Three Charged in $3,000,000.00 Ponzie Scheme

SARNIA, ON, Dec. 17 /CNW/ - Three persons have been charged with thirty one counts of Fraud Over $5,000.00 in relation to a 3 million dollar Ponzie Scheme.

The charges stem from a year long criminal investigation conducted by the Royal Canadian Mounted Police Windsor Commercial Crime Section. Twenty four investors were identified as having invested funds ranging from $10,000.00 to $750,000.00 into this scheme.

A Ponzie Scheme is a fraudulent investment operation that pays high returns to investors from money paid by subsequent investors rather than profit. Interest payments are made for a period of time to convince the investors that the investment is legitimate. However the interest payments eventually stop as no new investors are brought into the scheme and investors are given a multitude of excuses as to why the payments have stopped and why their investment funds are not being returned to them.

The RCMP investigators are alleging that clients invested in a foreign exchange trading company by the name of Forex Baron which promised high rates of return on their investments. Investors were paid a portion of the interest owed to them and then the payments stopped. Their initial investment funds have not been returned to them.

"At this time, we have twenty four identified investors, but we believe that others have invested in this scheme. Often, individuals who fall victim to this type of scheme are reluctant to come forward and report their loss," stated Cst. Annette Bernardon of the Windsor RCMP Commercial Crime Section.

Charges with thirty one counts of Fraud Over $5,000.00 are:

1) Terrance McGill, Age 51, of Sombra, Ontario

2) John Paul Baron , Age 49, of Brooklin, Ontario

3) Leeanne Houle , Age 41, of Sombra, Ontario

The accused will appear in court in Sarnia on Monday, January 18th, 2010 .

Anyone who may have invested in this scheme, are asked to contact the Windsor Commercial Crime Section at [phone].

For further information: RCMP Media Contact, Cst. Annette Bernardon, [phone] ext. 255