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

Release: #4962-04
Release Date: July 21, 2004


TradeWins Publishing Corporation and Its President, Stephen A. Schmidt, Allegedly Solicited Customers to Purchase a Trading System Using False Claims; System Developer and His Company Also Charged

WASHINGTON - The Commodity Futures Trading Commission (CFTC) announced today the filing of a federal court action on July 20, 2004, against defendants Stephen A. Schmidt (Schmidt), TradeWins Publishing Corp. (TradeWins), Shri Krishna Investment Research Corporation (SKIR), and Anand Inamdar (Inamdar). The complaint alleges that Schmidt, as President of TradeWins, fraudulently promoted a commodity trading system by making false claims that the trading system generated huge profits with little risk. The complaint further alleges that those defendants, along with Inamdar and his company SKIR, conveyed the misleading impression that trades posted on the website were actual trades that Inamdar was making.

Specifically, the complaint alleges that Schmidt fraudulently solicited customers to purchase the Natural Trigger Point System, a commodity futures trading system developed by Inamdar. The complaint alleges that the promotional materials were designed by Schmidt to mislead potential customers into believing that the System had resulted in 99% winning trades, that trading according to the System involved virtually no risk, that the buy and sell signals on the System’s web site would be used by Inamdar to place actual trades, and that the trade history would reflect those trades. The complaint further alleges that Inamdar knew Schmidt was promoting the system using a letter purportedly signed by Inamdar, and made no objection.

CFTC Also Alleges That Schmidt and TradeWins Violated April 2002 CFTC Order

The complaint also charges that, by means of the alleged false claims, Schmidt and TradeWins violated a prior CFTC consent order issued against them in April 2002. The April 2002 order found that Schmidt and TradeWins engaged in a fraud similar to that alleged in the current complaint. In the April 2002 order, the CFTC ordered TradeWins and Schmidt to cease violating the Commodity Exchange Act, to pay a $100,000 civil penalty, and to comply with undertakings prohibiting them from making misrepresentations about profits and risks associated with trading commodity futures and options. Schmidt and TradeWins consented to the entry of the April 2002 order without admitting or denying the findings in the order.

Today's complaint seeks preliminary and permanent injunctive relief, an accounting, disgorgement of ill-gotten gains, and civil penalties.

The following CFTC Division of Enforcement staff members are responsible for this case: Catherine Fuller, Tom Koprowski, Clifford Histed, Venice Bickham, Ralph DerAsadourian, Scott Williamson and Rosemary Hollinger.


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

Staff Contact
Rosemary Hollinger
Associate Director
Chicago Regional Counsel
CFTC Division of Enforcement
(312) 596-0520

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