GRAND PRAIRIE, TX – Rodney Wagner and his brother, Roger Wagner, were ordered to pay $2.42 million in restitution and penalties for operating a multi-million dollar foreign currency (forex) Ponzi scheme, the U.S. Commodity Futures Trading Commission (CFTC) announced on February 6, 2013. The brothers, operating through their company GID Group, Inc. (GID), defrauded approximately 99 customers out of at least $5.5 million.
The U.S. District Court for the Northern District of Texas, under Judge David C. Godbey, issued a consent order requiring the Wagner brothers and GID to jointly pay $1.37 million in restitution to the victims and a $1.05 million civil monetary penalty. The order also permanently bans the Wagner brothers from engaging in any future trading or registration activities with the CFTC.
According to the CFTC’s complaint, filed November 8, 2011, the Wagners falsely claimed to be experienced and successful forex traders capable of generating daily returns of six percent. They promised customers a return of principal plus 200 percent of their deposits. However, the CFTC investigation revealed these claims were entirely false.
The Wagners only transferred $590,000 of customer funds into trading accounts and consistently incurred net trading losses each month. The majority of the $5.5 million collected was misappropriated for personal expenses and used to pay earlier investors, characteristic of a Ponzi scheme. To maintain the illusion of profitability, the Wagners distributed fabricated account statements to customers, falsely reporting returns earned through forex trading.
Neither Rodney Wagner, Roger Wagner, nor GID were ever registered with the CFTC. The case was led by CFTC Division of Enforcement staff including Eugene Smith, Patricia Gomersall, Melanie Devoe, Christine Ryall, Paul Hayeck, and Joan Manley.
Source: CFTC.gov
Related Federal Cases
- Jason Jarin, Medicaid Fraud and Illicit Transition Procedures, Texas 2023 · Texas
- Shannon Tecoko Mays, Conspiracy to Commit Wire Fraud, Texas, 2012 · Texas
- James Pavlounis, Social Security Administration Fraud and Tax Evasion, 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
