Authorities Charge Miami Man With $768k Ponzi Scheme
A South Florida man and his company have been accused of swindling $768 thousand from investors as part of a Ponzi Scheme. Juvenal Eduardo Machado, along with Invers Forex, was charged by the U.S. Commodities Futures Trading Commission ("CFTC") of defrauding at least 28 investors by operating a Ponzi Scheme under the guise of a foreign currency trading operation.
In return for opening an account with Machado, investors were promised monthly returns exceeding five percent. Instead, Machado used a majority of the funds for personal and business expenses, including the payment of false interest payments to investors. The complaint filed by the CFTC alleges that only $135,000 was invested in currency trading, and nearly all of the $135,000 was lost.
Many of the investors were said to have attended prayer services at Machado's home.