Former Bowie Resident Charged in Ponzi Scheme

Former Bowie resident Sidney J. Charles, Jr., and his company, the Borrowing Station, LLC have been charged with fraud, misappropriation, and registration violations in connection with an alleged Ponzi scheme.

The  U.S. Commodity Futures Trading Commission (CFTC) filed charges against Charles and his company on April 23, also formerly located in Bowie, and a restraining order was entered against Charles, freezing his assets and prohibiting the destruction of his company books and records.

Charles and his company are accused by the CFTC of fraudulently soliciting and accepting money from at least 18 individuals to participate in pooled investment vehicle that traded in forex, wherein he promised returns as high as 25 percent per year or 10 percent a month, and falsely claiming that the funds were guaranteed against losses. It is also alleged that the company was unsuccessful in trading forex and that the pooled fund was used to make false profit payments to other participants.

The CFCT alleges the Ponzi scheme took place from at least October 2009 to July 2011.

Charles’s preliminary injunction hearing is set for May 4, 2012.