A New Jersey man was indicted by a federal grand jury Wednesday for masterminding an investment scheme that bilked investors out of $4 million. George Seporo, 39, was charged with sixteen counts of wire fraud and a single charge of conspiracy to commit wire fraud. The conspiracy charge carries a maximum five-year prison sentence, while each charge of wire fraud carries a maximum twenty-year prison sentence and $250,000 fine.
According to authorities, Seporo operated several companies, including Pelt Capital and Caxton Capital Management ("CCM"). Potential investors were told that Seporo had secret access to a program that allowed him to trade foreign currency. Through this program, Seporo advertised large annual returns and assured investors their principal was safe. However, rather than invest in the "secret program", Seporo instead used investor funds for a variety of other purposes, including sustaining a lavish lifestyle that included high-end vehicles, luxury travel, and "five-figure bar tabs." In addition, Seporo is alleged to have taken advantage of an elderly woman by commandeering her annuity account and directing to write him personal checks that ware used for his expenses.
Investors who are skeptical as to the veracity of a foreign-currency trading operation are encouraged to contact the Commodity Futures Trading Commission, which regulates commodities and futures markets.