For Release: October 7, 2003 (To view order, click here.)
U.S. COMMODITY FUTURES TRADING COMMISSION FINDS LAS VEGAS MAN USED WEBSITE TO MISLEAD PUBLIC ABOUT PROFITABILITY OF HIS COMMODITY TRADING SYSTEM
Steven Matrix Settles Charges He Made False Claims About His CounterPoint Method Trading System
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing and simultaneous settlement of an administrative enforcement action against Internet commodity trading system seller Steven Matrix (Matrix) of Las Vegas, Nevada. The CFTC order finds that Matrix fraudulently solicited clients to purchase a commodity futures trading system called the CounterPoint Method.
Specifically, the order finds that, between June 2002 and July 2003, Matrix fraudulently solicited clients through his website to purchase the CounterPoint Method, a trading system manual with chart updates and e-mail support. According to the order, Matrix -- in marketing the CounterPoint Method trading system -- made false claims to clients and prospective clients that he had actually earned profits while trading commodity futures according to that system when, in fact, he had only performed hypothetical back-testing of the trading system and had no documentary proof of his trading results.
The order also finds that Matrix listed specific trading profits on his website, thereby creating the impression that each trade represented an actual, profitable trade made using the CounterPoint Method. In fact, the order finds that all of the listed trades were hypothetical and that Matrix failed to disclose that fact as required by the CFTC's regulations.
The order further finds that Matrix failed to provide disclosures concerning the inherent limitations of hypothetical results and the risks involved in trading futures, as also required by CFTC regulations.
The Order Requires Matrix to Pay a $15,000 Monetary Penalty
The order requires Matrix to pay a $15,000 civil penalty; cease and desist from further violations of the Commodity Exchange Act and CFTC regulations; and not to make unsubstantiated claims of profits or risk in connection with the use of commodity trading systems or methods. In consenting to the entry of the CFTC’s order, Matrix neither admitted nor denied the findings made in the order.
A copy of the CFTC order may be found at http://www.cftc.gov/.
The following Division of Enforcement staff were responsible for this enforcement action: Karin Roth, Angela Bella, Philip Rix, Beth Morgenstern, Lenel Hickson, Jr., Stephen Obie, and Vincent McGonagle.
Media Enforcement Contact:
Stephen J. Obie, Associate Director and Regional Counsel
CFTC Division of Enforcement
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