023, alleging that between December 2016 and September 2021, Stickforth raised about $5.4 million from 20 investors after telling them that RSF would use their funds to trade futures contracts, commodity interests and options on their behalf.。

The indictment alleges that Stickforth used only a small portion of the investor's funds to trade, and that he misappropriated or otherwise misused most of the investor's funds for personal expenses, payments to his business partners, and Ponzi scheme-like payments to investors to maintain profitable trading performance.。

Without admitting or denying the SEC's allegations, Stickforth agreed to make a final judgment permanently prohibiting him from violating the anti-fraud provisions of Section 17 (a) of the Securities Act of 1933 and Section 10 (b) of the Securities Act of 1933.。The Securities Exchange Act of 1934 and its sections 10b-5, as well as sections 206 (1) and 206 (2) of the Investment Advisers Act of 1940, impose permanent injunctions on officers and directors and order him to pay $1,546,197 of stolen money, pre-judgment interest, and a civil penalty of $223,229.。

Settlement agreement subject to court approval。