For Release: July 3, 2003
THE U.S. COMMODITY FUTURES TRADING COMMISSION FILES AND SETTLES ENFORCEMENT ACTION INVOLVING TENNESSEE COMMODITY TRADING ADVISOR TERRY EDWARD JONES
Jones Touted Hypothetical Trading Results as Real
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today the issuance of an order instituting and settling enforcement proceedings against Terry Edward Jones of Bristol, Tennessee.
The order, entered on June 30, 2003, finds that, between November 2000 and August 2001, Jones successfully solicited 16 clients to open commodity futures trading accounts. Jones was to receive compensation for managing the trading in all of these accounts. According to the order, by engaging in these activities, Jones was required to register with the CFTC as a Commodity Trading Advisor (CTA), but failed to do so.
The order further finds that, in June 2001, Jones placed an advertisement in Investors’ Business Daily to solicit clients for his CTA business. According to the order, the advertisement touted Jones as a CTA and included the following trading record: "40K to 400K sinse [sic] January 1st." The order finds that Jones did not disclose in his advertisement, or to his clients, that these results were based on hypothetical trading, and never provided the disclosures required by CFTC regulations concerning the inherent limitations of hypothetical trading results.
Without admitting or denying the findings in the order, Jones consented to its entry. The order finds that he violated the Commodity Exchange Act and the CFTC regulations as charged. The order also directs him to cease and desist from such further violations, bars him from trading on any registered entities for two years, and requires that he comply with specified undertakings, including not to seek registration with the Commission for two years.
The following Division of Enforcement staff were responsible for the case: Gretchen L. Lowe, Richard Glaser, Matthew Elkan, John Wise, James Andreozzi, and Margaret Kanyan.
A copy of the CFTC order can be found at www.cftc.gov.
Media Enforcement Contact:
Deputy Director, CFTC Division of Enforcement
# # #