There are investors in east Texas undoubtedly very concerned about their future. They are the ones who have invested their money with a man named George D. Hudgins. The Nacogdoches man is charged with defrauding investors through a commodity pool. The estimated suffered loss is more than 25-million dollars since 2005. Regretfully, that total is likely to grow.
The home and place of business of Hudgins at 3737 Skyline in Nacogdoches. It showed no signs of activity after news of his troubles surfaced. It appeared no one was home and no one answered the phone. Hudgins operated 3737 Financial L.P. The U.S. Commodity Futures Trading Commission outlines their allegations against Hudgins. Rick Glaser, associate director in CFTC Division of Enforcement said, " Hudgins misrepresented the gross amount of annual return. He misrepresented total amount investments, misrepresented the length of the time the pool was in existence. Misrepresented the investment portfolio. Those are the types of things that the CFDC has alleged in its complaint."
Hudgins' neighbor, Mike Pickard noticed throughout the day an unusual amount of activity outside the grounds. " A lot of cars come up and sit outside his gate for a while. One, in particular, stayed for a pretty long time. I assumed that those are people who probably had some money invested with him and wanted to find out what's going on, " said Pickard.
CFDC investigators say it's quite normal in cases of this type for investors to lose all their money. Some local accountants acknowledged having clients who invested money with Hudgins, despite their recommendation to avoid the business deals. Unrealistic returns on investments often spell trouble. Glaser said, " For example, in 2005 Mr Hudgins represented to his investors that the commodity pool was making 53% profit, when in fact, in 2005 the pool suffered losses of almost 9-1/2 million dollars. In 2006 Mr Hudgins represented to his investors that the pool was making approximately 22-1/2 % when in fact during that year the pool lost 11-million dollars. "