Monday, March 16, 2009
Texas Man Sentenced To 10 Years For Ponzi Scheme Investment Fraud
George D. Hudgins, 57, of Nacogdoches, Texas, was sentenced to 10 years in prison for defrauding investors out of more than $70 million. According to the original complaint filed by the Commodities Futures Trading Commission, beginning in or about January 2005, Hudgins fraudulently solicited funds from more than 300 investors to pool and trade futures contracts by over inflating the investment track record and misappropriating investor funds. Hudgins in fact, lost money and used investor funds to pay "profits" to investors. In his investment promotional packet, Hudgins had claimed returns of as much as 99 percent annually. He plead guilty to three felony counts including wire fraud, money laundering and embezzlement
Read the CFTC complaint here.