For Release: June 5, 2002
COMMODITY FUTURES TRADING COMMISSION FILES FEDERAL ACTION AGAINST FLORIDA MAN FOR PROVIDING FALSE INFORMATION RELATED TO HIS $6.8 MILLION SETTLEMENT WITH THE COMMISSION
Federal Court Freezes Assets, Books and Records of Defendant David Alan Luger
WASHINGTON, D.C.-- The Commodity Futures Trading Commission (CFTC) announced today the filing of a civil injunctive action in federal court in West Palm Beach, Florida, against David Alan Luger of Boca Raton, Florida, on June 3, 2002, charging him with violating a prior CFTC order by providing false information and failing to provide required information to the CFTC.
On June 3, 2002, the Honorable Daniel T. K. Hurley of the United States District Court of the Southern District of Florida issued an order freezing Luger’s assets and prohibiting the destruction of documents.
The prior CFTC order, issued in February 2000, settled a complaint filed by the CFTC, charging Luger and others with fraudulently soliciting customers to open commodity option trading accounts and failing to supervise diligently associated persons at Lexus Financial Group, Inc., in violation of the federal commodities laws and regulations (see CFTC News Release 4365-00, February 17, 2000. The CFTC order required Luger, among other things, to pay restitution of $6.8 million to defrauded customers, plus pre-judgment interest, pursuant to an income-based, five-year payment plan. The order also required Luger to submit financial statements and tax records for the purpose of determining the amount of annual restitution payments to be made by him to victims of his fraudulent activity.
The CFTC complaint filed on June 3, 2002, alleges that, since June 2000, Luger has been violating the order by submitting false financial statements, failing to timely submit financial statements, and failing to submit tax records. The complaint alleges, among other things, that, in financial statements submitted by Luger, he claims to have made between $3,000 and $4,000 a month, when, in fact, Luger received in excess of $150,000 during that same time period.
In its continuing litigation, the CFTC is seeking preliminary and permanent injunctive relief; the filing of accurate financial information and tax records; restitution for customers, as appropriate, pursuant to the order; disgorgement of ill-gotten gains; and, civil monetary penalties of $120,000 or triple the monetary gain, whichever is greater, for each violation of the Commodity Exchange Act.
The court scheduled a hearing on the CFTC’s motion for preliminary injunction for June 25, 2002, at 9:30 a.m.
The CFTC appreciates the assistance of Florida’s Office of Statewide Prosecution in this action.
The following Division of Enforcement staff are responsible for this case: Leanna Saler, John Dunfee, and Joseph Vargyas.
A copy of the CFTC complaint and restraining order may be obtained at www.cftc.gov.
CFTC Division of Enforcement
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