CFTC Orders Jeffery Lowrance To Pay Over $4.5M For Forex Scheme
Jeffery Alan Lowrance, formerly from Houston, Texas and his New Zealand company, First Capital Savings and Loan, have been ordered to pay jointly and severally more than $4.5 million in monetary fines and restitution for a fraudulent forex scheme, according to U.S. Commodity Futures Trading Commission (CFTC) Release# PR6134-11.
The CFTC announced that it had gotten a default judgment and a permanent injunction against Lowrance and his firm, requiring any web-hosting or domain hosting services to remove any investor solicitations for the firm. The order was entered by Judge Elaine Bucklo for the U.S. District Court for the Northern District of Illinois.
According to the CFTC release, Lowrance and his firm solicited over 36 investors, between June 2008 and February 2011, to trade commodities futures or forex. Lowrance touted himself and his firm as being successful forex traders and promised investors a 1.1% to 4.15% return per month and posted fake account statements on the firm's website showing monthly gains.
As in virtually every Ponzi-type scheme, the funds given to Lowrance for investing were used for his personal expenses, to pay family members, to create a religious newspaper and to pay alleged profits or the return of principal to prior investors.
The CFTC coordinated its investigation with the U.S. Attorney's Office for the Northern District of Illinois, which had an ongoing case against Lowrance for operating a $25 million Ponzi scheme in Peru. In that case he was extradited from Peru.