Christopher Cornett, 43, and his accomplice, Heidi Beyer, 49, were sentenced to 40 and six years of prison, respectively, for perpetrating a fraudulent investment scheme that stole over $10 million from more than 100 investors.
This was not Cornett’s first conflict with the law. In 2003 he lost his stockbroker license, and was subsequently sentenced to three years in prison, for stealing the money of a customer while affiliated with a securities broker-dealer firm. Shortly upon his release from prison, Cornett concocted a new scheme, which involved forex trading.
Cornett managed to convince his victims – investors in Texas and elsewhere coming from all walks of life – that he was a brilliant forex trader. He told investors he never had a single month when he lost money trading foreign currencies. According to the federal prosecutors, he in fact never had a single month when he made money in forex trading.
Cornett and Beyer were ordered to pay back the money they stole from their victims. However, with both going to prison for many years, it is doubtful the investors will see much of a restitution.
In related court proceedings, the Commodities and Futures Trading Commission (“CFTC”) also sued and obtained a default judgment against Cornett, Beyer, and the investment businesses they used to perpetrate their fraud.