Magazine article Futures (Cedar Falls, IA) , Vol. 33, No. 11
PONZI PUT TO BED
The CFTC has ordered $14 million in restitution and fines to be paid by Ponzi scheme participants, William Rogers and Maria Toczlyowski, putting the finishing touches on a closely followed case that broke in 1999.
Rogers and Toczlyowski, former president and vice president of the commodity futures division of Republic New York Securities Corp., and Harold Ludwig, former co-director with Martin Armstrong of Princeton Global Management, were ordered to pay more than $10 million in restitution and more than $4 million in civil monetary penalties. Ludwig and Toczlyowski's registrations also have been revoked, permanently prohibiting them from trading on any registered entity.
The first of the current CFTC's orders alleges Rogers and Toczlyowski assisted Armstrong in perpetuating the Ponzi scheme, helping deceive investors about the value of their accounts.
The second order alleges Ludwig engaged in fraudulent trade allocation by, with the assistance of Rogers and Toczlyowski, allocating winning trades to his account and losing trades to his customer accounts.
In 1999 federal prosecutors and the Securities Exchange Commission charged Armstrong, known for his research on cycles, with securities fraud. …