For Release: October 22, 2003
COMMODITY FUTURES TRADING COMMISSION FINDS THAT MISSISSIPPI RESIDENT ARTHUR ROWELL FRAUDULENTLY SOLICITED CUSTOMERS TO INVEST IN FOREX CONTRACTS
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today the simultaneous filing and settlement of an action against Arthur Douglas Rowell of Waynesboro, Mississippi, for fraudulently soliciting customers to invest in foreign currency futures contracts.
As a result of the action, the CFTC entered an order on October 15, 2003 finding that, from January 2003 onwards, Rowell used his web site, www.Pro-CurrencyTraders.com (Pro-Currency Traders) and Internet newsgroups and forums to make material misrepresentations and omissions regarding his trading abilities in an attempt to fraudulently solicit customers to trade foreign currency (forex) futures contracts through a registered Futures Commission Merchant (FCM). According to the order, Rowell introduced 10 accounts to the FCM, nine of which granted him power of attorney to trade foreign currency futures contracts. The order finds that the false and misleading statements Rowell posted on the Internet to solicit retail customers to trade foreign currency futures contracts constituted violations of the CFTC’s anti-fraud provisions.
The order also directs Rowell to cease further violations of the Commodity Exchange Act, imposes a civil penalty of $15,000, and requires that he not apply for registration with the CFTC for two years. Rowell consented to the findings in the CFTC order without admitting or denying them.
The following Division of Enforcement staff were responsible for the case: Gretchen L. Lowe, Richard Glaser, Matthew Elkan, and Margaret Kanyan.
A copy of the CFTC order can be found at www.cftc.gov.
Media Enforcement Contact:
CFTC Division of Enforcement
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A CFTC Consumer Advisory Warns the Public of the Risks of
Foreign Currency (FOREX) Trading and Foreign Currency Scams
The CFTC has issued a Consumer Advisory urging the public to scrutinize claims of high-return, low-risk investment opportunities in foreign currency (FOREX) trading. This Consumer Advisory provides "red flags" to look for, and cautionary steps to be taken, before making an investment. See Beware of Foreign Currency Trading Frauds, March 8, 2001 (www.cftc.gov/cftc/cftccustomer.htm).
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