Currencies trader pleads not guilty to fraud

Currencies trader pleads not guilty to fraud

Posted: Wednesday, August 6, 2008 8:36 am
By: AP

CHATTANOOGA (AP) — A Chattanooga foreign currencies trader accused of bilking investors out of at least $33 million has pleaded not guilty to the charges. Luis H. Rivas entered the plea at his arraignment in federal court in Greenville, S.C., where he faces mail, wire and securities fraud charges stemming from an alleged Ponzi scheme he ran out of Chattanooga and three states within the last year. A judge granted Rivas a $250,000 bond during the Friday hearing and appointed a federal public defender. Rivas — who was captured in Kansas in June — is accused of promising investors returns of as much as 10 percent a month, but stopped paying returns this past spring and in some instances paid no returns. If Rivas makes bail, court documents show he would have to forfeit his passport, submit to house arrest and electronic monitoring and avoid contact with the 500 or so victims of his alleged scam. ——— Information from: Chattanooga Times Free Press, http://www.timesfreepress.com Published in The Messenger 8.6.08

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