CFTC News Release 4428-00
For Release July 31, 2000
TEXAS FEDERAL COURT ENTERS CONSENT ORDER OF PERMANENT INJUNCTION AGAINST KENT C. CALHOUN, INDIVIDUALLY, AND AS AN AGENT OF OR DOING BUSINESS AS KCI SEMINARS, IN CFTC ENFORCEMENT ACTION CHARGING FRAUDULENT ADVERTISING AND PROHIBITED REFERENCES TO CFTC IN ADVERTISEMENTS
Calhoun Is Barred From Referencing the CFTC or Otherwise Using the CFTC’s Name in Soliciting Customers And Is Ordered to Publish Retractions of Fraudulent Advertisements
Washington – The Commodity Futures Trading Commission (CFTC) announced today that on July 27, 2000, U.S. District Court Judge H. F. Garcia of the U.S. District Court for the Western District of Texas, San Antonio Division, entered a consent order of permanent injunction against Kent C. Calhoun (Calhoun), individually, and as an agent of or doing business as KCI Seminars, of Hunt, Texas, in a case involving deceptive and misleading use of the CFTC’s name in KCI’s advertising of commodity trading advice services and products. In consenting to the entry of the order, Calhoun neither admitted or denied the findings in the order.
The court’s order resolves a four-count complaint filed by the CFTC on June 29, 1999 against Calhoun (see CFTC News Release 4283-99, June 29, 1999). The CFTC’s complaint charged Calhoun with violations of the anti-fraud provisions of the Commodity Exchange Act (CEA) and the CFTC’s regulations through the use of deceptive and misleading advertisements, fraudulent advertising and prohibited references to the CFTC in advertisements that Calhoun caused to be published at various times between June 1995 and June 1999.
As alleged in the CFTC’s complaint and found in the order, Calhoun used the CFTC’s name in advertisements for various commodity trading advice services and products, such as commodity trading systems, seminars, videotapes, and trading manuals that Calhoun produces or causes to be produced under the name of KCI. The CFTC alleged that in advertisements in Futures magazine, Technical Analysis of Stocks and Commodities, and letters Calhoun used to solicit customers, Calhoun represented or implied that the CFTC had documented, verified or otherwise passed on the success of KCI trading systems and the accuracy of KCI advertisements, and suggested that the CFTC in some manner recommended Calhoun as a commodity trading advisor or otherwise passed upon Calhoun’s abilities or qualifications as a commodity trading advisor.
The consent order entered by Judge Garcia: (1) permanently enjoins Calhoun from further violations of the CEA and the CFTC regulations thereunder, as charged; (2) orders Calhoun to publish retractions in Futures magazine and Technical Analysis of Stocks and Commodities; and (3) orders Calhoun to pay a $25,000 civil monetary penalty.
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