Tuesday, November 25, 2008

Utah-Based 4NExchange: Just Another Ponzi Scheme

In a state more knowned for Latter Day Saints and basements full of canned peaches, Forex futures "trading" company 4NExchange stuck out like the proverbial sore thumb.

Or at least it did to regulators, who arranged for proprietors Paul Grant and Ronald Bassett to pay $720,000 in civil fraud penalties. No word on the poor saps who poured untold amounts of money down the 4NExchange rathole. Some 220 customers lost about $18 million of the $30 million they invested.

Generally guys like this ignore warnings against similar practices in the future, but Grant and Bassett are in a place where fraud may be a little more difficult to commit: federal prison. Both are servering five year sentences for fraud, money laundering, and other do-re-mi related offenses.

They've also been ordered to repay the $18 million swindled out of investors. Note to investors: that's a when-monkeys-fly-out-of-my-ass scenario. The boys may not be in the Caymans, but you can damn straight bet that there money is.