For Release: November 18, 2003
U.S. COMMODITY FUTURES TRADING COMMISSION FINDS THAT TRADING ADVISOR USED WEBSITE TO MISLEAD PUBLIC ABOUT PROFITABILITY OF COMMODITY TRADING SYSTEM
Respondent George R. Harrison Settles Charges He Made False Claims About MBP Method
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 George R. Harrison (Harrison) of Claremont, New Hampshire. The CFTC order finds that Harrison fraudulently solicited clients to purchase a commodity futures trading system called the MBP Method.
Specifically, the order finds that, between November 2000 and July 2003, Harrison fraudulently solicited clients through his website, www.grharrison.com, to purchase the MBP Method, a series of trading system manuals with on-line chart updates and e-mail support. According to the order, Harrison -- in marketing the MBP 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 Harrison listed specific trading profits on his website, thereby creating the impression that each trade represented an actual, profitable trade made using the MBP Method. In fact, the order finds that all of the listed trades were hypothetical and that Harrison failed to disclose that fact as required by the CFTC's regulations.
The order further finds that Harrison 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 Harrison to Pay an $18,000 Civil Monetary Penalty
The order requires Harrison to pay an $18,000 civil monetary 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, Harrison 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: Lawrence Green, Jason Gizzarelli, Karen Kenmotsu, and Gretchen L. Lowe.
Media Enforcement Contact:
Gretchen L. Lowe, Associate Director
CFTC Division of Enforcement
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