Dennis Todd Hagemann
What poor gullible soul wrote a $50,000 check and gave it to Dennis Todd Hagemann to trade in a Forex account?
It all started a year ago when Hagemann approached Paul and Alice Groff at their children's soccer game and asked for a $50,000 investment. He claimed that he "trades for one hour every day and produces high-percentage returns."
Unbelievably, the Groffs wrote the check. Hagemann cashed it the next day and used the money to pay Jeffrey Waters, whose money he had previously lost with this scam which involved a complicated series of money transfers – involving at least two banks and three companies.
When the Groffs discovered what he had done with their investment, they went to the authorities.
Enter CFTC...
The U.S. Commodity Futures Trading Commission (CFTC) today announced that it obtained a federal default judgment order requiring defendants Dennis Todd Hagemann and his company, Yellowstone Partners, Inc. (Yellowstone), both of Raleigh, N.C., to pay more than $1.6 million in restitution and civil monetary penalties for defrauding investors in a foreign currency (forex) Ponzi scheme (see CFTC Press Release 5795-10, March 15, 2010).
The order, entered by Chief U.S. District Judge Louise W. Flanagan of the U.S. District Court for the Eastern District of North Carolina, requires Hagemann and Yellowstone jointly and severally to pay restitution of $827,779 and a civil monetary penalty of $827,779. The order also permanently prohibits defendants from engaging in any commodity-related activity and from registering with the CFTC in any capacity.
You can get CFTC's side of the story here.
Can you believe this guy used to drive an Aston Martin?