For Release June 27, 2001
CFTC PARTICIPATES IN SECOND ANNUAL INTERNATIONAL “INTERNET SURF” DAY TO UNCOVER FRAUDULENT PROMOTION OF COMMODITY SCHEMES
Washington – The Commodity Futures Trading Commission (CFTC) announced today that it participated in an International Internet Surf Day that targeted futures and securities fraud and abuse on the Internet.
The second annual International Surf Day, organized again this year by the International Organization of Securities Commissions (IOSCO), took place on April 23, 2001, and included the participation of approximately 300 individuals from 38 regulators in 35 countries. This year’s participants included a number of regulators from nations with emerging markets. In total, participants identified more than 2,400 Internet websites for follow-up review, including approximately 278 sites that involved cross-border activity.
Again this year CFTC staff were joined in their efforts by staff from the National Futures Association (NFA). Building on the success of last year’s effort, 45 CFTC and NFA participants reviewed over 1300 websites and identified more than 100 sites for further review, a number of which involved cross-border activity.
The sites identified for follow up review by CFTC and NFA staff involved a variety of trading opportunities, including foreign currencies, stock indices, precious metals and other products. Some claimed profits based on the seasonality of commodities, while others advertised computerized trading systems of various kinds.
According to Phyllis Cela, CFTC Acting Director of Enforcement, IOSCO’s second International Internet Surf Day provided an opportunity for IOSCO members to once again coordinate their identification of potentially fraudulent activity on the Internet and send a clear signal to wrongdoers that they cannot escape detection:
“Continuing cooperative efforts like the IOSCO Internet Surf Day are a vital component of effective enforcement in the global marketplace. The CFTC is committed to protecting US customers from bogus claims about commodity investment opportunities, wherever they occur. Joining forces with other IOSCO members around the world enhances our effectiveness in stopping fraud and educating the public.”
Notes To Editors:
On May 1, 2000 the CFTC filed and settled 10 enforcement actions involving fraudulent activity on the Internet by promoters of commodity trading systems. CFTC Release 4397-00 (www.cftc.gov/opa/enf00/opa4397-00.htm). Simultaneous with the filing of those cases, the CFTC issued a Consumer Advisory warning the public about the risks of trading and outlining some steps they can take to educate themselves before trading or purchasing a trading system. CFTC May 1, 2000 Advisory (www.cftc.gov/enf/00orders/enfposting4-tradingsystem.htm).
On September 6, 2000 the Commission filed and simultaneously settled four additional administrative actions in a second sweep against promoters of commodity trading systems using the Internet, and also filed an injunctive action against a fifth. CFTC Release 4442-00 (www.cftc.gov/opa/enf00/opa4442-00.htm).
Other Advisories and Consumer Alerts issued by the CFTC include:
For further information about IOSCO’s International Internet Surf Day, contact Peter Clark, IOSCO Secretary General, in Madrid, at 001-34-91-417-5549.
List of participating members and websites:
|IOSCO Member Organization||Website Address (www…)|
|AUSTRALIA - Australian Securities and Investments Commission||asic.gov.au|
|AUSTRIA - Austrian Securities Authority||bwa.at|
|BELGIUM - Commission Bancaire et Financière||cbf.be|
|BRAZIL - Comissao de Valores Mobiliarios||cvm.gov.br|
|CANADA - Ontario Securities Commission||osc.gov.on.ca|
|CANADA - Commission des Valeurs Mobilières du Québec||cvmq.com|
|CROATIA - Croatian Securities Commission||crosec.hr|
|CZECH REPUBLIC - Czech Securities Commission||sec.cz|
|CYPRUS - Cyprus Securities and Exchange Commission||cysec.gov.cy|
|DENMARK - Finanstilsynet||ftnet.dk|
|FINLAND - Rahoitustarkastus||rata.bof.fi|
|FRANCE - Commission des Opérations de Bourse||cob.fr|
|FRANCE - Conseil des Marchés Financiers||cmf-france.org|
|GERMANY - Bundesaufsichtsamt Für Den Wertpapierhandel||bawe.de|
|GREECE - Capital Market Commission||hcmc.gr|
|GUERNSEY - Guernsey Financial Services Commission||gfsc.guernseyci.com|
|HONG KONG - Securities and Futures Commission||hksfc.org.hk|
|HUNGARY - Hungarian Financial Supervisory Authority||pszaf.hu|
|INDIA - Securities and Exchange Board of India||sebi.com|
|IRELAND - Central Bank of Ireland||centralbank.ie|
|ISLE OF MAN - Isle of Man Financial Supervision Commission||fsc.gov.im|
|ITALY - Commissione Nazionale per le Società e la Borsa||consob.it|
|JAPAN - Securities and Exchange Surveillance Commission||fsa.go.jp/sesc/sesc-e.html|
|JERSEY - Jersey Financial Services Commission||jerseyfsc.org|
|KOREA - Financial Supervisory Commission of Korea||fss.or.kr|
|MALAYSIA - Securities Commission||sc.com.my|
|MEXICO - Comision Nacional Bancaria y de Valores De Mexico||cnbv.gob.mx|
|NEW ZEALAND - New Zealand Sercurities Commission||sec-com.govt.nz|
|NETHERLANDS - Stichting Toezicht Effectenverkeer||ste.nl|
|NORWAY - Kredittilsynet||kredittilsynet.no|
|POLAND - Polish Securities and Exchange Commission||kpwig.gov.pl|
|PORTUGAL - Commissão do Mercado de Valores Mobiliários||cmvm.pt|
|SINGAPORE - Monetary Authority of Singapore||mas.gov.sg|
|SPAIN - Comisión Nacional del Mercado de Valores||cnmv.es|
|SWEDEN - Finansinspektionen||fi.se|
|SWITZERLAND - Swiss Federal Banking Commission||sfbc.admin.ch|
|TRINIDAD & TOBAGO - Securities and Exchange Commissionfirstname.lastname@example.org ( e-mail )|
|UNITED KINGDOM - Financial Services Authority||fsa.gov.uk|
|UNITED STATES - Commodity Futures Trading Commission||cftc.gov|
|UNITED STATES - National Futures Association||nfa.futures.org|
|UNITED STATES - Securities and Exchange Commission||sec.gov|
Many of the above-listed IOSCO members will announce separately the results of their participation in the International Internet Surf Day. You can contact the members directly for further information.
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