Two Colorado men are suspected dozens of investors defrauded of nearly $8 million in a currency trading scheme, according to the U.S. Department of Justice.
Heath Posey of Denver and Timothy McPhee of Estes Park have been charged following a Denver grand jury indictment with wire fraud, conspiracy to commit wire fraud and money laundering, federal officials said Wednesday.
Posey, 38, and McPhee, 63, allegedly posed as the ‘ROI Cash Flow Fund’ and convinced more than 50 people to send them money, which they claimed would be used to buy and sell foreign currency , also known as forex trading.
The pair told investors they would see a 3% monthly return, according to the indictment.
Instead, Posey and McPhee transferred the money to their own bank accounts and used the money for personal investments and to pay off other investors, the indictment said.
Posey and McPhee were arrested Wednesday, according to court records.
Their next court appearance was not immediately available and they could not be reached for comment.
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