FBI search of Whatley Drive home related to investigation of foreign currency scheme

An FBI search of a Dothan residence last week yielded multiple paper and electronic documents related to foreign currency exchange, according to federal court documents filed recently.

 
The FBI spent several hours searching a residence on Whatley Drive on July 29. The residence owner, Theodore S. Hudson II, is listed as the president of Monex AL, an Alabama business corporation tied to a Nevada company authorities claim has been operating a fraudulent currency trading scheme involving currencies from Iraq and Vietnam.



The United States Commodity Futures Trading Commission filed a complaint last week against the Nevada company (Dinar Corp), its alleged operator (Husam Tayeh) and associated companies.

According to the complaint, authorities believe Tayeh has been fraudulently attracting customers to invest in foreign currency futures. The complaint states Tayeh and his company are not properly registered and that Tayeh made “material misrepresentations” about the company’s validity to potential customers. The complaint states the company has done about $8 million in foreign exchange transactions, often hitting customers with hidden finance charges of up to 22 percent.

Hudson and his company are listed as “relief defendants”, indicating that the Commodity Futures Trading Commission believes Hudson’s company has funds intended for Tayeh’s company. The complaint alleges Tayeh worked with Hudson to create Monex AL. Tayeh’s foreign exchange customers would then write checks or money orders to “My Monex Inc.” The funds would then be deposited in one of several bank accounts in the Wiregrass, even though none of the funds were meant for the “Monex AL” company.

“As the sole officer of Monex AL, Hudson knew at the time of each such deposit that none of these cashier’s checks and money orders should have been deposited into the bank accounts in the name of Monex AL, and that neither Hudson nor Monex AL had a legitimate claim to the customers’ funds,” the complaint states.

The complaint states “millions of dollars” were deposited in the various accounts.

The associated accounts have been frozen. Commodity Trading Commission investigators have asked a federal judge to delay a hearing scheduled for next week in order to give investigators more time to pore over thousands of documents recovered in the searches in Nevada and Alabama.

“The Commission has obtained a large volume of electronically stored information (“ESI”) and paper records from the Defendants and Relief Defendants, including more than 50 bankers’ boxes of records and multiple computers from the business premises of just the Defendants. Additional paper records and ESI were obtained from the Relief Defendant in Dothan, Alabama. The Commission has been advised by its outside copying vendor that it will take at least 10 to 14 days to scan just the paper records obtained from the Defendants,” court records state.

The complaint alleges a violation of the Commodity Futures Trading Act on the part of Tayeh and seeks return of the funds deposited into the Monex AL accounts.

Court documents indicate Hudson’s representatives are in talks with Commodity Futures Trading Commission officials to reach a possible consent order in the case. According to the complaint, Hudson has not been charged with a violation of the Commodity Futures Trading Act.



http://www.dothaneagle.com/news/crime_court/fbi-search-of-dothan-residence-dealt-with-foreign-currency-exchange/article_2dc8ca30-3a2f-11e5-8f60-f798efce600d.html

When i read and re-read the last paragraph it seems like Hudson is rolling over on Tayeh.

Like everyone thinks Tony did on Sterling?