Wednesday, May 27, 2009

Foreign Exchange fraud scheme investigated

According to the Dow Jones News Wire, Commodity Futures Trading Commission has filed a lawsuit against two individuals who were involved in a foreign-exchange fraud scheme.

Charged was Robert D. Watson, an executive professor in the Finance Department, Houston lawyer and accountant Daniel J. Petroski and two companies, PrivateFX Global One Ltd. and 36 Holdings Ltd. The CFTC accused the two men of urging potential investors to purchase shares in PrivateFX Global One by touting their supposed quarterly trading returns of 6% to 10% from January 2000 through June 30, 2006.

About 60 investors purchased $19.5 million in Global One shares since it began operations in 2006, according to the CFTC. The defendants reported returns of 1.5% to 3% a month and claimed to never have had a losing month, the agency noted.

Read the full story here.

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