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Here is another genius who thought it was OK to rip people off by engaging in a Ponzi scheme. This time, it was a foreign exchange Ponzi scheme. Roberts through his companies FOMAC International, Inc., and Consultores Las Tres Americas S.A. defrauded over 400 investors in the United States and Costa Rica. Apparently, everything started out innocently enough with Roberts, being just another Forex (foreign currency exchange) trader trying to make an honest living. However, after experiencing significant losses while trading investor funds in the Forex markets, Roberts misappropriated at least $3 million, and then used new investor money to pay returns and principal to existing investors. Now comes the story on his sentencing on Friday, January 23rd, 2009...

A Heber Springs man is sentenced to 15 years in prison and over $40 million dollars in restitution for wire fraud.

James Blackman Roberts, 71, was sentenced Friday to wire fraud charges. He entered a guilty plea in May 2008 on one count of wire fraud.

During his plea, Roberts acknowledged that when he began obtaining heavy losses in foreign currency exchange trading, he began a Ponzi scheme telling investors that he was getting high returns on investments by paying earlier investors with later investor's money.

Roberts admitted that he posted gains on a website used by investors to see the current status of their investment when in fact there were substantial losses.

There were more than 400 investors throughout the United States and Central America that fell victim to this scheme.

Roberts admitted that the loss attributed to his fraudulent conduct was $43,456,674.

Along with 180 months, or 15 years, in prison, he is sentenced to repay the $43 million plus as well as adding three years probation after he gets out of prison.

Source: U.S. Department of Justice