Release 4539-01
For Release July 10, 2001

MINNESOTA AND WISCONSIN DEFENDANTS BARRED FROM U.S. FUTURES MARKETS BY FEDERAL COURT FOR COMMODITY SCAM

Two Individuals and Three Companies Must Pay Up to $561,452 in Restitution and Up to $671,452 in Civil Fines

WASHINGTON---The United States Commodity Futures Trading Commission (CFTC) announced today that the U. S. District Court for the District of Minnesota permanently banned the fraudulent activities of two men who were operating commodity pools. The defendants consented to the prohibition of their activities which stemmed from a complaint that was filed by the CFTC on September 6, 2000, that charged both defendants Edward Stevenson Kirris of Red Wing, Minnesota and the commodity pool he operated, Selective Futures Management, LLC, with fraudulent conduct. In addition, the CFTC similarly charged William Relf of Hudson, Wisconsin, and the commodity pools he operated, Specialized Commodity Timing, LLC and Commodity Timing Specialists, LLC. The consent orders forbid the defendants [Kirris] [Relf] from operating in the commodities industry.

The CFTC action alleged that the defendants fraudulently solicited customers to invest in the commodity pools they operated (see CFTC News Release 4445-00, September 7, 2000). Specifically, the complaint alleged that, from 1997 through 2000, Kirris, Relf and another individual fraudulently solicited customers to invest over $600,000 in four commodity pools. As set forth in the complaint, Kirris and Relf

In consenting to the entry of the orders, Kirris, Relf, Selective Futures Management, Specialized Commodity Timing, and Commodity Timing Specialists, neither admitted nor denied the allegations in the complaint or the orders' findings. The orders find, among other things, that Kirris, Relf, Selective Futures Management, Specialized Commodity Timing, and Commodity Timing Specialists violated the anti-fraud and registration provisions of the federal commodity laws. The court orders prevent them from further violations.

The orders also:

1) require Kirris to pay total restitution of $561,452 and Relf to pay total restitution of $281,652, jointly and severally with Selective Futures Management, Specialized Commodity Timing, and Commodity Timing Specialists, pursuant to ten-year payment plans;

2) require Kirris to pay, upon satisfaction of his restitution obligation, a civil monetary penalty of up to $561,452; and Relf to pay, upon satisfaction of his restitution obligation, a civil monetary penalty of up to $110,000 -- which are also pursuant to ten-year payment plans; and

3) permanently bar Kirris, Relf, Selective Futures Management, Specialized Commodity Timing, and Commodity Timing Specialists from seeking registration with the CFTC or acting in any capacity requiring CFTC registration, from trading on CFTC regulated markets, and from trading commodity interest accounts on behalf of others.

The CFTC's injunctive action will continue against the remaining three defendants.

* * * * * *
Case Contact:
Scott Williamson
Acting Regional Counsel
Central Regional Office
Division of Enforcement
(312) 886-3090

THE CFTC APPRECIATES YOUR COVERAGE. SINCE WE DO NOT ALWAYS HAVE ACCESS TO YOUR FINAL STORY, WE ASK THAT YOU PLEASE SHARE IT WITH US BY ELECTRONICALLY MAILING OR FAXING A COPY TO OUR PUBLIC AFFAIRS OFFICE.
dholden@cftc.gov
Public Affairs Facsimile: 202-418-5525
Attention: Dennis Holden