For Release: July 30, 2007
Washington, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a Notice of Intent to permanently revoke the registration of Commodity Investment Group, Inc. (CIG) of Ft. Lauderdale, Florida, as an Introducing Broker.
The Notice alleges that under the Commodity Exchange Act, CIG is subject to disqualification from registration based on the February 27, 2007 entry of a consent order of permanent injunction and other equitable relief against it in the United States District Court for the Southern District of New York. The consent order resulted from a CFTC civil complaint filed on June 21, 2005, CFTC v. Commodity Investment Group., Inc., et al. (05-CV-5741 (HB) (S.D.N.Y.) (See CFTC News Release 5088-05, June 23, 2005).
The consent order finds that CIG, through its Associated Persons, engaged in fraudulent sales solicitations by, among other things: misrepresenting the likelihood of profiting from trading commodity options; minimizing the risk of loss; and (in light of the profit representations made) failing to disclose that more than 90 percent of CIG’s customers lost money trading commodity options.
The consent order prohibits CIG from, among other things, seeking registration with the CFTC in any capacity and imposes $11,819,785 in restitution and $7 million in civil monetary penalties.
The following CFTC Division of Enforcement staff were responsible for this action: W. Derek Shakabpa, Manal Sultan, Lenel Hickson, Stephen J. Obie, and Vincent A. McGonagle.
Last Updated: July 31, 2007