The FBI and The Department of Justice in Los Angeles are investigating an offshore "foreign currency exchange" investment scheme known as Tradex, which took in 10’s of millions of dollars. Tradex was led by a enigmatic religious leader with strong religious "cult" like overtones. Investors from across the U.S. and Canada lost millions of dollars when Tradex went belly up in 2003. Federal authorities call Tradex a massive "scheme" and a "sham".
The key principle behind Tradex, Arthur Ferdig, has avoided any federal charges involving the operation to date, but an official FBI investigation continues sources told ERSNews.
Tradex began operation in 1995, according to Federal authorities. Both state and federal authorities have been investigating the firm since it folded. A slew of federal, state and civil legal problems have followed Tradex and its founder Arthur Ferdig ever since.
Arthur Ferdig is a former member of the religious group, "The Worldwide Church of God," which had its own legal and financial troubles in the early 80’s. The group is based in Southern California.
The current federal investigation of Ferdig and Tradex has already netted one conviction of a key player in the Tradex operation. Susan Lok of Glendora CA, pleaded guilty and was sentenced to over 10 years in Federal prison. Sources familiar with the federal investigation tell ERSNews that Lok is assisting FBI investigators in their investigation, trying to track down where all the money went. Investigators have accounted for little of the millions taken in by Tradex. Sources close to the federal investigation say Lok’s conviction has been keep quiet by the US attorney as the FBI investigation of Tradex and Ferdig continues.
Lok is currently serving her sentence in a Northern California federal prison. She was ordered to pay 27 million dollars in restitution to the victims of the "Tradex" investment scheme.
Although the US Attorney in Los Angeles handling the case has refused to comment on the case, court documents filed in Los Angeles Federal Court and obtained exclusively by ERSNews, show the Justice Department accused Susan Lok "together with others known and unknown to the United States Attorney, knowingly and with intent to defraud, devised, participated in, and executed a scheme to defraud more than five hundred Investors in the United States, Canada, and elsewhere, including the Central District of California, out of more than $33 million through the operation of a fraudulent currency trading operation, and to obtain money and property from such investors by means of material false and fraudulent pretenses, representations, and promises, and the concealment of material facts." You can view the Los Angeles U.S. Attorney claims against Lok and Tradex here.
Arthur Ferdig and his followers have a history of saying nasty things about Jews.
The biggest victim in Ferdig’s scheme is Los Angeles Jewish businessman Joe Fryzer (Public Communications Services). Freyzer lost about $1.5 million.
