For Release: November 20, 2001
Commodity Trading Advisor Settles Government Fraud Charges
CFTC Orders Nicholas J. Nickolaou to Pay Restitution
and Penalties For Fraudulently Soliciting the Public to Buy His
“Wisdom of the Ages” Trading System
Washington D.C. – The Commodity Futures Trading Commission (CFTC) announced today the settlement of an action filed on September 30, 1999, against Nicholas J. Nickolaou and Ca-Ni Industries, Ltd. (Ca-Ni). The CFTC complaint, filed in federal district court for the Northern District of Illinois, alleged that Nickolaou, formerly of Lemont, Illinois, and currently residing in Deltona, Florida, engaged in fraud by soliciting the public to buy his computer-aided trading system “Wisdom of the Ages” (WOTA) (see CFTC News Release 4320-99, October 1, 1999).
The consent order, entered by the court on November 20, 2001, finds that from at least 1995 to the present, Nickolaou acted as a commodity trading advisor and solicited the public to purchase or lease his WOTA trading system. According to the order, his solicitations included advertisements in various futures industry publications including Futures Magazine and Technical Analysis of Stocks and Commodities Magazine. The consent order further finds that, in conversations with existing and potential customers, and in his promotional materials and advertisements, Nickolaou misrepresented: (a) WOTA’s track record and the nature of its trading performance; (b) his use of WOTA in active trading; (c) the number and satisfaction of WOTA users; and (d) his trading experience.
Among other sanctions, the consent order:
● directs Nickolaou to pay restitution totaling $265,105.15 to customers, pursuant to a payment plan, with an initial cash payment of $15,445, and a contingent civil monetary penalty in the amount of $110,000;
● permanently prohibits Nickolaou and Ca-Ni from committing further violations of the Commodity Exchange Act and CFTC regulations; and
● requires Nickolaou and Ca-Ni to comply with certain undertakings, including (1) to not trade on or subject to the rules of any registered futures exchange; (2) to not control or direct any commodity trading account for or on behalf of any person or entity; and (3) to not apply for registration with the CFTC or act as a principal, agent or employee of a CFTC registrant.
In consenting to the entry of the consent order, Nickolaou neither admitted nor denied the allegations in the complaint or findings in the order.
To see a copy of the settlement order, go to the following Internet web address: http://www.cftc.gov/
Media Case Contact:
CFTC Central Regional Office
Division of Enforcement
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