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Texas Man Pleads Guilty in Criminal Forex Ponzi Scheme

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Jun 10, 2010 4:51 pm

Texas Man Pleads Guilty in Criminal Forex Ponzi Scheme

Let's start with some basic facts: Ray M. White was never registered with the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC). In fact, White was never registered to sell securities anywhere. Also, in 2003 and 2006 he filed for bankruptcy.


Knowing what you know about Mr. White, lemme ask you a question -- you gonna pull out yer checkbook and write him a big, fat one for his can't-lose FOREX trading program with promised annual returns of between 200 and 400 or so percent?

Hey, before you hurt yourself laughing, how about you control those chuckles and read on. It isn't all that funny. Really.

In a CFTC Complaint, the regulator charged that as early as November 2006, Defendant Ray M. White and Defendant CRW fraudulently told prospective investors that CRW would pool their funds and trade FOREX on their behalf, claiming that CRW would generate tremendous returns for investors of between five and eight percent weekly, or an annual return equivalent of between 260 and 416 percent.

Separately, the SEC alleged in its own Complaint that Defendant Ray White and Defendant CRW engaged in a fraudulent Ponzi scheme raising at least $10.9 million from approximately 250 investors in at least 22 states. Acting on behalf of CRW, Ray White promised investors that their money would be pooled into a "fund" and that they would receive profits from a lucrative foreign-currency trading program that he operated through CRW. Ray White led investors to believe that his special expertise at trading foreign currencies (FOREX) would yield exceptional returns. He claimed to achieve returns from 6.3% to 8.1% per week.

On June 8, 2010, U.S. Attorney James T. Jacks of the Northern District of Texas and Assistant Attorney General Lanny A. Breuer of the Criminal Division, announced that Ray M. White, 51, pleaded guilty before U.S. Magistrate Judge Paul D. Stickney to a criminal information charging one count of commodities fraud. Ray White faces a maximum statutory sentence of 10 years in prison, a $1 million fine, and restitution, and is scheduled to be sentenced by U.S. District Judge Barbara M.G. Lynn on September 17, 2010.