UNITED STATES DISTRICT COURT

FOR THE MIDDLE DISTRICT OF ALABAMA

________________________________________________________
)
COMMODITY FUTURES TRADING COMMISSION, ) CIVIL ACTION NO: 00-T-547-S
Plaintiff, )
)
v. )
)
MICHAEL JAMES KONKEL )

individually and d/b/a VENTURE FUND,

)
ICE CAPITAL MANAGEMENT, INC., )
AD ASTRA, INC., and THE INSCAPE FUNDS, )

Defendant.

)
________________________________________________________ )

 

COMPLAINT FOR INJUNCTIVE AND OTHER EQUITABLE RELIEF AND

FOR  CIVIL PENALTIES UNDER THE COMMODITY EXCHANGE ACT

I

SUMMARY

1. From 1996 through the present, Defendant Michael James Konkel individually and d/b/a Venture Fund, Ice Capital Management, Inc., Ad Astra, Inc., and The Inscape Funds ("Konkel"), has defrauded at least fifteen (15) individuals who invested at least $640,000 into a pooled investment vehicle (the "Fund" or "Ice Fund"). Konkel induced these investors to invest in the Ice Fund by making misrepresentations and false profit claims in connection with trading in the commodity futures markets. The amount of money each investor invested ranged from $5,000 to $275,000. Konkel accepted the monies of Alabama residents and others to invest in the Ice Fund; however, he has never been registered with the Commodity Futures Trading Commission ("Commission") as a commodity pool operator, as required under the Commodity Exchange Act, as amended ("Act"), 7 U.S.C. §§ 1 et seq. (1994).

2. Konkel created several firms in order to induce investors to invest money in the Ice Fund. Konkel used these names in conducting business and in promotional literature. Among the names Konkel used were as follows: Venture Fund, Ice Capital Management, Inc., Ad Astra, Inc., and The Inscape Funds.

3. Konkel commingled investor funds by depositing investor monies into several personal accounts. Konkel received investor monies and deposited the monies into a personal checking account in the name "Michael Konkel d/b/a/ Venture Fund" ("Venture Fund account"). These monies were then transferred to another personal checking account in Konkel's name ("Konkel bank account"). From both the Venture Fund account and Konkel's bank account, Konkel transferred investor monies to a commodity futures trading account in his name at Iowa Grain Company ("Iowa Grain") or securities accounts in his name at Bear Stearns & Co., Inc. ("Bear Stearns").

4. Since 1996, a total of approximately $1,300,000 has been deposited into the Venture Fund account and approximately $950,000 of the $1,300,000 has been transferred from the Venture Fund account to Konkel's bank account. Since 1996, of the $1,300,000 deposited into Konkel controlled bank accounts, approximately $270,000 has been transferred to an account in Konkel's name at Iowa Grain and approximately $200,000 has been transferred to two securities accounts at Bear Stearns.

5. Konkel represented to investors that the Ice Fund had positive trading results. These claims of profitable trading were false and misleading. Konkel's personal trading account at Iowa Grain sustained over $200,000 in losses. Currently, the Iowa Grain account has no value. Konkel's securities accounts at Bear Stearns are frozen.

6. Konkel intermittently provided false and misleading account statements to investors. Konkel has refused to return funds to at least several investors.

7. Thus, Konkel has engaged, is engaging in, and is about to engage in acts and practices which violate the anti-fraud provisions set forth in Sections 4b(a)(i)-(iii) and 4o(1) of the Act, 7 U.S.C. §§ 6b(a)(i)-(iii) and 6o(1) (1994), and Section 4.41(a) of the Commodity Futures Trading Commission's Regulations, 17 C.F.R. § 4.41(a) (1999) ("Regulations"). Konkel has violated, is violating, and is about to violate the commodity pool registration requirements set forth in Section 4m(1) of the Act, 7 U.S.C. § 6m(1). Konkel has violated, is violating, and is about to violate the commodity pool disclosure and reporting requirements set forth in Section 4n(4) of the Act, 7 U.S.C. § 6n(4), and Sections 4.21 and 4.22 of the Regulations, 17 C.F.R. §§ 4.21 and 4.22. Konkel has violated, is violating, and is about to violate the provision prohibiting property commingling set forth in Section 4.20(c) of the Regulations, 17 C.F.R. § 4.20(c).

8. Pursuant to Section 6c of the Act, 7 U.S.C. § 13a-1, Plaintiff Commission brings this action to enjoin Konkel's unlawful acts and practices by compelling his compliance with the Act, as amended, 7 U.S.C. §§ 1 et seq., and the Commission's Regulations promulgated thereunder, 17 C.F.R. §§ 1.1 et seq., and by further restraining him from participating in any commodity futures-related activity. Pursuant to the injunction, the Commission also seeks ancillary equitable relief, including, but not limited to, an accounting, disgorgement, restitution, pre-judgment and post-judgment interest, and such other relief, as this Court may deem necessary or appropriate. In addition, the Commission seeks civil penalties in an amount not to exceed $110,000 per violation (or $100,000 for violations prior to November 27, 1996) or triple Konkel's monetary gain

9. Unless restrained by this Court, Konkel is likely to continue to engage in the acts and practices described in this complaint or in similar acts and practices.

II

JURISDICTION AND VENUE

10. The Act and the Regulations establish a comprehensive system for regulating the purchase and sale of commodity futures and options contracts. This Court has jurisdiction over this action pursuant to Section 6c(a) of the Act, 7 U.S.C. § 13a-1(a), which authorizes the Commission to seek injunctive relief against any person whenever it shall appear to the Commission that such person has engaged, is engaging, or is about to engage in any act or practice constituting a violation of any provision of the Act or any rule, regulation, or order thereunder.

11. Venue properly lies with this Court pursuant to Section 6c(e) of the Act, 7 U.S.C. § 13a-1(e), in that Konkel is found in, inhabits, or transacts business in this district, and the acts and practices in violation of the Act and the Regulations have occurred, are occurring, or are about to occur within this district.

III

THE PARTIES

12. Plaintiff Commodity Futures Trading Commission is the independent federal regulatory agency responsible for administering and enforcing the Act and the Regulations.

13. Defendant Konkel resides at 3255 County Highway F, Barneveld, WI 53507. From approximately October 1996 to approximately February 1999, Konkel was registered as an associated person ("AP") of Commodity Programs, Inc. ("CPI"), an introducing broker ("IB"). From approximately May 1997 to approximately February 1999, Konkel was a branch manager of CPI. During a portion of the relevant period, CPI was registered with the Commission as an IB. From approximately January 1999 to December 17, 1999, Konkel was an AP and branch manager of World Capital Brokerage Services, Inc. ("WCBS"), a registered IB. During the relevant period, Konkel maintained a trading account with Iowa Grain, a registered futures commission merchant, in his name that was introduced by CPI or WCBS. Konkel has conducted business under the following names: Venture Fund, Ice Capital Management, Inc., Ad Astra, Inc., and The Inscape Funds, among others, none of which has ever been registered with the Commission in any capacity.

IV

STATUTORY DEFINITIONS

14. A "commodity pool" is defined in Commission Regulation 4.10(d)(1), 17 C.F.R. § 4.10(d), as any investment trust, syndicate or similar form of enterprise engaged in the business of investing its pooled funds in trading commodity futures and options.

15. A "commodity pool operator" ("CPO") is defined in Section 1a(4) of the Act, 7 U.S.C. § 1(a)(4), as any person engaged in a business that is of the nature of an investment trust, syndicate, or similar form of enterprise, and who, in connection therewith solicits, accepts or receives from others, funds, securities, or property, either directly or through capital contributions, the sale of stock or other forms of securities or otherwise, for the purpose of trading in any commodity for future delivery on or subject to the rules of any contract market.

16. An "introducing broker" ("IB") is defined at Section 1a(14) of the Act, 7 U.S.C. § 1a(14), as "any person (except an individual who elects to be and is registered as an associated person of a futures commission merchant) engaged in soliciting or in accepting orders for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market who does not accept any money, securities, or property (or extend credit in lieu thereof) to margin, guarantee, or secure any trades or contracts that result or may result therefrom."

V

FACTS

A. BACKGROUND

17. Unless otherwise stated, the relevant time period for the acts described in this Complaint is 1996 through the present.

18. Konkel, while working as an associated person of CPI, decided to form a full service investment firm that would solicit funds from members of the public to invest in commodity futures, securities, mutual funds, and fixed interest-bearing instruments, and to provide loans to other entities.

19. To solicit investors, Konkel created and distributed to the public promotional materials describing the Ice Fund.

20. Ice Fund promotional materials represent that "The Ice\Venture Fund [sic] is intended as a consortium of individuals...who will pool their funds and place these funds in a semi-aggressive format into a select series of trading systems and businesses. This select group of individuals will have a percentage of the consortium based upon the amount that is deposited." Ice Fund promotional materials further represent that "[t]he philosophy of the Ice Fund is to reduce risk as much as possible by incorporating diversified placement of the funds and repayment of the principal in quarterly installments...the whole intent of this situation is to have all original deposits returned in two years and to own a specific percentage of the fund for life."

21. Konkel represented to potential investors and investors that he would trade a portion of the invested funds in commodity futures.

B. SOLICITATION OF THE ICE FUND

22. Konkel solicited and marketed the Ice Fund to members of the public. These solicitation activities have included, but are not limited to, distributing promotional materials and letters, telephoning prospective investors, personally soliciting individuals or groups of individuals, holding one or more seminars, and providing tours of CPI.

23. Konkel, through his association with a resident of Henry County, Alabama, marketed the Ice Fund to other Henry County residents.

24. Approximately forty to fifty people attended a meeting at a resident's Henry County home, where Konkel told the potential investors about the Ice Fund.

25. Ice Fund promotional materials, created and distributed by Konkel, represent that:

The trades [CPI] recommend have a 15 to 20 year history of accuracy of 80% to 100% profitable trades. The recommendations made last year resulted in a annualized gain of %129 [sic]...the Ice Fund trades will take the seasonal recommendations of CPI and correlate them to technical analysis. Using this format my recommendations increased the winning trade percentage consistently above 90%. The profitability increased to an over %200 [sic] annualized gain. The recommendations I have made this year are also in the %90 [sic] accuracy category and with return on margin approaching %100 [sic]. Approximately %35 [sic] of the portfolio will used [sic] in this trading system.

26. Konkel represented to potential investors that he was a commodity trader and had experience in trading commodity futures.

27. Konkel has accepted investor monies for the Ice Fund from residents of Alabama And elsewhere.

28. Konkel did not deliver or cause to be delivered a Disclosure Document to each prospective participant containing the information described in the Regulations.

29. Konkel accepted or received funds, securities or other property from prospective participants without first receiving a signed acknowledgement signed and dated by the prospective participant stating that the prospective participant received a Disclosure Document containing the information described in the Regulations.

C. OPERATION OF THE ICE FUND

30. Konkel informed potential investors that investor funds would be pooled together into the Ice Fund and that the pooled funds would then be invested into different areas, including commodity futures trading.

31. Ice Fund promotional materials, created and distributed by Konkel, represent that

"[t]he funds deposited\loaned [sic] into the Ice Fund will be primarily placed into four areas...[a] trading system and strategy recommended by CPI...a mutual fund timing situation linked to the Standard and Poor's 500...some type of fixed instrument (i.e. T-Bills, money market funds)...[and/or] loaned to CPI if necessary."

32. Ice Fund documentation, created and distributed by Konkel, represents that investor monies will be placed into "the trading system and strategy recommended by CPI." In the summer of 1998, Konkel brought a group of investors to tour CPI's facilities in Tampa, Florida. In June 1999, however, CPI's registration was withdrawn. After June 1999, Ice Fund documentation continued to claim that the fund used the trading recommendations and strategies of CPI for investor monies.

33. Konkel informed investors that they would receive monthly profit checks proportional to their investment. Investors did not, in fact, receive monthly profit checks.

34. Konkel informed investors that they would receive monthly account statements. Konkel did not provide investors with any monthly account statements.

35. Ice Fund documentation dated April 12, 1999, created and distributed by Konkel, indicated that the "commodity pool is about 40% complete and is at the CFTC [Commission] and NFA for regulatory approval." The Commission did not receive commodity pool operator registration materials regarding Konkel. The April 12, 1999 document further states "in the future you will receive monthly reports on our commodity pool." Konkel did not provide investors with monthly reports.

36. Konkel created and distributed reports to investors which represented that the Ice Fund had positive trading performance, including, but not limited to, a memorandum to all investors dated October 9, 1999, which represented that the Ice Fund had a positive trading performance for July 1999 through September 1999. Konkel claimed that these representations were references to and based upon trading in his Iowa Grain account. These claims of profitable and successful futures trading in the Iowa Grain account were false and misleading. In fact, Konkel had lost money in two out of three months of trading that account.

37. Konkel did not provide an Account Statement or Annual Report as required in the Regulations.

D. USE OF INVESTOR MONIES

38. At least fifteen (15) persons invested at least $640,000 with the Ice Fund.

39. At Konkel's directive, individuals who invested monies in the Ice Fund made checks payable to the "Venture Fund." Konkel represented to investors that the Venture Fund was another name for Ice Capital Management, Inc. However, in fact, Konkel deposited these investor funds in his personal checking account at the CUNA Credit Union located in Madison, Wisconsin in the name of "Michael Konkel d/b/a Venture Fund." Konkel is the sole signatory on the Venture Fund account. Konkel also maintained a second personal checking account in his name, the Konkel bank account. Records of bank accounts show that there are no segregated accounts for monies collected from investors.

40. Konkel deposited money from investors into the Venture Fund account, but then typically withdrew the funds and transferred them to Konkel's bank account, usually within the same business day. Since 1996, a total of approximately $1,300,000 has been deposited into the Venture Fund account and approximately $950,000 of the $1,300,000 has been transferred from the Venture Fund account to Konkel's bank account.

41. From Konkel's bank account, Konkel transferred the money again, usually by the next business day. Konkel transferred some of these funds to a commodity futures trading account in his name at Iowa Grain. A total of approximately $270,000 has been transferred to an account in his name at Iowa Grain from Konkel controlled bank accounts since 1996.

42. Konkel transferred other funds into personal securities accounts in his name at Bear Stearns. Konkel maintained two accounts at Bear Stearns, one in the name of "Michael Konkel" and one in the names of "Marlene Cordes and Michael Konkel." Konkel has stated that the funds of Ice Capital Management, Inc. are held in these accounts at Bear Stearns. A total of approximately $200,000 has been transferred to two securities accounts at Bear Stearns from Konkel controlled bank accounts since 1996.

43. Konkel made misrepresentations to investors regarding the use of investor monies. Konkel informed investors that investor monies would be used for the Ice Fund. However, Konkel did not inform investors that investor monies were in fact being used by Konkel for his personal expenses.

44. Konkel commingled the property of the Ice Fund with the property of other persons, including himself, by depositing investor monies into his personal bank and commodity accounts.

VI

VIOLATIONS OF THE COMMODITY EXCHANGE ACT

COUNT I

VIOLATIONS OF SECTION 4b(a)(i)-(iii) OF THE ACT,

7 U.S.C. § 6b(a)(i)-(iii):

FRAUD BY MISREPRESENTATION

45. Paragraphs 1 through 44 are realleged and incorporated herein.

46. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, through use of the mails and other means and instrumentalities of interstate commerce, directly or indirectly, (i) cheated or defrauded or attempted to cheat or defraud other persons; (ii) willfully made or caused to be made to other persons false reports or statements thereof, or willfully entered or caused to be entered for other persons false reports thereof; or (iii) willfully deceived or attempted to deceive other persons, caused investor funds to be used for, among other things, trading commodity futures and options contracts, in violation of Section 4b(a)(i)-(iii) of the Act, 7 U.S.C. § 6b(a)(i)-(iii).

47. Konkel engaged in this conduct in or in connection with orders to make, or the making of, contracts of sale of commodities for future delivery, made, or to be made, for or on behalf of other persons where such contracts for future delivery were or may be used for (a) hedging any transaction in interstate commerce in such commodity, or the products or byproducts thereof, or (b) determining the price basis of any transaction in interstate commerce in such commodity, or (c) delivering any such commodity sold, shipped or received in interstate commerce for the fulfillment thereof.

48. Konkel has made false, deceptive and/or misleading representations of material facts relating to the likelihood of profit, risk, fund performance, and track record from his trading of commodity futures and has issued false and misleading reports in connection with the Ice Fund, including, but not limited to, the following statements and omissions:

a. the Ice Fund would use a trading system and strategy that has a "winning trade percentage consistently above 90%...[and] in the %90 [sic] accuracy category and with return on margin approaching %100 [sic];"

b. "CPI had a good track record for trading commodities for its customers," or words to that effect;

c. he has "made his money trading commodities," or words to that effect;

d. investors would receive a 12.5% return on their investment in the Venture Fund, or words to that effect;

e. the "commodity pool...is at the CFTC and NFA for regulatory approval,"

f. "the commodity pool was doing quite well," or words to that effect;

g. the Ice Fund had positive trading results;

h. investor monies "[were] guaranteed by the Venture fund," or words to that effect; and

i. failing to disclose to investors that he incurred trading losses.

Konkel made these statements with knowledge of their falsity or with reckless disregard for their truth or falsity.

COUNT II

VIOLATIONS OF SECTION 4o(1) OF THE ACT, 7 U.S.C. § 6o(1),

AND SECTION 4.41(a) OF THE REGULATIONS, 17 C.F.R. § 4.41(a):

FRAUD BY COMMODITY POOL OPERATORS and

FRAUDULENT ADVERTISING BY A COMMODITY POOL OPERATOR

49. Paragraphs 1 through 48 are realleged and incorporated herein.

50. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, by acting as a commodity pool operator, and by use of the mails or other instrumentalities of interstate commerce, directly or indirectly, employed devices, schemes or artifices to defraud customers, or engaged in transactions, practices, or a course of business conduct which operated as a fraud or deceit upon customers, in violation of Section 4o(1) of the Act, 7 U.S.C. § 6o(1).

51. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, advertised in a manner which: (1) employed a device, scheme or artifice to defraud participants or clients or prospective participants or clients; or (2) involved any transaction, practice or course of business which operated as a fraud or deceit upon participants or clients or prospective participants or clients in violation of Section 4.41(a) of the Regulations, 17 C.F.R. § 4.41(a).

COUNT III

VIOLATIONS OF SECTIONS 4m(1) OF THE ACT, 7 U.S.C. § 6m(1):

OPERATING A COMMODITY POOL WITHOUT

BEING REGISTERED WITH THE COMMISSION

52. Paragraphs 1 through 51 are realleged and incorporated herein.

53. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, operated a commodity pool without being registered with the Commission in violation of Section 4m(1) of the Act, 7 U.S.C. § 6m(1).

COUNT IV

VIOLATIONS OF SECTION 4n(4) OF THE ACT, 7 U.S.C. § 6n(4), and

SECTIONS 4.20(c), 4.21, and 4.22, OF THE

REGULATIONS, 17 C.F.R. §§ 4.20(c), 4.21, and 4.22:

COMMINGLING POOL PROPERTY WITH ANY OTHER PROPERTY,

FAILURE TO REPORT TO POOL PARTICIPANTS, and

FAILURE TO DELIVER POOL DISCLOSURE DOCUMENT

54. Paragraphs 1 through 53 are realleged and incorporated herein.

55. Section 4n(4) of the Act, 7 U.S.C. § 6n(4), provides that every CPO shall regularly furnish statements of account to each participant in his operations in the form and manner prescribed by the Commission and shall include in such statements complete information as to current status of all trading accounts in which a pool participant has an interest. Section 4.22 of the Regulations, 17 C.F.R. § 4.22, describes the form and manner of such statements.

56. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, failed to distribute to each pool participant an Account Statement and Annual Report setting forth the information contained in § 4.22 of the Regulations, 17 C.F.R. § 4.22, in violation of § 4.22 of the Regulations, 17 C.F.R. § 4.22.

57. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, commingled the property of pool participants with his property in violation of Section 4.20(c) of the Regulations, 17 C.F.R. § 4.20(c).

58. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, failed to deliver or caused to be delivered to the prospective participant a Disclosure Document for the pool setting forth the information contained in § 4.24 of the Regulations, 17 C.F.R. § 4.24, in violation of § 4.21(a) of the Regulations, 17 C.F.R. § 4.21(a), and failed to receive from the prospective participant a signed acknowledgement stating that the prospective participant received a Disclosure Document for the pool, in violation of § 4.21(b) of the Regulations, 17 C.F.R. § 4.21(b).

VI

RELIEF REQUESTED

WHEREFORE, Plaintiff respectfully requests that this Court, as authorized by Section 6c of the Act, 7 U.S.C. § 13a-1, and pursuant to its own equitable powers enter:

A. An order of permanent injunction enjoining Konkel, all persons insofar as they are acting in the capacity of agents, servants, employees, successors, assigns, or attorneys of Konkel, and all persons insofar as they are acting in active concert or participation with Konkel who receive actual notice of the Order by personal service or otherwise, from directly or indirectly:

1. Cheating or defrauding or attempting to cheat or defraud other persons, or willfully making or causing to be made to other persons any false report or statement thereof, or willfully entering or causing to be entered for such persons any false record thereof, in or in connection with any order to make, or the making of, any contract of sale of any commodity for future delivery, made, or to be made, for or on behalf of any other person if such contract for future delivery is or may be used for (a) hedging any transaction in interstate commerce in such commodity or the products or byproducts thereof, or (b) determining the price basis of any transaction in interstate commerce in such commodity, or (c) delivering any such commodity sold, shipped, or received in interstate commerce for the fulfillment thereof, in violation of Section 4b(a)(i)-(iii) of the Act, 7 U.S.C. § 6b(a)(i)-(iii);

2. Employing any device, scheme, or artifice to defraud any client or participant or prospective client or participant, or engaging in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or participant or prospective client or participant, by use of the mails or any means or instrumentality of interstate commerce, in violation of Section 4o(1) of the Act, 7 U.S.C. § 6o(1) and advertising in a manner: (1) employing any device, scheme, or artifice to defraud any participant or client or prospective participant or client; or (2) involving any transaction, practice or course of business which operates as a fraud or deceit upon any participant or client or any prospective participant or client in violation of Section 4.41(a) of the Regulations, 17. C.F.R. § 4.41(a);

3. Operating a commodity pool without being registered with the Commission in violation of Section 4m(1) of the Act, 7. U.S.C. § 6m(1);

4. Failing to provide statements of account to customers in the form and manner as prescribed by the Commission in violation of Section 4n(4) of the Act, 7 U.S.C. § 6n(4) and Section 4.22 of the Regulations, 17 C.F.R. § 4.22;

5. Commingling commodity pool property in violation of Section 4.20(c) of the Regulations, 17 C.F.R. § 4.20(c); and

6. Failing to deliver or caused to be delivered a Disclosure Document to prospective pool participants and failing to receive an acknowledgement from the prospective pool participant in violation of Section 4.21 of the Regulations, 17 C.F.R. § 4.21.

B. An order directing that Konkel is permanently restrained, enjoined, and prohibited permanently restrained, enjoined, and prohibited from:

1. trading on or subject to the rules of any contract market;

2. engaging in, controlling, or directing the trading for any commodity interest account for or on behalf of any other person or entity, whether by power of attorney or otherwise; and

3. applying for registration or seeking exemption from registration with the Commission in any capacity, and engaging in any activity requiring such registration or exemption from registration, or acting as an agent or officer of any person registered, exempted from registration or required to be registered with the Commission. This includes, but is not limited to, soliciting, accepting or receiving any funds, revenue, or other property from any person, giving advice for compensation, or soliciting prospective customers, related to the purchase or sale of any commodity futures or options on commodity futures contracts.

C. An order directing that Konkel make an accounting to this Court of all his assets and liabilities, together with all funds he received from and paid to investors and other persons in connection with commodity futures or option transactions or purported commodity futures or option transactions, and all disbursements for any purpose whatsoever of funds received from commodity futures or option investors, including salaries, commissions, fees, loans and other disbursements of money and property of any kind, from January 1, 1996 to and including the date of such accounting;

D. An order requiring Konkel and any of his successors to disgorge all benefits received from acts or practices which constitute violations of the Act and the Regulations as described herein, including pre-judgment and post-judgment interest;

E. An order requiring Konkel to make restitution to every customer whose funds were received or utilized by him as a result of acts and practices that constituted violations of the Act and the Regulations as described herein, including pre-judgment interest and post-judgment interest;

F. An order requiring Konkel to pay a civil penalty under Section 6c(d) of the Act, 7 U.S.C. § 13a-1(d), in an amount of not more than $110,000 per violation (or $100,000 for violations prior to November 27, 1996) or triple Konkel's monetary gain; and

G. Such other equitable relief as this Court may deem necessary or appropriate under the circumstances.

 

Dated: May 1, 2000 Respectfully submitted,
_________________
Stephen M. Humenik
Peter M. Haas
Attorneys for Plaintiff
Commodity Futures Trading Commission

1155 21st St., NW

Washington, DC 20581
(202) 418-5320