BOSTON—A California man was arrested this morning on federal charges that he defrauded investors out of more than $5 million. LYNDON LYDELL PARRILLA, 31, of Los Angeles, is charged with wire fraud arising out of the operation of Green Tree Capital. According to the complaint, Parrilla, through Green Tree, solicited more than $5 million from customers, purportedly for the purpose of trading in the foreign currency exchange (FOREX) market. It is alleged that Parrilla traded, at most, a small portion of customer funds in FOREX and instead spent most of it on personal expenses, including more than $950,000 at casinos and approximately $130,000 to purchase a car. Between October 2009 and February 2011, Parrilla also withdrew more than $2.1 million in cash from Green Tree customer accounts. During that same time period, Green Tree continued to e-mail account statements to customers purporting to show trading gains and losses. In many instances, the account statements showed that customers’...