Trader guilty in $21.8 million Ponzi scheme

A former GFX Capital director in London has pleaded guilty to running a U.S. $21.8 million Ponzi scheme.

Arrested in February 2009, Terry Freeman, 61, admitted to defrauding investors of U.S. $21.8 million and conducting fraudulent trading.

Instead of investing his clients’ money in foreign exchange markets, he bought lavish homes in Cyprus, France and gifts – such as a U.S. $187,000 diamond ring for his wife.

Freeman will be face sentencing next month.