For Release: September 26, 2006
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today that it filed a Notice of Intent to Revoke Registration (Notice) against United Investors Group, Inc. (UIG) of Boca Raton, Florida.
The Notice, filed on August 21, 2006, alleges that, pursuant to the Commodity Exchange Act (CEA), UIG is subject to statutory disqualification of its registration as an Introducing Broker based on the entry of a consent order of permanent injunction against it in the U.S. District Court for the Southern District of Florida on June 6, 2006 (see CFTC Press Release 5207-06, July 26, 2006). The consent order settled charges against UIG and other defendants arising from the CFTC’s complaint filed in January 2005 in CFTC v. United Investors Group, Inc., et al. (see CFTC Press Release 5037-05, January 11, 2005).
The CFTC’s complaint alleged that UIG and others fraudulently solicited members of the public to open accounts to trade options on commodity futures contracts by misrepresenting and failing to disclose material facts concerning, among other things: (1) the likelihood that a customer would realize large profits from trading options; (2) the risk involved in trading options; and (3) the performance record of UIG customers.
The consent order found, among other things, that UIG violated certain anti-fraud provisions of the CEA and CFTC regulations and required UIG to pay more than $8 million in restitution to defrauded UIG customers and in excess of $16 million in civil monetary penalties.
The following CFTC Division of Enforcement staff members are responsible for this case: Richard Glaser, Charles Marvine and Rachel Hayes.
Last Updated: April 22, 2010