The eye-popping figures and speed of the market are attractive to potential scammers, who often promise huge returns on investments with no downside, according to the CFTC. In an online fraud advisory, the CFTC said it “has witnessed a sharp rise in forex trading scams in recent years.”
Perry never generated the historical returns he represented to investors, according to Erskine’s statement. Instead, he was using investor money to enrich himself or to pay off other investors, with the goal of enticing others to invest with him, Erskine said.
After the civil complaint was filed, Perry continued to pitch new customers, including an undercover FBI agent posing as a potential investor. He promised the agent that a $10,000 investment would return a $19,000 to $25,000 profit.
“Perry carelessly continued his fraudulent investments even after a civil complaint was filed against him, thinking he was untouchable,” Chris Hacker, Special Agent in Charge of FBI Atlanta, said.