CFTC News Release 4474-00 (CFTC Docket No. 01-03)
For Release November 16, 2000
CFTC FILES ADMINISTRATIVE COMPLAINT AGAINST DONALD M. FISHBACK, JR. AND THE DONALD M. FISHBACK COMPANY ALLEGING FRAUDULENT SOLICITATION OF MEMBERS OF THE PUBLIC TO PURCHASE COMMODITY OPTIONS TRADING PRODUCTS AND SERVICES
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today the filing of a four-count administrative complaint against The Donald M. Fishback Company, Inc. (The Fishback Company), a registered commodity trading advisor, and Donald M. Fishback Jr., president of The Fishback Company, both of Lexington, Kentucky.
The complaint alleges that from February 1996 through July 1999, Fishback, through The Fishback Company, fraudulently solicited members of the public to purchase trading products and services for trading commodity options on futures which were based on a system called Options and Derivatives Decision Support (ODDS), in violation of sections 4c(b) and 4o(1) of the Commodity Exchange Act (CEA) and CFTC regulations 4.41 and 33.10. As alleged, these products and services included: The ODDS Fax Hotline and The ODDS Bond Fax Hotline, both of which provided weekly options trading recommendations to subscribers; the Super Traders Journal, which provided monthly options trading recommendations to subscribers; and Trade Master, a computer trading software program.
Specifically, the CFTC’s complaint alleges that, in solicitation materials for the ODDS products and services, Fishback falsely suggested that ODDS' purported hypothetical trading profits were profits made from actual trading, failed to provide a hypothetical disclaimer that conformed to CFTC regulation 4.41(b), and falsely represented his trading experience.
A public hearing has been ordered to determine whether the allegations in the complaint are true, and, if so, what sanctions are appropriate and in the public interest. Possible sanctions include an order directing them to cease and desist from violating the CEA and CFTC regulations, requiring payment of restitution to defrauded customers, imposing a registration revocation and a trading prohibition, and imposing civil monetary penalties of not more than $100,000 or triple the monetary gain, whichever is greater, for each violation committed on or prior to November 27, 1996 (or $110,000 or triple the monetary gain for violations committed after November 27, 1996).
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