DALLAS (CN) – Ray White of CRW Management bilked more than 250 investors for $10.9 million and used some of the money to fund his son’s car-racing career, the Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission allege in separate lawsuits in Federal Court.
White allegedly told investors that he would pool their investments and trade in foreign currencies. He promised solid returns and assured customers he would be “conservative with their funds,” the lawsuits claim.
Instead, he allegedly misappropriated the money or used it to pay previous investors.
“Defendants simply were operating a Ponzi scheme in which they misappropriated millions of dollars in CRW customer funds,” the Commodity Futures Trade Commission claims.
The SEC’s complaint lists where some of the money purportedly went, including more than $177,000 to White’s accounts; $164,000 to buy a house; about $205,000 for property in Tyler, Texas; and almost $700,000 to White’s son, Christopher, and Hurricane Motorsports for “car-racing activities.”
The plaintiffs want White and CRW to disgorge the profits and pay civil penalties.