2 charged in alleged $15M fraud scheme
Two executives with a currency trading firm have been arrested on charges they ran a $15 million Ponzi-like scheme, authorities in Chicago said Wednesday.
John E. Walsh, 60, of Lake Forest, Ill., was being held on federal wire fraud charges in Chicago and Charles G. Martin, 43, of Glencoe and Malibu, Calif., was in custody in Los Angeles on similar counts, the U.S. attorney's office said in a news release.
Walsh and Martin allegedly diverted millions of dollars to pay for their lavish lifestyles. The customers of their failed firm lost about $15 million, authorities said.
Martin and Walsh were principals of One World Capital Group LLC, which was formed in 2005 in Winnetka, Ill., and had an office in New York. The operation was effectively shut down in December 2007 by the Commodity Futures Trading Commission.
A former One World employee allegedly told investigators Martin spent money like a billionaire.
Martin is accused of spending more than $1 million at a strip club and restaurants, nearly $1 million at luxury hotels and another $1 million on private jets. He purchased luxury cars, donated large amounts to celebrity charity events and hired personal security guards to accompany him in public, the charges allege.
Walsh allegedly used his One World credit card to charge personal expenses, including more than $140,000 of jewelry.
UPI
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