Francesc Riverola,
Eldon A. Gresham Targeted Persons of the Christian Faith, Soliciting More Than $15 Million; Court Freezes Assets
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today charged Eldon A. Gresham, d/b/a The Gresham Company, of Peachtree City, Georgia, with operating a multi-million dollar foreign currency (forex) Ponzi scheme, specifically targeting persons of the Christian faith to invest in the scheme.
The CFTC complaint, filed under seal on July 2, 2009, in the U.S. District Court for the Northern District of Georgia, alleges that, from at least January 2004, Gresham solicited more than $15 million from more than 75 customers to trade off-exchange forex contracts. Gresham allegedly claimed to prospective customers that he was successful trading forex because the “Lord had blessed him.” Gresham also told prospective customers that he was offering his program to a limited number of fellow Christians for a limited time, according to the complaint.
Gresham, according to the complaint, solicited some customers to invest supposedly by opening and funding an account for them based on their friendship over the years. After receiving a string of emailed statements showing purported extraordinary monthly returns – of between four and 13 percent – many customers began to contribute their personal funds into accounts with Gresham.
Gresham allegedly persuaded some customers to temporarily withdraw their retirement funds by telling them that he could earn five to 10 percent a month on these funds. He claimed that by doing so, customers could attain profits in less than 60 days. According to Gresham this would enable them to transfer the principal — and expected large profits — back into the retirement accounts before an early withdrawal tax penalty would be assessed. Additionally, Gresham told customers that their risk was limited because he was a conservative trader; he told a least one customer that her investment with Gresham was insured by the federal government and the biggest forex exchange in the United States.
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