For Release May 14, 2003
CFTC CHARGES REDONDO BEACH, CALIFORNIA COMMODITY TRADING ADVISOR WITH FRAUD
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of an enforcement action in the U.S. District Court for the Central District of California against Oscar Goldman of Redondo Beach, California, for violating the anti-fraud provisions of the Commodity Exchange Act (CEA). (CFTC v. Oscar Goldman, Civil Action No. 03-3265.)
Specifically, the complaint, filed on May 9, 2003, alleges that, since at least November 2002, Goldman offered to train potential investors to trade commodity futures through a series of courses offered by his company, Trader Tech, Inc., doing business as Trader Tech University.
The complaint alleges that after attracting clients, however, Goldman offered to manage their trading for them, and that, among other things, Goldman: 1) misrepresented to potential investors his past trading success and the success of other traders; and 2) made false statements regarding both the likely profit and risk. At least 98 persons opened managed trading accounts and investors generally lost money, the complaint alleges.
In its continuing litigation against the defendant, the CFTC is seeking an injunction, an accounting for losses, repayments to customers, disgorgement of ill-gotten gains, and civil monetary penalties.
California Department of Corporations Shuts Down Trader Tech University
Working in tandem with the CFTC, the California Department of Corporations separately issued a Desist and Refrain Order to Goldman and his companies on the same day the CFTC filed its complaint. The CFTC appreciates the cooperation it received from the Department of Corporations in investigating this matter.
The following CFTC Division of Enforcement staff members are responsible for this case: Mark Bretscher, Merle Hampton, Dorothy Morris, Scott Williamson, and Rosemary Hollinger.
A copy of the CFTC complaint may be obtained at www.cftc.gov.
CFTC Media Enforcement Contact:
Rosemary Hollinger, Associate Director, CFTC Division of Enforcement
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