'Mini-Madoff' held in $300M suspected currency plot

APR 01, 2011
Spanish police arrested a man suspected of running a $300 million Ponzi-type fraud in foreign exchange trading that may have affected at least 100,000 investors in Europe, the U.S. and Latin America. The “mini-Madoff,” dubbed in reference to jailed Ponzi con man Bernard L. Madoff, offered returns of as much as 10% to 20% monthly for investments in currencies and instead used the money to buy real estate for himself and colleagues, according to a National Police statement today. The man, German Cardona Soler, 49, is a Spanish citizen, said a police spokeswoman who declined to be named, following agency policy. He was arrested in the Mediterranean city of Valencia. Two others were apprehended and seven people were accused in relation to the suspected fraud, the statement said. In 2008, Spain's market regulator warned investors against giving money to Panama-based Evolution Market Group Inc., doing business as Finanzasforex and headed by Chairman German Cardona Soler. The company offered investors 10% to 21% returns investing in foreign exchange, according to the investor warning. Spokesmen for the regulator and the police said they couldn't determine whether they were the same man. The Attorneys College in Madrid wasn't able to say what lawyer may be representing Soler. Accounts in 12 banks have been blocked and the titles frozen for more than 20 properties in Spain, police said. --Bloomberg News--

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave