Atlanta, GA – James Ossie, 41, of Dawsonville, Georgia, has been charged with operating a $25 million Ponzi scheme through his company, CRE Capital Corporation (CRE), according to a complaint filed by the U.S. Commodity Futures Trading Commission (CFTC) on January 15, 2009.
The CFTC alleges that Ossie and CRE defrauded over 100 investors by promising a guaranteed 10 percent return on investment within 30 days through foreign currency (forex) trading. However, the complaint states that since June 18, 2008, Ossie and CRE actually lost approximately $4.4 million trading forex. To maintain the illusion of profitability, they reportedly operated a Ponzi scheme, using funds from new investors to pay purported “profits” to earlier participants.
“Investors must run the other way when approached by anyone claiming to guarantee exorbitant monthly returns,” stated Stephen J. Obie, CFTC Acting Director of Enforcement. “Such representations should raise an immediate red flag that such investment is too good to be true.” Obie also noted an increase in Ponzi scheme cases due to the difficult economic climate, making it harder to attract new investors and causing schemes to collapse.
This case marks the first brought by the CFTC’s Forex Enforcement Task Force, leveraging new powers granted by the Food, Conservation, and Energy Act of 2008. The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, and permanent injunctions against Ossie and CRE to prevent further violations of federal commodities laws.
The SEC has also filed a related action against Ossie and CRE. The CFTC staff involved in the case includes Daniel Jordan, James Deacon, William Small, Mike Loconte, Rick Glaser, and Richard Wagner.
Source: CFTC.gov
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