For Release: January 21, 2003
CHICAGO MAN CHARGED WITH FRAUDULENTLY PROMOTING HIS
COMMODITY TRADING SYSTEM
CFTC Alleges Gregory Elliott (d/b/a Softrade, Inc.) Made False Claims Concerning Profits Generated by His Commodity Trading System
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a two-count administrative complaint against Gregory W. Elliott, alleging that Elliott fraudulently advertised a commodity futures trading system on the Internet. Elliott, who is not registered with the CFTC as a commodity trading advisor, resides in Chicago, Illinois, and does business as SofTrade, Inc., and through an Internet website, which he allegedly created and maintains.
The CFTC complaint, filed on January 21, 2003, alleges that, between approximately March 2001 and September 2002, Elliott, using advertisements on his website promoted and marketed to the public a commodity futures trading system called QuantumLevel S&P E-mini S&P Day Trading System. According to the complaint, Elliott included statements on that website that fraudulently misrepresented the performance results of the commodity futures trading system as being based on actual trades, when in fact, they were based on simulated or hypothetical trades.
The complaint also charges that Elliott made false and misleading statements on the website and in e-mail messages he sent to financial chat rooms and Internet newsgroups that overstated the profit potential of the commodity futures trading system he was selling. The complaint also alleges that Elliott presented a performance record without an appropriate statement of disclaimer, warning of the limitations of hypothetical or simulated performance results.
A public hearing has been ordered to determine whether the allegations in the administrative complaint against Elliott are true and, if so, what sanctions are appropriate. Possible sanctions include a cease and desist order, trading prohibitions, suspension or revocation of registration, restitution to customers, and civil monetary penalties of up to $120,000 for each violation of the Commodity Exchange Act and CFTC regulations, or triple the monetary gain to Elliott, whichever is greater.
The following Division of Enforcement staff are responsible for the case: Paul Hayeck, Lisa Rosenthal, and Grant Collins.
A copy of the CFTC complaint and restraining order may be obtained at
Media Enforcement Contact:
CFTC Division of Enforcement
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