Commodity Futures Trading Commission sues Encinitas man - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Commodity Futures Trading Commission sues Encinitas man

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SAN DIEGO (AP) — A Southern California man who pleaded guilty to running a multimillion-dollar investment scam is now facing a lawsuit.

The U.S. Commodity Futures Trading Commission said Tuesday that it has sued Scott Bottolfson of Encinitas in San Diego federal court.

Regulators say he got 30 people to invest in pools to trade commodity futures contracts and options, falsely claiming they were safe, high-return deals.

In fact, authorities say he lost nearly a third of the $3 million he invested and spent the rest on himself and on paying some investors phony profits in a classic Ponzi scheme. They're seeking restitution and fines.

His attorney, Michael Lipman, says Bottolfson pleaded guilty last fall to federal fraud charges and could face up to 20 years in prison next month.

 

Copyright 2011 The Associated Press.

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