Feds allege $5.5 million Ponzi scheme in Rosemount
The federal government is alleging a Rosemount man has been operating a $5.5 million Ponzi scheme through his Crossfire Trading LLC company.
The U.S. Commodity Futures Trading Commission filed a civil complaint against Charles "Chuck" E. Hays on Thursday while prosecutors filed federal charges in Minneapolis.
They allege fraud and misappropriation in connection with a commodity pool Ponzi scheme. Hays was arrested Thursday and was unavailable for comment.
A working telephone number for Crossfire, which was run out of Hays' house, could not be found.
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The commission is also asking the court to freeze the assets of Crossfire and Hays.
The complaint alleges that since January 2006, Crossfire used fraud to solicit more than $5.5 million from at least three people and a charitable foundation.
Further, the complaint alleges Hays used $4 million in investors funds to buy a yacht and for other purposes.
(Copyright 2009 by The Associated Press. All Rights Reserved.)