Beverly Hills Man Settles Fraud Case

A federal regulator says it has fined a California man in the settlement of a fraud case and barred him from trading commodity futures and options.

The Commodity Futures Trading Commission on Wednesday announced the settlement of an action against Ronald G. Scott of Beverly Hills.

In the settlement, Scott was ordered to reimburse customers up to $810,000 and pay a penalty of up to $110,000.

By settling, Scott didn’t admit or deny the allegations.

The CFTC charged Scott two years ago with fraudulently offering commodity options contracts to the public as co-principal of Madison Financial Group.

The agency said the firm previously settled with the CFTC.

The CFTC alleged that company employees at the direction of Scott fraudulently solicited customers to trade commodity options using a number of misrepresentations.