BULLETIN: CFTC Busts 2 Alleged Ponzi Schemes; Patrick H. Rakotonanahary Arrested By FBI In Florida After Financial Fraud Enforcement Task Force Probe

A Florida man has been arrested by the FBI on 21 counts of wire fraud amid allegations he operated a forex Ponzi scheme, collecting more than $10.2 million and pocketing $1 million for himself.

The announcement of the arrest of Patrick H. Rakotonanahary, 34, of  Punta Gorda, Fla., was made in Hawaii after a joint probe by the FBI, the Commodity Futures Trading Commission (CFTC), and the State of Hawaii Department of Commerce and Consumer Affairs (DCCA).

His arrest was credited to a joint investigation by the agencies, which operated under the umbrella of the Interagency Financial Fraud Enforcement Task Force, the FBI said.

President Obama formed the task force in November.

“[I]nstead of using investor money to engage in Forex trading, Rakotonanahary primarily paid investment returns to earlier investors with investment funds from later investors as part of a ‘Ponzi scheme,’ using only about $1,864,000 for Forex trading, which generated losses of $814,806,” the FBI said. “Rakotonanahary used approximately $8,375,703 to pay investment returns and another $1 million personally.”

Most of Rakotonanahary’s 100 investors hailed from Hawaii, the FBI said.

Separately, CFTC announced yet another Ponzi case — this one in North Carolina.

The agency charged Dennis Todd Hagemann and Yellowstone Partners Inc., both of Raleigh, with operating a forex Ponzi scheme involving the fraudulent solicitation of at least $700,000 from at least nine individuals.

Hagemann was arrested and jailed by North Carolina state authorities.

In yet another bizarre Ponzi twist, CFTC said Hagemann purported to have a tie to former Russian Federation President Boris Yeltsin.

Hagemann failed to inform a potential investor “that Mr. Yeltsin is deceased, and was deceased at the time he made the representation,” CFTC said.

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4 Responses to “BULLETIN: CFTC Busts 2 Alleged Ponzi Schemes; Patrick H. Rakotonanahary Arrested By FBI In Florida After Financial Fraud Enforcement Task Force Probe”

  1. Grats to the FBI and other agencies. It’s good to see these things go down.

    No Boris Yeltsin medal jokes, too obvious.

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  2. dirty_bird: No Boris Yeltsin medal jokes, too obvious.

    I can’t imagine the allusion you are making here, d_b. :-)

    Patrick

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  3. A lot of these ponzi scammers promote themselves and their scams on facebook and twitter etc. David Courtney once sent me a facebook “invite” – will his next invite be sent to the FBI?

    When tweets can make you a jailbird
    http://finance.yahoo.com/news/When-tweets-can-make-you-a-apf-2661969609.html?x=0

    Law enforcement agents are following the rest of the Internet world into popular social-networking services, even going undercover with false online profiles to communicate with suspects and gather private information, according to an internal Justice Department document that surfaced in a lawsuit.

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