Head of CRE Capital Corporation pleaded guilty to running a Ponzi scheme

On Thursday James G. Ossie, 48, of Atlanta, a head of an Alpharetta firm CRE Capital that claimed hefty profits from trading Japanese and American currencies pleaded guilty to his role in defrauding over 100 people out of more than $25 million. Ossie pleaded guilty to one count of wire fraud before U.S. District Judge Bill Duffey in Atlanta. He is to be sentenced July 30.

Earlier January the Securities and Exchange Commission charged Atlanta-area firm CRE Capital Corporation and its president James G. Ossie with operating a Ponzi scheme. The SEC has obtained an emergency court order freezing their assets and appointing a receiver for CRE. 

CRE Capital offered investment contracts of at least $100,000 that guaranteed the investor’s deposit plus 10 percent interest within just 30 days. However, the profits never turned to come to Ossie who instead lost millions of investors’ money. According to the federal prosecutors the company lost more than $12 million in its foreign currency trading accounts between April 2008 and January 2009.

The prosecutors say that Ossie repaid some investors but the scheme was unsustainable and shut down by the Securities and Exchange Commission in January.

“The damage done by this fraudulent investment scheme is extensive, leaving a trail of victims in its wake,” Gregory Jones, FBI special agent in charge, said.