Two men were arrested for allegedly defrauding investors of $15m

Two executives of a collapsed foreign currency trading firm have been arrested by US authorities on fraud charges.

The men were principals of One World Capital Group and allegedly operated a ‘Ponzi’ scheme to defraud customers of around US$15m.

Charles Martin and John Walsh allegedly used customer funds to finance extravagant lifestyles. A former One World employee told authorities that Martin ‘spent money like a billionaire’.

The prosecution alleged that the defendants spent millions of dollars at strip clubs, restaurants and on private jets.

One World was shut down in 2007 by the Commodity Futures Trading Commission. The firm could not pay customer returns because the defendants had allegedly spent all their money.

If convicted, wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine.