Sunday, January 11, 2009

Illinois Forex Trading Execs Arrested On Ponzi Scheme Allegations

On Wednesday, Federal authorities arrested two principals of Winnetka, Illinois-based One World Capital Group, LLC, on allegations that they ran a Ponzi-type foreign exchange investment fraud scheme that bilked investors of some $15 million, according to reports. The two executives, Charles G. Martin, 43, of Glencoe, Illinois and Malibu, California and John E. Walsh, 60, of Lake Forest, Illinois, are accused of improperly diverting investment funds for their own use money "to finance a lavish and extravagant lifestyle." Records indicate that Martin alone spent $1 million at strip clubs and restaurants. The Commodities Futures Trading Commission shut the company down and froze its assets in December 2007 following numerous complaints from clients who could not take their money out. Martin and Walsh have each been charged with one count of wire fraud which carries a maximum sentence of 20 years in prison, plus a fine of $250,000 if convicted. We believe prosecutors are likely to add charges in an amended complaint.

Read the story here, here and here.

Read the DOJ press release here.

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