Two Colorado males are suspected of defrauding dozens of buyers of practically $8 million in a overseas change buying and selling scheme, in accordance with the U.S. Division of Justice.
Heath Posey, of Denver, and Timothy McPhee, of Estes Park, have been charged with wire fraud, conspiracy to commit wire fraud and cash laundering following a Denver grand jury indictment, federal officers mentioned Wednesday.
Posey, 38, and McPhee, 63, allegedly posed because the “ROI Money Circulation Fund” and satisfied greater than 50 individuals to ship them cash, which they claimed could be used for purchasing and promoting overseas foreign money, also called foreign currency trading.
The pair informed buyers they might see a 3% month-to-month return, in accordance with the indictment.
As an alternative, Posey and McPhee transferred the cash to their very own financial institution accounts and used the funds for private investments and to repay different buyers, in accordance with the indictment.
Posey and McPhee have been arrested Wednesday, in accordance with courtroom information.
Their subsequent courtroom look was not instantly out there they usually couldn’t be reached for remark.
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