4X Solutions' Proprietor Whileon Chay Indicted for Defrauding Investors for $5 Million

Following on from charges by the US regulator in April 2013, a federal jury in the US has indicted Ponzi scheme operator Whileon Chay, the principal behind 4X Solutions. Details reported by Reuters state that a filing was submitted today outlining details of the alleged crime. The filing also states that included in Chay’s expenditure were funds used to have his wife cryogenically frozen after she died.

Whileon Chay duped 19 customers out of a total of five million US dollars, which he claimed was to be invested in global financial instruments, such as currencies and commodities. However, only a portion of the funds were used for trading purposes resulting in losses of $2 million, with the remaining funds being used for Chay’s lavish lifestyle, coupled with the freeing of his partner, further details in the filing case.

Last year’s CFTC complaint states that Chay was offering clients earnings of 24-36% per annum for investments into his managed account. Chay followed the steps of a typical Ponzi scheme operation by concealing trading losses and misappropriation by, among other things, issuing or causing to be issued false monthly account statements and checks that purported to represent trading profits and investment returns.

Chay is believed to have disappeared to Peru when the scheme was unveiled by authorities.

UPDATE:

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