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Tag: U.S. District Judge Robert J. Jonker

  • UPDATE: Jeffery L. Groendyke, Michigan Man Accused In Forex Ponzi Scheme, Ordered To Pay Nearly $1.4 Million In Restitution And Penalties

    Jeffery L. Groendyke, the Michigan man accused by the CFTC in May of targeting people of faith and others in a Forex Ponzi scheme, has been ordered to pay $963,141 in restitution and a $420,000 civil penalty.

    U.S. District Judge Robert J. Jonker issued the order against Groendyke by consent, finding that he fraudulently solicited $1,009,844 from 42 individuals, lost some of it trading and making Ponzi payments and sent $501,510 to an entity known as Capstone FX.

    The CFTC last month charged Captone and its operator Nicholas Trimble with fraud, amid allegations Trimble spent investors’ money in Las Vegas casinos, fabricated an office in Utah (and a miraculous trading platform) — and told other lies to separate people from their money.

    Groendyke’s scheme caused an apparent Groendyke supporter to visit the PP Blog in the spring and claim “I can’t wait to laugh at the CFTC.”

    The same poster demanded, “Do some homework bitch.”

    For the breakdown on how investor funds were dissipated in the Groendyke scheme and how investors were hoodwinked by false statements, read the judicial order against Groendyke.

     

  • CFTC: Michigan Man Sucked Church Members Into Forex Ponzi Scheme; Jeffery L. Groendyke Sued For Fraud

    A Michigan man has been sued for fraud and misappropriation in yet-another alleged Forex Ponzi scheme, the CFTC said.

    Jeffery L. Groendyke of the Grand Rapids-area community of Middleville, Mich., gathered at least $953,305 since May 2010 and ripped off at least 54 customers through his at-home business known as JG Forex Fund (JGF), the CFTC said.

    The scheme “primarily” was targeted at congregants of a Middleville church, the agency alleged.

    As the scheme progressed, some customers ended up becoming recruiters lured by commissions, the CFTC said.

    But Groendyke never was registered with the CFTC “in any capacity,” and he traded customers’ commodity-pool funds in his own personal accounts, the CFTC said.

    One account in which Groendyke allegedly traded purportedly had a balance of more than $1 million on Dec. 31, but actually had a balance of $14, the CFTC alleged.

    Another account that purportedly contained more than $458,000 had an actual balance of $49, the CFTC charged.

    Investors were given bogus information on the account balances and Groendyke’s trading prowess, the CFTC said. Filings suggest the scheme began to unravel last fall, but Groendyke continued to solicit funds

    Although Groendyke “solicited and accepted at least $953,305,” he used “no more than $366,950 of that amount to trade forex,” the CFTC said.

    “Instead of using participants’ funds to trade forex, as Groendyke represented, he transferred $461,385 of their funds to his personal bank account, used at least $26,966.14 to pay purported forex trading profits to existing participants in the manner of a Ponzi scheme, and used $124,970 to trade commodity futures for his own account,” the CFTC said.