New York (HedgeCo.Net) – Idaho Falls resident Daren L. Palmer has been charged with operating a $40 million Ponzi scheme through his unregistered company, Trigon Group, according to the Commodity Futures Trading Commission.

Palmer is being charged with solicitation fraud and misappropriation of pool funds after it was discovered he used client funds for personal expenses and failed to register with the CFTC as a commodity pool operator.

According to the complaint, Palmer allegedly bilked $40 million from investors since at least September 2000, by promising returns of 7 percent monthly and 20 percent annually.  From that $40 million, he only placed $4.5 million in his trading accounts.  

“This is another unfortunate example of the maxim, ‘If it appears too good to be true, it probably is,’ said Stephen J. Obie, Acting Director of the CFTC.

Palmer fraudulently claimed he was a successful futures trader and that his pool had a successful track record.  Palmer doctored false account statements as a means to keep up the appearance.  He later admitted to using new capital coming in to pay off older investors, in a typical Ponzi scheme fashion.  

Palmer withdrew about $25,000 to $35,000 per month and used the money to pay off credit card debt, build a new home, and purchase snowmobiles.  Palmer’s next hearing is scheduled for April 23rd.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

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Tags: account statements, accredited-investors, cftc, commodity pool operator, commodity-futures-trading-commission, credit card debt, daren, futures-trader, futures-trading-commission, hedgeco, misappropriation, obie, older investors, personal expenses, ponzi scheme, pool funds, sister-sites, unfortunate example

New York (HedgeCo.Net) – The SEC has located and halted a Ponzi scheme targeted primarily at deaf individuals in the United States and Japan.

According to the complaint, Hawaii-based Billion Coupons, Inc. along with its CEO
Marvin R. Cooper was able to raise $4.4 million from 125 investors by holding seminars at Deaf community centers. 

Cooper allegedly promised investors that their cash would be invested in Forex markets and returns would be in the 25 percent range.  In reality, Cooper only invested $800,000 in Forex markets and lost over $750,000 from those trades.  

When they couldn’t make their promised returns, they started the Ponzi scheme, where new money coming in is used to pay off older investors.  The SEC alleges that Cooper misappropriated at least $1.4 million of those funds to purchase a new home and other personal belongings.  The scam has been running since at least September 2007.

"A Ponzi scheme targeting members of the Deaf community is particularly reprehensible," said Rosalind R. Tyson, Regional Director of the SEC’s Los Angeles Regional Office.

The assets of BCI and Cooper have been frozen and a temporary receiver has been appointed.  In addition to the SEC charges, the Commodity Futures Trading Commission filed an emergency action yesterday against the two, for violations of the antifraud provisions of the Commodity Exchange Act.

Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com 

Tags: accredited-investors, angeles regional office, bci, commodity exchange act, commodity futures trading, commodity-futures-trading-commission, deaf community, deaf individuals, emergency-action, forex markets, futures-trading-commission, hedgeco, new-money, older investors, personal belongings, ponzi scheme, r cooper, regional director