Ray M. White, Commodities Fraud, Texas 2008

Commodities Fraud Scheme Exposed in Mansfield, Texas

A shocking case of commodities fraud has come to light in Mansfield, Texas, as Ray M. White, 51, pleaded guilty to one count of commodities fraud in a federal court. White, the operator of CRW Management LP, admitted to cheating and defrauding an investor out of $50,000 in July 2008.

According to court documents, White made several misrepresentations to the investor, including claiming that his funds would be used to trade off-exchange foreign currency contracts and that CRW averaged 7 percent per week returns through off-exchange foreign currency trading. However, White admitted that these account statements were false and that he did not maintain separate bank accounts for the investors.

The investigation revealed that the vast majority of the funds were never used to trade off-exchange foreign currency. White admitted to misappropriating investor funds or paying them to other investors in the form of Ponzi payments. Furthermore, White lost more than $86,500 on off-exchange foreign currency trading, rather than making the 7 percent per week profits he claimed.

The U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) filed emergency civil enforcement actions against White in March 2009, alleging that he solicited at least $10.9 million from more than 250 investors to trade in the foreign currency market. The SEC and CFTC court documents state that CRW never traded off-exchange foreign currency, and that White used at most $93,900 of the $10.9 million he raised to trade in the foreign currency market.

White faces a maximum prison sentence of 10 years and a maximum fine of $1 million. He is scheduled to be sentenced by U.S. District Court Judge Barbara M.G. Lynn on September 17, 2010. The case is part of President Barack Obama's Financial Fraud Enforcement Task Force, which aims to investigate and prosecute financial crimes.

The Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement. White's scheme highlights the importance of vigilance in protecting investors and preventing financial fraud.

Source: https://www.justice.gov/archives/opa/pr/mansfield-texas-man-pleads-guilty-commodities-fraud-involving-foreign-currency-trading-ponzi