Chattanooga Bankruptcy Judge John Cook on Friday morning approved an interim trustee to try to recover money for a host of creditors who invested with Ooltewah foreign currency trader Luis H. Rivas.

Judge Cook said Rivas has apparently absconded, and those who invested with him on promises of a 60 percent annual return are the victims of a "Ponzi Scheme."

Grey Steed, a Knoxville CPA and former FBI agent, was appointed to handle the case by U.S. Trustee Bill Sonnenberg. He immediately met with a large number of the Rivas creditors who attended an emergency bankruptcy hearing.

Attorney Jim Fields, who on May 15 filed a motion for involuntary bankruptcy against Rivas, said he has been hearing from people owed money by Rivas all over the country. He said the count by Thursday afternoon was 103 and the amount owed was over $10 million. He said, "We heard from three more this morning, and their amounts total $78,000."

Attorney Fields said FBI officials in Chattanooga and Spartanburg, S.C., have told him they are investigating Rivas.

He said an FBI agent in Spartanburg said he had located at least six Rivas bank accounts. The attorney said he learned that Rivas has property in Sevier County, Tn.

He said he wanted to act quickly in behalf of the creditors to try to secure any Rivas assets.

Phil Lutin testified that Rivas leased an office building from him at 6031 Century Oaks Dr. at Bonny Oaks. He said the lease was supposed to run through November 2011, but he said the office has been cleaned out.

He said he found two bags of shredded documents in the office as well as a trash can of shredded material. There were also some First Tennessee Bank blank checks. He said an FBI agent came by on Thursday and retrieved some of the items.

Mr. Lutin said he invested $100,000 with Rivas as well as $34,000 for each of his children and his ex-wife. He said he is still owed the $202,000 principal and is owed $10,000 in interest payments for himself and $15,000 each in interest payments for the children and his ex-wife.

He said the investment was supposed to pay five percent interest per month, then the entire principal was to be returned at the end. He said he received his last interest payment in April and the others in his family got their last payment in March.

Mr. Lutin said at one time the office was packed with equipment and employees for Rivas' The Forex Project operation. He said he would see 40 cars in the parking lot. "There was literally no place to park," he said.

He said he visited the Rivas office weekly, and he was there on Monday, May 12. When he went to feed the birds on Thursday, May 15, he said the place was deserted. He said, "I looked in the window and I couldn't see any furniture."

Mr. Lutin said he checked with John Shelling, who he said was often his Rivas contact. He said Mr. Shelling told him that on Tuesday, May 13, "Lou came in and told everybody to get out."

He said Mr. Shelling told him that at one time the Rivas operation had a payroll of $200,000 a month.

Mr. Lutin said he checked with the FBI and was told that all the Rivas offices have been closed, including ones in Spartanburg, Tulsa and Orlando.

Attorney Fields said he had five Rivas creditors prepared to testify, including a couple who gave him $100,000 last December and have not gotten any return.

He said he has no information on Rivas' current whereabouts.

Judge Cook said appointment of the interim trustee was "certainly justified."