Marcos Daniel Jiménez, United States Attorney for the Southern District of Florida, and Jonathan I. Solomon, Special Agent in Charge of the Federal Bureau of Investigation, announced today that Donald C. O’Neill, age 31, formerly of Lighthouse Point, Florida, was apprehended in Rome, Italy. O’Neill was charged with ten (10) counts of mail fraud, ten (10) counts of wire fraud, and twenty (20) counts of money laundering in connection with a fraudulent foreign currency investment scheme carried out through several purported hedge funds that raised approximately $13.7 million from over 38 investors throughout the United States.
The 40-count Indictment resulted from an investigation conducted by the FBI concerning the offer and sale to investors of investments in Foreign Currency (“Forex”) by the following entities: Frecom Currency Traders Group (“Frecom”), f/k/a Frecom Technology Corporation, a Delaware corporation registered with the Florida Department of State, located at 500 East Broward Blvd., Suite 1620, Fort Lauderdale, Florida; Momentum Trading Group, Ltd. (“Momentum”), a Nevada corporation conducting business at 500 East Broward Blvd., Suite 1620, Fort Lauderdale, Florida; and Orca Funds, Inc. (“Orca”), a Florida corporation located at 500 East Broward Blvd., Suite 1620. Donald C. O’Neill was the President and owner of Frecom, Momentum and Orca. From at least January 2001 through September 2002, Donald C. O’Neill, through these and other related entities, was purportedly in the hedge fund management business.
As part of the business, Donald C. O’Neill directly and indirectly solicited individuals and various other entities to invest in the various funds he controlled, including those that purportedly invested in Forex transactions. The funds offered by Donald C. O’Neill were NDT Fund, NDT A Fund, Orca Fund A, Orca Mojave Fund, and Orca Hopi Fund (“Orca Fund entities”). These investors were promised a percentage of any realized profits. In addition, Donald C. O’Neill also offered managed Forex accounts to investors.
Mr. Jiménez commended the investigative efforts of the Federal Bureau of Investigation, as well as the cooperative efforts of the U.S. Commodities Futures Trading Commission. The case is being prosecuted by Assistant United States Attorney David M. Buckner.