The US Commodity Futures Trading Commission (CFTC) has obtained $25.7m in civil monetary penalties and restitution in a federal court consent order against CRE Capital Corporation (CRE) and its president and owner, James Ossie of Dawsonville, Georgia.
The order resolves a CFTC enforcement action brought on 15 January 2009 that charged the defendants with operating a $25m foreign currency Ponzi scheme involving more than 100 customers.
On the same day the CFTC filed its action, the Securities and Exchange Commission (SEC) filed a parallel action against CRE and Ossie.
The order entered by US District Court Judge Richard Story of the Northern District of Georgia requires CRE to pay $5.7m in restitution to defrauded customers and a $15.2m civil monetary penalty.
The order also requires Ossie to pay a $4.8m civil penalty. The order imposes permanent trading and registration bans on CRE and Ossie.
Last year, Ossie pled guilty to criminal charges based on the same conduct alleged in the CFTC’s complaint.
On 30 July 2009, Ossie was sentenced to 82 months in prison and ordered to pay more than $18.7m in criminal restitution to the victims of his scheme.