Friday, July 15, 2011

SEC Press Release: Forex Ponzi Scheme

SEC Charges Forex Ponzi Operator Who Fled After Scheme Unraveled

The U.S. Securities and Exchange Commission (SEC) issued a press release today announcing that it had
filed fraud charges Thursday against the CEO of a purported foreign currency trading firm, alleging he scammed hundreds of investors with false promises of high, fixed-rate returns while secretly using their money to fund his start-up alternative newspaper.
Lowrance, Chief Executive of First Capital Savings & Loan Ltd., raised money across 26 states in the U.S. from investors by guaranteeing them huge profits through a foreign currency trading program. The money was then used to fund Lowrance’s newspaper, pay Lowrance and pay off other investors in a Ponzi scheme. Here are the SEC Complaint and the Litigation Release No. 22040.

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