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Banking and Finance

Atlanta Man Indicted for $1 Million Forex Ponzi Scheme

 An Atlanta man faces multiple criminal fraud charges after being accused of raising more than $1 million from investors in a foreign exchange market Ponzi scheme.  Stafford S. Maxwell, 46, was indicted on ten counts of wire fraud stemming from his former ownership of Millennium Capital Exchange, Inc. ("Millennium")  Each count of wire fraud carries a maximum twenty-year prison sentence.  

According to authorities, Maxwell began soliciting potential investors back in 2008 through promises of guaranteed high returns ranging from 48% to 72% generated through Millennium's successful foreign exchange market trading through accounts in Geneva, Switzerland.  Potential investors were told that Maxwell was an experienced forex trader who had a long history of trading success, and that he had previously generated large returns for other investors.  Maxwell assured investors that he kept "reserve" funds in case of any trading losses, and claimed to use "stops" and "floors" on his currency trades to enhance his returns.  In total, Maxwell raised at least $1 million from investors.

However, the indictment alleges that Maxwell was not the savvy forex trader he held himself out to be.  Rather, Maxwell is accused of suffering significant trading losses using investor funds, including nearly all of the funds he invested in forex.  Maxwell also allegedly lacked the reserve fund he claimed to have, and later ran out of money to pay investors their "guaranteed" returns.  According to authorities, Maxwell lost or spent almost every dollar invested with him.

 For more news and analysis of Ponzi schemes, visit Ponzitracker, a blog by Jordan Maglich, an attorney at Wiand Guerra King P.L.

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