U.S. COMMODITY FUTURES TRADING COMMISSION CHARGES COMMODITY TRADING ADVISOR NEXGEN SOFTWARE SYSTEMS, INC., AND OWNER JOHN P. NOVAK WITH COMMODITIES FRAUD
Defendants Allegedly Solicited Customers to Purchase Their Advisory Services Using False Claims; Nexgen and Novak also Failed to Register as Commodity Trading Advisors
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a federal court action against defendants Nexgen Software Systems, Inc. (Nexgen) and John P. Novak, both of The Woodlands, Texas, alleging that Nexgen, through Novak, used fraudulent and misleading representations to solicit members of the general public to direct the trading in their commodity interest accounts. The complaint further alleges that Nexgen failed to register with the CFTC as a commodity trading advisor (CTA).
According to the complaint, Novak fraudulently solicited customers by falsely representing that both he and his customers were trading profitably using the Nexgen service. In reality, the complaint alleges, neither Novak nor any of his customers ever profited using the service.
The complaint further charges that Nexgen held itself out to the
public as a CTA and directed the trading of more than 15 client
accounts, and thus should have been registered as a CTA with the
CFTC. In addition, Nexgen allegedly failed to provide disclosure
documents to clients as required by the Commission’s
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