For Release: October 10, 2006
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a Notice of Intent to Revoke Registration (Notice) against Wilshire Investment Management Corp. (Wilshire) of Jupiter, Florida.
The Notice, filed on September 28, 2006, alleges that, under the Commodity Exchange Act (CEA), Wilshire is subject to statutory disqualification of its registration as an Introducing Broker based on the entry of a trial order and final judgment against it in the U.S. District Court for the Southern District of Florida on December 5, 2005 (see CFTC Press Release 5200-06, July 19, 2006). The court’s order found that Wilshire, through its employees, engaged in the fraudulent solicitation of retail customers to invest in options on commodity futures contracts, as charged by the CFTC in its complaint filed in September 2004 in CFTC v. Wilshire Investment Management Corp., et al. (see CFTC Press Release 4997-04, September 28, 2004).
The court’s order found that Wilshire 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 Wilshire customers. Furthermore, the court’s order found that, among other things, Wilshire violated certain anti-fraud provisions of the CEA and CFTC regulations, required Wilshire to pay restitution and a civil monetary penalty, and barred Wilshire from engaging in any commodity related activity.
The following CFTC Division of Enforcement staff members are responsible for this case: Gretchen L. Lowe, Allison Lurton, and Rachel Entman.
Last Updated: April 24, 2007