On Friday, October 13, 2017, it was announced that the founder and CEO of Wright Time Capital Group had pleaded guilty to commodities fraud. Michael S. Wright pled guilty before United States District Judge Paul A. Engelmayer to commodities fraud in relation to the operation of an investment fund. The defendant convinced victims to invest in his fund by lying about the historical trading performance of Wright Time Capital Group.
Wright actually lost most of the money by investing in unsuccessful forex trades. Then, he attempted to conceal those losses by issuing fake account statements. He soon began operating a Ponzi scheme. He obtained funds from new investors and used that money to pay earlier investors, who were requesting the return of their investments.
Wright founded WTCG in January of 2011. He obtained more than $400,000 from victim investors. When pitching his fund to investors, Wright misrepresented the firm’s investment performance by falsely claiming that he was able to achieve double-digit gains through forex trades during the firm’s first six months of existence.
In reality, Wright earned very little through his forex trading activities. After obtaining funds from investors, Wright did use some of the money for forex trades. However, he also stole some of the money and used it for personal expenses, including travel, hotel stays and even tattoos.
30-year-old Michael S. Wright of Rockville Centre, New York is now scheduled to be sentenced on January 25, 2018 at 10 AM. He will face a maximum sentence of 10 years in prison for the commodities fraud charge.