Latest Alleged Ponzi Scheme Unravels In Texas

Mar 5 2009 | 12:12pm ET

Another day, another alleged Ponzi scheme uncovered. This time, it’s from the heart of Texas, with the Commodity Futures Trading Commission accusing Ray White and his hedge fund of stealing $10.8 million from investors.

U.S. District Judge Ed Kinkeade in Dallas has frozen the assets of White’s CRW Management. In its complaint, the CFTC alleges that the Mansfield, Texas-based firm told investors that it used a currency trading strategy that promised returns of as much as 416% per year. In fact, according to the regulator, White was running a Ponzi scheme, and stealing millions for himself and his firm.

Among the big-ticket items White allegedly bought with misappropriated funds were houses, cars, season tickets to the Dallas Stars hockey team and the sponsorship of a drag-racing team, Hurricane Motorsports.

Of the $10.9 million they received from more than 250 investors, CRW invested just $94,000 in forex trades, according to the CFTC. The complaint also lists Christopher White and Hurricane Motorsports as relief defendants that allegedly received money they were not entitled to.

A preliminary injunction hearing has been set for March 11.


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note