Idaho Pastor Charged in Million Dollar Forex Ponzi Scheme

The U.S. Currency Futures Trading Commission announced it had charged and obtained a consent order against an Idaho Pastor for his operation of a million dollar currency trading Ponzi scheme.  Jeremiah C. Yancy, also known as Jeremiah C. Glaub, of Atoka, Idaho, was charged along with his company, Longbranch Group International LLC, of Houston, Texas.  The CFTC had obtained an emergency court order freezing Yancy's assets in August 2010.

From July 2008 to August 2010, Yancy and Longbranch Group solicited investments from at least 64 victims, including members of Yancy's church in Idaho where he was a Pastor.  Investors would open foreign currency trading accounts with Yancy, who falsely represented that his company managed currency trading for non-profits including orphanages.  Investors were promised monthly returns of twenty to forty percent, and assured that their investment was risk-free.  Fictitious account statements were also generated and sent to investors as proof of the authenticity of the operation. Yet, in reality, Yancy and Longbranch Group never traded forex, and instead used investor funds to pay returns to older investors.  

Investors ultimately placed $630,000 with Yancy, of which $230,000 was ultimately lost.  As part of the terms of the consent order entered, Yancy and Longbranch Group were ordered to pay restitution of $692,000 to defrauded investors, and each ordered to pay a $692,000 civil monetary penalty.  Each are also permanently enjoined from engaging in any commodity-related activity.