Perry Jay Griggs and his wife, Rachelle Griggs, are facing charges related to a multi-million dollar commodity futures Ponzi scheme that operated from at least 2005 through 2009. The U.S. Commodity Futures Trading Commission (CFTC) filed an enforcement action against the couple and their company, Aloha Trading Company, Inc., on October 28, 2010, in the U.S. District Court for the District of Hawaii.
The CFTC alleges that Perry Griggs, a convicted felon, initiated the fraudulent scheme while serving a federal prison sentence for prior wire fraud and money laundering convictions in California. He solicited investments from fellow inmates, while Rachelle Griggs targeted families of prisoners and the general public. Many of the victims resided in Hawaii due to the origin of many inmates at the prison where Perry Griggs was held.
According to the complaint, the Griggses falsely claimed Perry Griggs was a successful commodity futures trader imprisoned for tax evasion. They guaranteed returns to investors, leading many to refinance homes or liquidate retirement accounts to invest with Aloha. However, the defendants lost 83 percent of investor funds through futures trading and misappropriated approximately one-third of the $3 million received for personal expenses, including luxury car leases, a Hawaiian home, jewelry, and a private jet.
Perry Griggs was released from prison in 2009 but disappeared with his wife in January 2010, violating the terms of his parole. An outstanding warrant remains for his arrest. The CFTC is seeking restitution, disgorgement of ill-gotten gains, civil monetary penalties, trading and registration bans, and permanent injunctions. The U.S. Attorney’s Office for the District of Hawaii also filed criminal indictments against Perry and Rachelle Griggs on October 28, 2010, charging them with fraud in connection with the scheme.
The case is the result of a cooperative enforcement investigation involving the CFTC, the FBI, the U.S. Attorney’s Office for the District of Hawaii, and the State of Hawaii Department of Commerce and Consumer Affairs.
Source: CFTC.gov
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