Sun, Feb 19, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

CFTC, SEC bring charges on two Ponzi schemes, off-exchange forex scheme

Thursday, September 20, 2012

Bailey McCann, Opalesque New York: The Commodities Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) filed complaints on two separate Ponzi schemes, operating in Missouri and Georgia. The CFTC filed a federal civil enforcement action in the U.S. District Court for the Eastern District of Missouri, Eastern Division, charging Grahame Rhodes of St. Louis, Missouri, with fraud in connection with operating a decade-long, multi-million dollar commodity pool Ponzi scheme. The SEC also announced charges against a private fund manager and his Atlanta-based investment advisory firm for defrauding investors in a purported "fund-of-funds" and then trying to hide trading losses by creating new private funds to make money to pay back the original fund investors.

According to the CFTC complaint, Rhodes operated a Ponzi scheme that specifically targeted his family and friends and fraudulently obtained at least $2.1 million from at least 12 individuals to trade commodity futures in a pooled investment account. Rhodes was never registered with the CFTC in anyway. Rhodes allegedly solicited prospective pool participants by pretending to be a successful, but cautious, trader who earned annual rates ranging between 20 and 50 percent trading E-mini S&P futures contracts. In reality, he consistently lost money and made fraudulent representations about his firm and his activities to keep the scheme alive.

The SEC is seeking an emergency court order to freeze t......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. With $54bn in assets, Philippines is ready for hedge funds, alternative investment products[more]

    Komfie Manalo, Opalesque Asia: With the country's outstanding fund management industry at $54bn and growing, the Philippine market and its investors are ready to invest in "more sophisticated" asset management products, like hedge funds and alternative investments, said Deanno J. Basas, presi

  2. SoftBank to buy Fortress Investment for $3.3bn[more]

    From Reuters.com: Japan's SoftBank Group Corp on Wednesday said it has agreed to buy Fortress Investment Group LLC for about $3.3 billion, looking to add investment expertise as it prepares to launch the world's largest private equity fund. The all-cash deal is SoftBank's first major investmen

  3. ...And Finally - Truth in advertising[more]

    From Newsoftheweird.com: Girl Scout Charlotte McCourt, 11, of South Orange, New Jersey, saw her sales zoom recently when she posted "brutally honest" reviews of the Scouts' cookies she was selling -- giving none of them a "10" and labeling some with dour descriptions. She was hoping to sell

  4. Europe - Brexit - Updated legal guide, Euro exchange rates set to tumble as hedge fund's super computer predicts Marine Le Pen will be next French president, Swiss fund market hits all-time high[more]

    Brexit - Updated legal guide From Herbertsmithfreehills.com: When we began analysing in depth the possibility of Britain exiting the EU (Brexit), 18 months prior to the June 2016 referendum, the business consensus was very much that Brexit was a remote prospect that either would never hap

  5. People - Gramercy appoints Bradshaw McKee as managing director of Capital Solutions, Trump taps Cerberus's Feinberg to lead intelligence review[more]

    Gramercy appoints Bradshaw McKee as managing director of Capital Solutions Gramercy Funds Management LLC, a $5.8 billion dedicated emerging markets investment manager, today announced the appointment of Bradshaw McKee to the position of Managing Director, Capital Solutions and Distressed