Investment Firm Operated $45M Ponzi Scheme: CFTC

Law360, New York (March 15, 2011, 10:15 PM EDT) -- Michigan-based investment firm Cash Flow Financial LLC and two of its operators are the targets of a U.S. Commodity Futures Trading Commission suit accusing them of operating a $45 million Ponzi scheme under the guise of a commodity pool.

In a complaint filed Thursday under seal in the U.S. District Court for the Eastern District of Michigan but made public on Tuesday, the CFTC said Alan James Watson and Michael Potts lied to more than 600 investors about the profitability of the purported commodity pool and...
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