For Release: July 27, 2006
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today that Judge Terry J. Hatter of the U.S. District Court for the Central District of California entered a consent order against trading software vendor Richard Swannell of Australia, ordering, among other things, him to pay a civil monetary penalty of $140,000.
The consent order was issued against Swannell in connection with an enforcement action filed by the CFTC in 2003 (see CFTC News Release 4789-03, May 21, 2003) that charged, among other things, that Swannell violated a prior September 6, 2000, CFTC order against him by using hypothetical trading results to sell his Elliott Wave Analyzer software programs and seminars without disclosing that the trading results were not the result of actual trading.
The recent consent order finds that Swannell's website included statements that the software is "84.9% accurate- Statistically Proven" and that "the Elliott Wave Analyzer 3 can accurately forecast market movement." According to the consent order, these statements were based upon hypothetical trading, a fact that Swannell failed to disclose to prospective customers. Further, the consent order finds that Swannell failed to prominently display warnings regarding the limitations and risks of simulated or hypothetical trading results as required by CFTC regulations, and violated his prior consent order.
In addition to imposing a $140,000 civil monetary penalty, the consent order permanently enjoins Swannell from violating the prior CFTC order, and imposes permanent registration, solicitation and trading bans regarding United States customers, accounts and registered entities.
The CFTC appreciates the assistance of the Australian Securities & Investments Commission.
The following CFTC Division of Enforcement staff members were responsible for this case: Robert J. Hildum, Timothy J. Mulreany, Kyong J. Koh, Jackie Hamra Mesa, Paul G. Hayeck, and Joan Manley.
Last Updated: April 22, 2010