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Jim Cox wrote:
> NEW YORK COURT FINDS THAT AVCO FINANCIAL CORP. AND ANTHONY VARTULI
> DEFRAUDED OVER 1,000 CUSTOMERS IN CONNECTION WITH THE SALE OF FUTURES
> TRADING COMPUTER SOFTWARE, AND DIRECTS THEM TO DISGORGE $4.1 MILLION
Jim, this is great news. I hope the NFA and the CFTC gets all these non CTA system sellers in court.
I wish though the NFA would re label the non-NFA member CTA's so people wouldn't get confused
between the two. As many people don't know there is a Member CTA and a non-member CTA. The
non-member CTA's can still scam the public (like the one who was on the list mad at andy) and get
away with it. Because they are not under the authoratative arm of the NFA. This is because they are
not members. The NFA is very strict on NFA member CTA's and that's ok. Wish they could force even
companies like Omega to become CTA's, then they would be more cautious about their advertising.
Which depicts how easy it is to buy their software and use a canned trading system (with the
properly set trailing stops of course) and make a bundle. If it were truly known how much money that
Omega has cost the general public, by the misleading get rich quick ads they have run for years.
Then they would be paying claims also!
P.S. Weren't you Jim the same guy who was recently marketing a system called Bulls Eye? Didn't you
have a motto like It moves the market or something like that?
> WASHINGTON - The Commodity Futures Trading Commission (CFTC) announced
> today that the Honorable John F. Keenan of the U.S. District Court for
> the Southern District of New York, after a two-week bench trial earlier
> this year, issued a decision on June 30, 1998, against AVCO Financial
> Corp. (AVCO) and its president Anthony Vartuli, both of Greenwich,
> Connecticut.
>
> In its decision, the court found AVCO and Vartuli liable for
> fraudulently promoting their futures trading software and directed them
> to disgorge $4.1 million in ill-gotten gains. The judge also found that
> AVCO and Vartuli gave commodity trading advice through their software
> and thus were required to be registered with the CFTC as commodity
> trading advisors.
>
> Judge Keenan dismissed the charges brought against a third defendant, J.
> Michael Gent, of Tunnel Hill, Georgia, the developer of the trading
> program, finding insufficient evidence of his control of AVCO and of his
> participation directly in the fraudulent conduct.
>
> The court found that AVCO and Vartuli violated the Commodity Exchange
> Act (CEA) and the CFTC's regulations by fraudulently soliciting
> customers to purchase their software program through false
> representations that the program had generated large profits,
> overwhelmingly picked winning trades, involved little or no risk of
> loss, and had a profitable track record in actual commodity futures
> trading. Judge Keenan found that these false representations were made
> "in connection with" futures trading within the meaning of the CEA and
> that customers relied on these misrepresentations in purchasing the
> defendants' program, resulting in $4.1 million in sales revenue for the
> defendants. The court also found that AVCO met the statutory definition
> of a "commodity trading advisor" and provided personalized trading
> advice.
>
> The court indicated that it would permanently enjoin AVCO and Vartuli
> from future violations of the CEA and Commission regulations, directed
> AVCO and Vartuli to disgorge $4.1 million dollars in ill-gotten customer
> fees, and imposed a civil monetary penalty of $5,000 on both AVCO and
> Vartuli.
>
> CFTC Director of Enforcement Geoffrey Aronow commented:
>
> "This court's carefully-reasoned decision reaffirms the Commission's
> statutory mandate to pursue those who provide fraudulent commodities
> trading advice for profit, whatever the media they choose to use to
> transmit their misinformation. Whether people get their advice
> face-to-face, by telephone, by fax, or by computer, they must always be
> on guard against promises that seem too good to be true."
>
> Hehe.
--
TC
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