WASHINGTON – A Minnesota man was arrested today on charges related to an
alleged Ponzi scheme involving commodity pools, Acting Assistant Attorney
General Rita M. Glavin for the Criminal Division and U.S. Attorney Frank J.
Magill for the District of Minnesota announced.
Charles "Chuck" E. Hays, of Rosemount, Minn., was charged in a criminal
complaint filed in the District of Minnesota with one count of wire fraud and
one count of mail fraud. According to the complaint, Hays allegedly induced
investors to provide funds to Crossfire Trading, LLC (Crossfire), a company for
which the listed operating address was the same as Hays’ residence.
According to the complaint, Hays allegedly told investors their money had
been invested in a "pooled" commodities trading account, using
misrepresentations such as false statements from a commodities brokerage firm,
when in reality no such investments were ever made. The complaint alleges that
Crossfire had no commodities trading account and the documents shown and sent to
victim investors were fabrications. The complaint also alleges that Hays used
the money wired to his bank accounts by investors for his personal expenses,
including the purchase of an approximately $3 million yacht, as well as for
payments to other investors.
Hays is scheduled to appear today before a magistrate judge for the U.S.
District Court for the District of Minnesota.
Additionally, the government has seized the yacht Hays purchased with
investor funds as well as bank accounts, which contain approximately $1 million
in funds allegedly obtained through the fraudulent scheme.
In a related action, the U.S. Commodity Futures Trading Commission today
filed a civil enforcement action against Hays and Crossfire.
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