Fort Worth, TX (PRWEB) March 26, 2014
U.S. precious metals dealer GoldSilver.org has issued a nationwide warning to investors after the U.S. Commodity Futures Trading Commission (CFTC) announced that a North Carolina man had bilked investors out of $3.2 million by way of a commodity pool futures contract Ponzi scheme. GoldSilver.org spokeswoman Maria Martin says the CFTC’s findings are the latest evidence of widespread derivatives fraud.
“When you buy a commodity outright you know what you have, but most commodities are not conducive to being held privately,” said Martin. “Not many people have the ability to store cattle, oil, corn or sugar, so they invest in commodity pools in order to profit from inflation.”
The CFTC will now attempt to collect the $3.2 million the man persuaded friends and family to invest. According to the latest report from Case Number 3:1-cr-00246 RJC filed in the U.S. District Court for the Western District of North Carolina the defendant spent clients’ funds on Land Rovers, classic car upkeep and at least two vacations.
The defendant told his clients they could see up to 150 percent profits annually to attract new clients, but Martin believes the Ponzi scheme became obvious when all clients’ funds had been exhausted. “If you really think commodity pools are a good idea after reading this story then at least make sure you invest with a reputable firm, but my personal advice would be to take delivery of your commodity investments, especially gold and silver,” she added.
GoldSilver.org is a North American market leader for gold and silver investments for home delivery or within retirement accounts. They buy and sell all sorts of investment-grade gold, silver and platinum. For more information or a free gold and silver investment guide, visit http://www.goldsilver.org or call 1-800-394-3337 today.