ST. LOUIS RESIDENT KENNETH LEE AND HIS COMPANY ORDERED TO PAY MORE THAN $567,000 TO DEFRAUDED COMMODITY CUSTOMERS
Court Permanently Bans Defendants From Trading
WASHINGTON D.C. - The U.S. Commodity Futures Trading Commission (CFTC) announced today that the United States District Court for the Eastern District of Missouri issued a consent order requiring Kenneth Lee of St. Louis, Missouri and his company KJL Financial Group, Inc. (KJL) to repay defrauded customers more than $567,000, among other sanctions.
The consent order, entered earlier this month by the Honorable Charles Shaw, settles CFTC charges arising out of the CFTC’s September 30, 2002, complaint in CFTC v. Kenneth Lee and KJL Financial Group, Inc. (see CFTC News Release 4706-02, October 2, 2002).
The CFTC complaint charged Lee and KJL with misappropriating funds they had solicited and accepted from customers for purposes of trading commodity futures contracts. The complaint also alleged that the defendants issued false account statements showing that customers' accounts were profitable, when, in fact, the defendants’ trading was not profitable and the defendants did not even use most of the funds for commodity futures trading.
In consenting to the entry of the order, Lee neither admitted nor denied the allegations of the complaint. The order also imposes on Lee a monetary penalty of $300,000, enjoins Lee and KJL from committing violations of the Commodity Exchange Act, permanently prohibits Lee and KJL from trading commodity futures or options, and also prohibits them from soliciting, accepting or receiving funds for that purpose.
The following CFTC Division of Enforcement staff were responsible for the case: William Janulis, Michael Tallarico, Scott R. Williamson, and Rosemary Hollinger.
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