CFTC Busts Forex Ponzi Scheme

Mar 16 2010 | 1:34pm ET

Another day, another ‘alleged’ Ponzi scheme is busted.

The U.S. Commodity Futures Trading Commission today announced that it has charged Patrick Rakotonanahary and Cyber Market Group, both of Punta Gorda, Florida, with operating a multi-million dollar Ponzi scheme.

The U.S. Commodity Futures Trading Commission charges that, since at least June 2008, Rakotonanahary, the president and chief executive officer of Cyber Market, induced customers—most of them from Hawaii—to purportedly loan them money to trade forex on their behalf. The CFTC complaint alleges that the defendants promised customers weekly payments of 4%-10%, knowing that they lacked the funds to make such payments.

In addition to allegedly paying old investors with new investors’ money, the defendants also misappropriated client funds for their own personal use. In addition, Rakotonanahary and Cyber Market allegedly misrepresented that they had not lost funds in seven years of trading forex and provided false statements to investors, showing a balance of more than $8 million in Cyber Market’s forex trading account when, in fact, the account contained less than 1% of that amount.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...