In pleading guilty Friday, Mr. Ward admitted that he stole the investors’ funds, using the money for his own
compensation and expenses, and to purchase the Learn: Forex School in Sacramento. He also admitted that in order to
conceal the theft, he made “Ponzi” payments using other investors’ funds and provided his investors with altered
account statements.
The scheme collapsed in November 2006. The investor victims lost over $7 million.
"Ward used his self-proclaimed expertise in foreign currency trading to steal millions of dollars from family,
friends, employees, and other investors. While he claimed to be a highly successful trader, in fact he was merely a
thief,” says U.S. Attorney McGregor Scott.
The guilty pleas were entered to five counts of wire fraud, two counts of mail fraud, and two counts of engaging in
monetary transactions in property derived from specified unlawful activity, a form of money laundering, according to
Assistant U.S. Attorneys Benjamin Wagner and Ellen Endrizzi, who are prosecuting the case.
There was no plea agreement in the case, and Mr. Ward is to be sentenced Nov. 2.
The maximum penalty under federal law for each offense of wire fraud and mail fraud is 20 years’ imprisonment, a
three-year term of supervised release, and a $250,000 fine. The maximum penalty for each offense of money laundering
is ten years’ imprisonment, a three-year term of supervised release, and a $250,000 fine. However, the actual sentence
will be determined at the discretion of the court after consideration of the advisory Federal Sentencing Guidelines,
which take into account a number of variables, and any applicable statutory sentencing factors.
Central Valley Business Times
Commodity Futures Trading Commission warns of a rise in foreign-currency trading scams.
03/06 - They reach people, often retirees, through cold calls and television commercials. And they likely made off
with $1 billion of stolen money in the last five years.
Foreign-currency trading scam artists, thanks to their growing numbers, are the target of increased enforcement and
education efforts by federal regulators. And a disproportionate number of them seem to have set up camp in South
Florida, said Reuben Jeffery, chair of the U.S. Commodity Futures Trading Commission, at the Boca Raton Resort & Club.
Jeffery and other CFTC regulators said the Futures Industry Association has created a task force to attack the fraud
problem that plagues the foreign-currency markets, which trade an average of $1 trillion a day.
"Most forex dealers are legitimate. But there are a growing number of scam artists," CFTC Commissioner Michae Dunn
said. "It's a black mark on the entire industry."
He said scam artists have ripped off tens of thousands of Americans of all ages, though they primarily target
retirees. In the 87 cases the CFTC has filed in federal court in the last five years alleging foreign-currency fraud,
investors have lost a total of $380 million. Dunn estimates that investors lost $1 billion in that time to foreign-
currency fraud.
"We've got stories of people suffering from dementia and get these cold calls," said Dunn said. "There are also some
very, very bright people [who get scammed]."
With foreign-currency trading, investors buy currencies on the open market. They hope the currency they're buying will
rise in value more than the currency they're using to buy it.
The CFTC is working with state and local authorities to step up investigations and prosecutions in fraud cases. It is
also trying to educate the public through an informational brochure, partnerships with consumer groups and town hall-
style meetings hosted with the National Futures Association.
The message, in large part, is that investors should be wary of unlicensed brokers offering deals that sound too good
to be true. Investors should avoid high-pressure sales, confusing investments and brokers who encourage them to
mortgage their home or cash out their retirement savings.
Asset
An asset is anything of value owned by a person or company. Assets can be converted into cash depending on demand
conditions. In accounting, the term “asset” in a balance sheet includes cash, inventories, property rights and
goodwill. Assets can be used to generate cash flows.
Types of Assets: Tangible
The various types of assets are:
Tangible assets: These assets have a physical existence, such as equipment, building and real estate. It has two sub-
classes:
Current assets: These are cash as well as assets that can be converted into cash, or consumed within a year or within
an operating cycle.
Fixed assets: These assets, such as tools, machinery, land, buildings and furniture, are purchased with the sole aim
of generating profits. Fixed assets, also called PPE (property, plant and equipment), are purchased for long term use.
Types of Assets: Intangible
Intangible assets are not present in the physical form, which makes it very difficult to evaluate them. Thus, these
assets cannot be bought and sold at fair value. These assets include:
* Copyrights: Legal rights granted to the owner of an intellectual property, granting him/her exclusive rights. No
one can use that intellectual property without obtaining permission from the copyright owner.
* Goodwill: This is the difference between the current and fair market price of the net asset value (NAV) of a
company.
* Trademark: A distinguishing attribute by which a company is readily identified.
* Trade name: It is a name under which a business trades. This name could be different from the registered or legal
name and can be considered as the company’s brand.file