Florida forex scam nets guilty plea

Malaysia Sun Thursday 11th December, 2008

A Florida man has pleaded guilty after being found to be the head of fraudulent foreign currency exchange companies.

Mitchell Goldberg has pleaded guilty to two counts each of wire fraud and mail fraud, in a scam that prosecutors say netted $11 million.

Five others were charged with participating in the scheme that was based on the buying and selling of foreign currencies.

In the scam, clients were promised rates of return as high as 300 percent, but, even on poor performance trades, were charged unreasonable commissions

Prosecutors sayd about 475 clients lost about $11.5 million from Goldberg’s operation.

Goldberg could be sentenced to 12 years in prison. He is scheduled for sentencing on February 20th.