SEC v CRE Capital Corporation and James G. Ossie

SEC Complaint Against CRE Capital Corporation and James G. Ossie

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The Complaint alleges that CRE and Ossie have raised at least $25 million from over 120 investors offering "30 Day Currency Trading Contracts," which promise a guaranteed 10% return in thirty days. The Complaint also alleges that CRE and Ossie claim that they generate profits sufficient to pay these guaranteed returns by trading United States and Japanese currency contracts as the exchange rate fluctuates.

The Complaint alleges that CRE and Ossie told investors that the program involves very little risk because CRE has established a large, defensive reserve fund from which to pay back the 10% ROI, plus redeemed principal. As alleged in the Complaint, CRE does not generate sufficient returns from currency trading to pay the promised returns. The Complaint alleges that the defendants claim CRE and its program were audited by an outside accounting firm which concluded that the investment program was not a Ponzi scheme. According to the complaint, CRE operated as a Ponzi scheme by paying all returns to investors from funds contributed by new investors.

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Reference Info:Pleadings | Federal, 11th Circuit, Florida | United States


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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