PTC man speaks out on federal indictment

Gresham accused of bilking millions in currency trading scheme

Former Peachtree City resident Elton A. (E.A.) Gresham has been indicted by a federal grand jury alleging that he defrauded investors of $15.8 million. The Sept. 21 indictment filed in federal court in Dallas said Gresham’s Ponzi scheme has resulted in 10 counts of aiding and abetting mail fraud relating to a foreign currency exchange trading (ForEx) program. Gresham on Friday told The Citizen that more than $14 million has gone back to investors, adding that he plans to make full restitution to the others.

Pertaining to the grand jury indictment, U.S. attorney James Jacks said the indictment alleges that from January 2004 through June 2009, Gresham recruited at least 90 individuals in Texas, Georgia, Kentucky, Tennessee, Florida and other states to invest in his ForEx trading business, The Gresham Company. Jacks said Gresham falsely represented to potential investors that he generated consistent returns on investments of up to 10 percent per month. In fact, Gresham was actually losing money on his ForEx trading, Jacks said. 

Jacks said Gresham also concealed from investors that he used their investment funds for personal reasons or as payments to earlier investors, a scheme often called a Ponzi Scheme.

“Over the life of the scheme, Gresham obtained nearly $15.8 million from unsuspecting victims and would send monthly emails to investors containing false investment return information,” the indictment said.

In a related matter, a civil action was filed in July 2009 by the U.S. Commodity Futures Trading Commission (CFTC), alleging that Gresham had operated a ForEx Ponzi scheme, having solicited at least $15 million from more than 75 people.

To date there is no outcome relating to those charges. A CFTC spokesperson Thursday said the civil action is still being litigated.

“Of the $14 million (that has been repaid to investors), that’s the other side of the story from what the federal investigators are saying. Eventually, the other side will come out. And with the $14 million, that needs to be balanced because some investors got more than they put in, some got less and some got about what they put in,” Gresham said Friday.

Jacks on Sept. 21 said it was anticipated that Gresham would surrender himself before a federal magistrate in Atlanta. At that time, Gresham will make his initial appearance on the new indictment, Jacks said. Speaking Friday, Gresham said he turned himself in to federal authorities in Atlanta on Sept. 23 and was issued a personal recognizance bond the same day.

If convicted, the maximum statutory sentence for each mail fraud per count is 20 years in prison and a $250,000 fine, Jacks said. Gresham also stands to lose a home in the Fisher’s Bank subdivision in Peachtree City and another in the Cathy Estates subdivision in Tyrone.

A former resident of Olney, Texas, the indictment said Gresham operated his business out of Peachtree City. He utilized contacts from the Texas area and beyond to locate investors, the indictment said, adding that he also targeted members of the Christian faith, who were elderly and particularly vulnerable to Gresham’s inducements. Gresham often told potential investors that he believed his success in ForEx trading was a blessing and gift from God, and Gresham considered his investment business to be “his ministry.”

Gresham also encouraged people to invest by telling them that investors could use their investment gains to “further God’s work.” 

The indictment lists 10 counts representing 10 investors from Texas, Florida, Tennessee and Georgia. Their investments ranged from $10,000 to $100,000. None of those listed were from Fayette or Coweta counties.

Gresham said he will be challenging the evidence in both the criminal and civil cases based on the way the evidence against him was collected. Gresham said that evidence, collected at his home and office, was collected without a search warrant.

“I’m not trying to evade restitution, I’ve told the judge several times about the evidence issue. I want to pay the investors back if it takes the rest of my life,” Gresham said.

Having contacted The Citizen to go on the record, Gresham on Friday noted another facet to the circumstances surrounding the charges against him. Gresham said an examination in fall 2009 by a forensic psychiatrist determined that he had been suffering from a type of mental illness called “Delusional Disorder, Grandiose Type,” adding that it is one of the six types of mental illness accepted in trial law. The psychiatric report noted that Gresham had suffered from the illness since at least 2002. Gresham said the delusion was broken when a family with “a lot invested wanted their money back.”

Gresham said he had been subject to the delusions for several years and had had issues with mental illness since age 10.

In the lengthy report, the psychiatrist said Gresham’s, “... delusion was not a product of a severe mood disorder, despite his mood being ‘upbeat’ and ’positive’ from 2003 to 2009...

This change in his mood, which stood in stark contrast to his prior episodes of severe depression, was simply an understandable and normal mood response to his false, fixed belief that he was special and had found his calling from God.”

“So what was my motive? It obviously wasn’t money since I had (verified) assets (in 2009) of $22,000 at age 64,” Gresham said. “There’s no way I could have done this, with a sound mind, to these people, many of which I’ve known and loved for years.”

The U.S. Commodity Futures Trading Commission (CFTC) in July 2009 charged Gresham, doing business as the Gresham Company, with operating a multi-million dollar foreign currency (ForEx) Ponzi scheme and specifically targeting persons of the Christian faith to invest in the scheme. Federal court documents said Gresham solicited at least $15 million from more than 75 people.

CFTC was seeking a variety of civil penalties and remedies in U.S. District Court for the Northern District of Georgia in Newnan. The CFTC complaint, filed July 2 alleges that Gresham’s “massive Ponzi scheme” began in January 2004, and continued up until 2009.

CFTC investigators said Gresham’s “gimmick” was “trading off-exchange foreign currency contracts (ForEx).” Gresham allegedly claimed to prospective customers that he was successful trading ForEx because the “Lord had blessed him,” investigators said.

Relating to the circumstances of both the indictment and the civil charges, Gresham said there were approximately 90 investors of whom about half approached him.

“I didn’t target Christians or seniors,” Gresham said. “The investments were intended to help Christians grow an income for their personal benefit and to contribute to the ministries of their choice. The people in the program will verify that.”

Gresham said his first year of trading came in 2003, during which he had one client. Another man asked to be included that year but Gresham said he turned the man down.

Countering some of the claims made by federal investigators, Gresham said he did have successful months of trading.

“In the last two months of trading (May and June of 2009) I made 260 trades and 228 of those were successful,” he said. “That’s 88 percent.”

Gresham said he worked under the ForEx Capital Markets (FXCM) firm, adding that the broker had other traders in the program who were making 10 percent or more per month.

fiddle
fiddle's picture
Offline
Joined: 03/04/2009
Delusional Disorder

In other words he is an egomaniac crook.

Gort
Gort's picture
Offline
Joined: 07/28/2009
Maybe Gresham can become a sponsor

Maybe Gresham can become a sponsor for Glen Beck on Faux. Beck needs a sponsor to replace his 'pals' from Goldline.

PTC Observer
PTC Observer's picture
Offline
Joined: 04/23/2007
Gort

too late the game is over, but not for Goldline. Not yet anyway.

Gort
Gort's picture
Offline
Joined: 07/28/2009
PTC Observer, I don't know if

PTC Observer, I don't know if Gresham is going to beat the charges or not. I just couldn't resist the urge to lampoon Glen Beck.

Either way, Gresham sounds like the kind of guy the Republican's will be looking for when they turn over social security to the "free-for-all" markets.

Observerofu
Observerofu's picture
Offline
Joined: 07/14/2010
I'm sure his feelings are hurt

but somehow I doubt it. I suppose if you can't win in the arena of ideas then "lampooning" is the best you got.

Gort
Gort's picture
Offline
Joined: 07/28/2009
OofU, actually I’m not

OofU, actually I’m not concerned with Beck or Gresham’s feelings at all. The only connection I see is they both prey on a similar audience. By the way, are you still buying gold from Goldline? Sucker!

What new ideas are you talking about? The Republican Plague on America? Ha, ha, ha, ha!

Nothing new there. As Joe Kawfi would say, Ba, Ba, Ba, Ba, Ba, Bush!

Observerofu
Observerofu's picture
Offline
Joined: 07/14/2010
Cackling like a madman

still gets you no where.

I know things like principles, honor and integrity means little to Progressives but these things we are going to restore to America and PRAY it is not too late.

btw-Goldline has an A+ BBB rating and no Weiner can change that. The Government can go after a private business but the market decides the value.

Gold sales are up for Goldliine 22% since the Government's attack. So keep it going.

Gort
Gort's picture
Offline
Joined: 07/28/2009
OofU, first you make me

OofU, first you make me laugh, and then you call me a madman because I'm laughing so hard? That’s just not right!

When you say:

Quote:

.. things like principles, honor and integrity means little to Progressive.

I think you swallowed too much Faux News puke if you believe that.

I’ve already witnessed the results of the “conservative” agenda and it’s more like “P-R-E-Y on American,” instead of “P-R-A-Y for America.”

So Goldline has an A+BBB rating? I got a news flash for you. The people that issue the ratings are the same folks that rated Lehman Brothers, and all the other banks that were passing around useless paper. But don’t let that stop you, keep buying that gold!

I would like to mention that gold is at an all time high and nothing goes up forever. Sorry, not even gold. When the price does drop, if it suits them, the Goldline owners will suck all the cash out of the company and then file for bankruptcy. Their customers will have a piece of paper saying they got a useless guarantee and some gold that is worth less than market value. Their employee’s will join the ranks of unemployed. Good luck with that. Have you ever heard the expression, “buy low and sell high?”

Observerofu
Observerofu's picture
Offline
Joined: 07/14/2010
When the Feds Monetize our debt

and the dollar keeps taking it in the shorts then Gold will continue to rise.
But I don't buy Gold, by the way, since the 80's for investments. I have been and still do buy Gold for Insurance. Gold might come back down or it might spike up.

What makes Gold go up?
National Debt and Deficits. Inflation and a lack of Confidence.

Do we see anything positive going on in Government? I rest my case.

btw-The BBB is worthless now? Your example is flawed at best. The BBB rating does not reflect the financial status of a business. It simply reflects the ratings of a business based on certain criteria. Consumer complaints being one. Delivering what is promised and solving issues are what the BBB reflects. Value is determined by the market not Government.

I know that is antithesis to a Progressive but there it is.

Gort
Gort's picture
Offline
Joined: 07/28/2009
OofU, so you think now is a

OofU, so you think now is a good time for America to pay off the debt?

BTW, I got the BBB thing from your earlier post. From now on I'll consider you and unreliable source. 8 - )

Observerofu
Observerofu's picture
Offline
Joined: 07/14/2010
Gort

1. Yes it has got to start sometime.
2. and who cares.

Gort
Gort's picture
Offline
Joined: 07/28/2009
OofU, 1. I agree with

OofU,

1. I agree with that.

2. I think you care. Why else would you participate on the forum?

Courthouserules
Courthouserules's picture
Offline
Joined: 07/02/2010
observer

Gold lost half of its 1980 value up until 2008, when it finally arrived at the 1980 price.

At that time the USA owed 1 trillion dollars.
In 2008 the debt was 11 trillion dollars

The Dow average in 1980 was about a 1000
2008 was about 9000

Inflation between 1980 and 2008 has been about 4-500%

pure gold is 24 carat weight.
18 carat is worth 18/24 of 24 carat, etc.

There is much "plugged" gold bars around (tungsten in the middle), which doesn't show up in assay!

Coins are better but they are strictly valued by demand not market.

Gold investments are a racket for most. Those who are in and out of it can make a few bucks just like day-traders in stock market.

Long-term gold has never been good due to inflation and demand.

Who do you think is going to buy it anyway if your dollars turn to "worthless?"

Loan your money to FDIC guaranteed and buy land for long term gain!

Or think up a good Ponzi scheme like these store fronts buying "gold!"

Observerofu
Observerofu's picture
Offline
Joined: 07/14/2010
Gold hits new record high

Consumer confidence hits yearly low. A correlation?

Courthouserules
Courthouserules's picture
Offline
Joined: 07/02/2010
Observer

Stop telling people to buy over-priced gold.

If you do have any, I suggest that you sell that piece of paper.
If you have the coins----you are out of luck---no public want for them.

Observerofu
Observerofu's picture
Offline
Joined: 07/14/2010
You keep them dollars real close now

they will be real comforting when it get's cold. They burn nicely.

PTC Observer
PTC Observer's picture
Offline
Joined: 04/23/2007
End the Fed

by Ron Paul is a good read. This man should be President.

Observerofu
Observerofu's picture
Offline
Joined: 07/14/2010
Agreed

Auditing the Fed is the first step in retaking fiscal responsibility. Then end it.