CFTC News Release 4394-00 (98-Civ-002163)
For Release: April 11, 2000
UTAH FEDERAL COURT ENTERS PERMANENT INJUNCTION AGAINST
BRIAN TOBLER, OF SYRACUSE, UTAH, IN CFTC ENFORCEMENT ACTION CHARGING FRAUDULENT OPERATION OF THREE COMMODITY POOLS
Court Permanently Bars Tobler From Seeking Registration Or Acting In Any Capacity Requiring Registration With The CFTC and Prohibits Him From Trading For Ten Years
WASHINGTON — The Commodity Futures Trading Commission (CFTC) announced today that on April 7, 2000, U.S. District Court Judge Bruce Jenkins of the U.S. District Court for Utah entered a consent order of permanent injunction against Brian Tobler of Syracuse, Utah, in a case involving the fraudulent operation of three commodity pools.
The court’s order stems from a six-count complaint filed by the CFTC on March 27, 1998, against Tobler and seven others (see CFTC News Release 4129-98, April 1, 1998). The CFTC’s complaint charged Tobler and the other defendants with fraudulently operating three commodity pools (Capital Advantage Group II, L.L.C., Brighton Fund, L.L.C., and Augusta Fund, L.L.C.), issuing false statements, and misappropriating customer funds. According to the CFTC’s complaint, 23 pool participants invested approximately $325,000 in these three pools. Tobler was also charged with commingling pool property with his own. The investors in these pools resided in Utah.
Without admitting or denying the allegations in the CFTC’s complaint, Tobler consented to the entry of the order which, among other things:
1) permanently enjoins him from further violations of the Commodity Exchange Act and CFTC regulations, as charged;
2) prohibits him from soliciting or accepting new clients or participants for commodity futures or options trading and seeking registration or exemption from registration in any capacity with the CFTC; and
3) prohibits him from trading any commodity futures contracts or options on commodity futures contracts for his own personal account or having any such contracts traded on his behalf for a period of ten years.
In addition, the court ordered Tobler to disgorge $5,850, representing his profits from the conduct alleged in the CFTC’s complaint.
This case was filed as the result of a joint investigation by the CFTC’s Division of Enforcement and the State of Utah, Division of Securities. As a result of this investigation, over $850,000 was returned to victims of this fraudulent scheme and a related securities scheme.
In August 1999, the Honorable Bruce Jenkins entered consent orders of permanent injunction against two of Tobler’s co-defendants, Douglas Foster and Robert Moncur (see CFTC News Release # 4310-99, August 30, 1999).
CFTC Seeks Disgorgement of All Ill-Gotten Gains in its Continuing Litigation of this Case
In its continuing litigation against the remaining defendants -- John Larry Schenk, Sam Gray, Fidelity Traders Group, Mark Schenk, and John Steven Schenk -- the CFTC is seeking an order of permanent injunction, an accounting, disgorgement of all ill-gotten gains, restitution to the defrauded investors, and civil monetary penalties.
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