SEC Obtains Default Judgment in $2 Million F3 Mastermind Fraud Case

The U.S. Securities and Exchange Commission (SEC) has secured a final judgment by default against Missouri resident Robert M. Thompson and his private entity, The Financial Freedom Foundation, operating as F3 Mastermind, for defrauding investors through three unregistered securities offerings. The U.S. District Court for the Western District of Missouri also entered judgment against the relief defendant, Brandon K. Stucki, for receiving ill-gotten gains to which he had no legitimate claim.

According to the SEC’s complaint filed on May 3, 2024, Thompson marketed F3 Mastermind as a private membership group requiring initial and monthly fees. Members were offered access to trading programs run by third parties, which falsely promised “risk-free” returns ranging from 20% weekly to 4,000% annually. Between 2019 and mid-2022, investors contributed at least $2 million to these prime bank-like schemes.

The court ordered Thompson and F3 Mastermind to pay $72,946 in disgorgement and $18,005 in prejudgment interest, jointly and severally, along with $36,000 in civil penalties each. Stucki was ordered to pay $9,994 in disgorgement plus $2,689 in prejudgment interest.

The SEC remains active in pursuing enforcement actions against fraudulent schemes that prey on retail investors. Just days ago, the Commission charged a self-styled trading “luminary” for allegedly defrauding over 50 investors through an offering scheme that raised more than $600,000.