Whileon Chay's 4X Solutions Ponzi Scam Hit with $10m Court Order

Millions of dollars Chay raised for FX trading were reportedly actually used to have his wife cryogenically frozen after she

The U.S. Commodity Futures Trading Commission (CFTC) just announced that on January 29, 2016 a New York court ordered 4X Solutions, Inc. (4X) and its principal, Whileon Chay, to disgorge $2,745,226 and pay a civil monetary penalty of $8,235,678 in connection with a forex trading Ponzi scheme.

The court found that Chay and 4X fraudulently solicited $4.8 million from at least 19 pool participants by falsely enticing prospective participants with the prospect of earning returns of 24 percent to 36 percent per year and claiming the ability to profit even in adverse market conditions, “when most have lost and lost dearly.” The court also found that Chay and 4X minimized the risks of forex trading, claiming, for example, that the firm had not suffered a single losing month in 14 years and that 4X provides “a safe haven in our current financial environment.”

According to court, Chay lost approximately $1,985,754 trading forex and misappropriated $2,745,226 to pay for his personal expenses, trade securities, fund 4X’s operations, and make purported profit and investment return payments to pool participants. As we reported back in September 2014, the “personal expenses” were used to fund Chay’s lavish lifestyle, coupled with the cryogenic freezing of his dead wife.

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The judge ordered that Chay and 4X disgorge the $2,745,226  as well as pay a civil monetary penalty of $8,235,678, three times the amount misappropriated. However, the CFTC warns victims that such disgorgement orders may not result in the recovery of money lost because the sides involved may not have sufficient funds or assets.

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