The U.S. Commodities Futures Trading Commission charged a South Florida couple with running a foreign currency exchange scam and a Ponzi scheme.
I know Charles Ponzi is rolling over in his grave because the civil charges filed in Fort Lauderdale federal court, alleged that David Ortiz and Loredana Ortiz misappropriated at least $232,000 of customer funds. That's right - only $232k!
The federal complaint alleges the Ortizes used companies called Goyep InternationalInc., Royal Returns Inc. and Natural Health Matters LLC in their schemes.
They are alleged to have “falsely represented to customers that their funds would be used to trade Forex” when in fact most of the money was used for personal expenses. Federal attorneys added the term Ponzi scheme because some investors were paid off with later investors’ payments.
The civil suit against the Ortizes and their companies seeks disgorgement of the funds, restitution, fines and a bar against further Forex trading.
Clearly, the Ortizes are not the criminals they aspired to be. Their antics pale in comparison to some of their predecessors nabbed by CFTC.
Charles Ponzi would have been proud of these guys, but not all Forex brokers are cut out to be a con artists. For $232,000 the Ortizes should have just tried to get a couple of honest jobs. Well, in this economy, maybe a couple of jobs each.
Update
From the CFTC Press Room.
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