Commodity Futures Trading Commission
Office of External Affairs (202) 418-5080
Three Lafayette Centre
1155 21st Street, NW
Washington, DC 20581

Release: 4944-04
For Release: June 29, 2004


Worldwide Forex, Inc., Global Atlantic Management, Inc., and A Principal Allegedly Told Customers that the Possibility of War with Iraq Would Result in Significant Profits

WASHINGTON, D.C. - The U.S. Commodity Futures Trading Commission (CFTC) announced today that on June 21, 2004, it filed a two-count enforcement complaint in the U.S. District Court for the Southern District of Florida against Worldwide Forex, Inc. and Global Atlantic Management, Inc of Fort Lauderdale, Florida, and Steven Labell of Plantation, Florida, alleging that defendants fraudulently induced customers to trade foreign currency futures contracts (forex). On June 24, 2004, the Honorable Adalberto Jordan entered a restraining order, freezing the defendants' assets and preventing the destruction or alteration of their books and records.

The CFTC complaint alleges that the defendants solicited customers by exaggerating the likelihood that they would profit from trading forex, including telling customers that the (then) possibility of war with Iraq made it likely that the customers’ trades would result in significant profits. The complaint also charges defendants with failing to adequately disclose the actual risks of trading forex. The complaint also alleges that defendants falsely represented to customers that risks of loss were minimal, while failing to disclose that, from April 2002 to February 2004, approximately 99 percent of customers lost money, with total losses exceeding $1.8 million.

Judge Schedules a Hearing for July 2, 2004

In its continuing litigation, the CFTC is seeking preliminary and permanent injunctive relief, return of funds to defrauded customers, repayment of ill-gotten gains, and an award of monetary penalties. Judge Jordan has scheduled a hearing for July 2, 2004, on the CFTC’s motion for a preliminary injunction.

The following CFTC Division of Enforcement staff members are responsible for this case: Frank Rangoussis, Jed Silversmith, Jan M. Folena, and Richard Glaser.

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Note to Editors:

CFTC Consumer Advisories Warn Customers to Protect Themselves from the Many Types of Fraudulent Commodity Scams
The CFTC has published several Consumer Advisories (posted on the CFTC website at alerting the general retail public to warning signs of possible fraudulent commodity scams and offering precautions customers should take before committing funds.The CFTC Consumer Advisories, among other things, alert customers to beware of solicitations to trade commodity futures and option contracts based on claims that a lot of money with little risk can be made by trading commodities that are affected by well-known current world events, including the war on terrorism. An Advisory also urges customers to scrutinize solicitations to trade futures and options on foreign currencies (forex) (see CFTC Advisory, Beware of Foreign Currency Trading Fraud).

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Media Contacts
Alan Sobba
(202) 418-5080
Dennis Holden
(202) 418-5088
Office of External Affairs

Staff Contact
Richard Glaser Associate Director
CFTC Division of Enforcement
(202) 418-5358

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