Rodney Lee Wagner and Roger Harvey Wagner, who promised investors huge profits through foreign currency trading, were indicted Sept. 9 in the U.S. District Court for the Eastern District of Texas on one count each of conspiracy to commit wire fraud and three counts each of wire fraud.
The Wagners controlled GID Group Inc. of Grand Prairie, a purported forex trading company. The indictment alleges that the Wagners lured investors with the promise of a return of 200% on their principal, paid at a fixed rate over a number of weeks. Instead of using investors' money for foreign currency trading, the brothers spent it to repay previous investors.
The indictment contains a notice of intent to seek criminal forfeiture of $2.6 million that was derived from the alleged fraud.
The Dallas Division Office of the FBI and the Texas State Securities Board investigated the case, which is being prosecuted by the U.S. Attorney's Office for the Eastern District of Texas.
In 2013, the U.S. Commodities Futures Trading Commission obtained a permanent injunction against the Wagners in U.S. District Court in Dallas. The order found that the Wagners misappropriated investor funds in the GID trading operation and ordered them to pay a total of $2.4 million in restitution and civil penalties.