Mansfield, TX – Ray M. White was sentenced to 10 years in federal prison and ordered to pay over $19 million in penalties for operating a multi-million dollar Ponzi scheme, the U.S. Commodity Futures Trading Commission (CFTC) announced on October 11, 2011. The case, originating from a complaint filed in the U.S. District Court for the Northern District of Texas on March 4, 2009, alleged White and his company, CRW Management LP (CRW), defrauded over 400 customers.
The CFTC’s investigation revealed that from November 2006 through November 2008, White and CRW solicited more than $11.9 million from customers with the false promise of high returns – between 5 and 8 percent weekly, or 260 to 416 percent annually – through forex trading. However, the agency found that CRW never actually engaged in forex trading and White lost money in limited trading attempts.
Instead, White operated a Ponzi scheme, using funds from new investors to pay earlier investors, and misappropriated millions of dollars for personal use. A consent order entered on October 5, 2011, requires White and CRW to jointly pay $9,548,365 in disgorgement, with White personally responsible for a $9,548,365 civil monetary penalty.
In addition to White’s prison sentence and financial penalties, relief defendants Christopher R. White and Hurricane Motorsports were also held accountable. A separate consent order on September 27, 2011, mandated they pay over $380,000 in disgorgement and relinquish their rights to assets held by the court-appointed receiver, Timothy A. Mack.
The CFTC emphasized that the case was part of President Barack Obama’s Financial Fraud Enforcement Task Force. The agency acknowledged the assistance of the Fort Worth Regional Office of the Securities and Exchange Commission in the investigation.
Source: CFTC.gov
Related Federal Cases
- Carie Hallford, Body Decomposition Scheme, California 2023 · Texas
- Juan A. Tony Marrero, Medicare Fraud Scheme, Miami FL, 2023 · Texas
- Tren de Aragua Leaders Unsealed, Terror Cartel Crimes, Texas, 2023 · Nebraska
- Eduardo Ravelo, Racketeering Conspiracy, Texas 2013 · Texas
- John McClure, Contractor Fraud Scheme, NY, 2023 · Texas
