Michael Philip Atkins, a 51-year-old American, has been sentenced to 39 months in prison for his involvement in a fraudulent foreign exchange trading scheme that defrauded more than 1,300 clients out of over $18 million. The sentencing occurred on April 25, 2024, following Atkins’ successful extradition from the United States to Singapore, where he was re-arrested on March 18, 2023.

Atkins served as the director and majority shareholder of Aureus Capital, a Singapore-based firm. The operation was designed as a classic Ponzi scheme, using only a small fraction of clients’ funds for actual forex trading. The company misled clients by paying returns with money from other investors, a model described by Deputy Public Prosecutor Hon Yi as “clearly unsustainable,” leading to the company’s eventual collapse.

Clients were ultimately able to recover only around S$12.7 million, suffering nearly S$6 million in losses. On April 15, 2024, Atkins pleaded guilty in a Singapore district court to conducting business for fraudulent purposes, acknowledging the deceptive practices involved in his operations.

From April 2013 to July 2014, Aureus Capital offered leveraged foreign exchange trading services, signing clients up for agreements that allowed the company to trade on their behalf. These agreements stipulated that while the firm would retain 40% to 50% of profits, all trading losses would be borne entirely by the clients.

Throughout the operation, Aureus Capital maintained trading accounts with Oanda Asia Pacific, a company providing foreign exchange trading. Clients were instructed to transfer more than S$18 million into a designated bank account, yet over S$14.7 million of these funds were diverted for other uses, including payments to Aureus Capital’s directors, rather than for forex trading. Only about S$1.7 million was actually deposited into Oanda.

To further deceive clients, the firm issued weekly statements that misrepresented the actual trading results, showing profits that were not reflective of the company’s performance. In June 2014, clients were informed that trading would cease as Aureus Capital was in the process of acquiring a banking license. When clients attempted to withdraw their investments, they were met with unresponsiveness, prompting them to alert the police.

Atkins’ initial arrest took place in 2014, but he later jumped bail, leading to an Interpol red notice being issued against him. The notice sought to locate and provisionally arrest him pending extradition. After being traced to the United States in 2017, authorities sent an extradition request in 2020. He was finally extradited to Singapore in March 2023, where he faced the legal repercussions of his actions.