HONOLULU, HI – February 19, 2009 – The U.S. Commodity Futures Trading Commission (CFTC) today announced charges against Marvin Cooper of Honolulu, Hawaii, alleging he operated a $4.4 million Ponzi scheme targeting over 125 Deaf individuals in the United States and Japan. Cooper, along with his company Billion Coupons, Inc. (BCI), is accused of misappropriating customer funds for personal expenses.
According to the CFTC complaint, beginning in at least September 2007, Cooper and BCI solicited investments from members of the Deaf community with promises of 15 to 25 percent monthly returns through forex and commodity futures trading. The agency alleges these claims were false, and the “profits” paid to early investors were simply taken from funds contributed by new investors – the hallmark of a Ponzi scheme.
The CFTC claims Cooper misappropriated over $1.4 million in customer funds for personal use, including purchases of computer equipment, flying lessons, and a $1 million home. Approximately $1.6 million was allegedly returned to customers as “profits” and commissions to those recruiting new investors.
“This case is a clear example of affinity fraud,” stated CFTC Acting Director of Enforcement Stephen J. Obie. “Cooper preyed upon the Deaf community to leverage and exploit the inherent trust within so that his scheme would prosper.”
The CFTC obtained an emergency court order on February 18, 2009, freezing Cooper and BCI’s assets and appointing Barry Fisher as a temporary receiver to oversee the recovery of funds. A hearing is scheduled for March 2, 2009, before the U.S. District Court of Hawaii to determine a preliminary injunction.
The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, and permanent injunctions against Cooper and BCI. Victims are encouraged to contact the temporary receiver at (310) 557-1077. The Securities and Exchange Commission (SEC) has also filed a related emergency action against Cooper and BCI, and the CFTC acknowledges the assistance of the Hawaii Department of Commerce and Consumer Affairs.
Source: CFTC.gov
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