Forex Ponzi Schemer Sentenced to 10 Years
In a release by the U.S. Commodities Futures Trading Commission (CFTC), Ray M. White and CRW Management LP (CRW) have been ordered to pay over $19 million for operating a foreign exchange market (FOREX) Ponzi scheme in a federal court consent order. White and CRW were ordered to pay $9,548,365 in disgorgement and White was ordered to pay a fine of $9, 548,365. Another order was entered requiring Christopher R. White and Hurricane Motorsports LLC to pay over $380,000 in disgorgement and return other money and property. All of the parties are from Mansfield, Texas.
Initially, the case started with a CFTC filing in 2009 alleging that the defendants were running a multi- million dollar FOREX Ponzi scheme. The filing was based on allegations that the defendants obtained over $11.9 million from investors for FOREX trading during the time period of November 2006 and November 2008. The 411 or so investors were told that they would get extraordinary returns on their investments because of CRW’s past success in FOREX trading. In fact, they were told that they should expect to receive returns of between 5% to 8% per week, or 260% to 416% on an annual basis.
Basically, all of the money from investors was misappropriated for the use of the defendants. White had limited knowledge and experience in FOREX trading and lost money when he did. The firm, CRW Management never did any FOREX trading. It was all lies and the money solicited from investors was converted to the personal use of White and others.
White pled guilty to one count of commodities fraud and was sentenced to 10 years in federal prison.