Georgia Man and Corporation Allegedly Ripped Off 120 Investors

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that it charged James Ossie of Atlanta, Georgia, and his company CRE Capital Corporation(CRE) of Alpharetta, Georgia with operating a Ponzi scheme involvingmore than 100 people and approximately $25 million in connection withforeign currency transactions (forex). Ossie resides in Dawsonville,Georgia and is president and sole owner of CRE; neither has ever beenregistered with the CFTC.

According to the CFTC’s complaint, Ossie and CRE promised poolparticipants that they would earn a 10 percent return on their moneywithin 30 days by trading United States and Japanese currency pairs.The complaint further alleges that since June 18, 2008, rather thanmaking money for pool participants, Ossie and CRE lost approximately$4.4 million trading forex. Finally, the complaint alleges that Ossieand CRE operated a Ponzi scheme, in which forex trading “profits” wereactually paid from the principal of subsequent pool participants.

“Investors must run the other way when approached by anyone claimingto guarantee exorbitant monthly returns, like those promised by CRE andOssie. Such representations should raise an immediate red flag thatsuch investment is too good to be true,” said CFTC Acting Director ofEnforcement Stephen J. Obie. “We are seeing an uptick in Ponzi schemecases because, in this economic climate, new investors cannot be foundto perpetuate the scheme. As these schemes collapse, the CFTC will moveswiftly to prosecute those who harm innocent investors.”

This is the first case brought by the CFTC’s Forex Enforcement Task Forceunder the new powers granted to the Commission under the Food,Conservation, and Energy Act of 2008 (see CFTC Press Release 5530-08,August 11, 2008).