Georgia Court Orders CRE Capital Corp. and its Owner James G. Ossie to Pay $25.7 Million in Forex Ponzi Scheme
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced that it obtained $25.7 million in civil monetary penalties and restitution in a federal court consent order against CRE Capital Corporation (CRE) and its president and owner, James G. Ossie of Dawsonville, Ga.
The order resolves a CFTC enforcement action brought on January 15, 2009, that charged the defendants with operating a $25 million foreign currency Ponzi Scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term involving more than 100 customers (see CFTC Press Release 5598-09, January 15, 2009). On the same day the CFTC filed its action, the Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) filed a parallel action against CRE and Ossie.
The order entered by U.S. District Court Judge Richard W. Story of the Northern District of Georgia requires CRE to pay $5.7 million in restitution to defrauded customers and a $15.2 million civil monetary penalty. The order also requires Ossie to pay a $4.8 million civil penalty. The order imposes permanent trading and registration bans on CRE and Ossie.
Last year, Ossie pled guilty to criminal charges based on the same conduct alleged in the CFTC’s complaint. On July 30, 2009, Ossie was sentenced to 82 months in prison and ordered to pay more than $18.7 million in criminal restitution to the victims of his scheme (see U.S. Department of Justice Press Release, July 30, 2009).
The CFTC acknowledges the assistance of the SEC’s Atlanta office in investigating this matter.
CFTC Division of Enforcement staff members responsible for this action are Daniel C. Jordan, Rick Glaser and Richard Wagner.
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enfcrecomplaint011509
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced that it obtained $25.7 million in civil monetary penalties and restitution in a federal court consent order against CRE Capital Corporation (CRE) and its president and owner, James G. Ossie of Dawsonville, Ga.
The order resolves a CFTC enforcement action brought on January 15, 2009, that charged the defendants with operating a $25 million foreign currency Ponzi Scheme Ponzi Scheme A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and A Ponzi scheme is a scam that looks to lure investors, ultimately paying profits to earlier investors with funds from more later investors.This form of fraud tricks victims into believing that products are instead generated from product sales or other means. In actuality, most investors are completely oblivious to the actual origin of incoming funds.One of the central attributes of a Ponzi scheme is the necessity of its ongoing nature, which is dependent on a steady flow of new contributions and Read this Term involving more than 100 customers (see CFTC Press Release 5598-09, January 15, 2009). On the same day the CFTC filed its action, the Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) filed a parallel action against CRE and Ossie.
The order entered by U.S. District Court Judge Richard W. Story of the Northern District of Georgia requires CRE to pay $5.7 million in restitution to defrauded customers and a $15.2 million civil monetary penalty. The order also requires Ossie to pay a $4.8 million civil penalty. The order imposes permanent trading and registration bans on CRE and Ossie.
Last year, Ossie pled guilty to criminal charges based on the same conduct alleged in the CFTC’s complaint. On July 30, 2009, Ossie was sentenced to 82 months in prison and ordered to pay more than $18.7 million in criminal restitution to the victims of his scheme (see U.S. Department of Justice Press Release, July 30, 2009).
The CFTC acknowledges the assistance of the SEC’s Atlanta office in investigating this matter.
CFTC Division of Enforcement staff members responsible for this action are Daniel C. Jordan, Rick Glaser and Richard Wagner.
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enfcrecomplaint011509