Release: 4860-03 (CFTC Docket No. 04-03)
For Release: October 29, 2003 (To view order, click here)
U.S. COMMODITY FUTURES TRADING COMMISSION FILES AND SETTLES ENFORCEMENT ACTION AGAINST BOSTON TRADING ADVISORS, LLC, FOR FAILING TO REGISTER AS A COMMODITY POOL OPERATOR
WASHINGTON – The U.S. Commodity Futures Trading Commission (CFTC) announced today the issuance of an order instituting and simultaneously settling an administrative proceeding against Boston Trading Advisors, LLC, (Boston Trading), a Massachusetts company; Thomas E. Brazil of Boxford, Massachusetts; and Andrew W. Preston of Falmouth, Maine.
The CFTC order, entered on October 27, 2003, finds that, beginning in February 2002, Boston Trading violated the Commodity Exchange Act (CEA) by operating an unregistered commodity pool and failing to provide required cautionary and risk disclosure statements to clients or prospective clients. The order further finds that Brazil and Preston failed to register with the Commission as associated persons.
Boston Trading, which is owned in equal shares by Brazil and Preston, began accepting and pooling customer funds for investment in February 2002, according to the Commission's order. Since that time, the order finds, as a result of solicitations by Brazil and Preston, customers have transferred funds to Boston Trading for investment in the commodity pool. During this time, the order also finds, Boston Trading, Brazil, and Preston failed to register with the CFTC as required by the CEA and CFTC regulations.
Without admitting or denying the findings of the order, Boston Trading, Brazil, and Preston consented to the entry of the CFTC order directing that they cease and desist from further violations of the CEA as charged, and pay, jointly and severally, monetary penalty in the amount of $10,000.
The following CFTC Division of Enforcement staff were responsible for this action: Robert Hildum, Mary Kaminski, Timothy Mulreany, and Paul Hayeck.
Paul G. Hayeck, Associate Director
CFTC Division of Enforcement
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