Federal Court Orders New Jersey Resident James I. Weiss and Clearview Capital Management, Inc. to Pay Sanctions of $800,000 in Foreign Currency Fraud Case
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today that on January 21, 2005, the U.S. District Court in Newark, New Jersey, entered an order of permanent injunction against defendants James I. Weiss and Clearview Capital Management, Inc. (Clearview), both of Fort Lee, New Jersey.
The order requires Weiss and Clearview to pay a total of $800,000, consisting of $560,000 to defrauded customers, and $240,000 as a monetary penalty.
The court’s order represents the final judgment in a case filed by the CFTC on January 8, 2004 (see CFTC News Release 4877-04, January 13, 2004). The order finds that Weiss, while acting as an agent of Clearview, committed fraud in violation of the Commodity Exchange Act (CEA) and CFTC regulations.
Specifically, the order finds that, between July 2002 and June 2003, Weiss, through Clearview, solicited at least 42 customers using false performance records and false claims about the expertise of Clearview’s chief trader, while also failing to disclose to customers the compensation defendants received from the trading they conducted for customers.
In addition to the money sanctions, the court’s order also enjoins Weiss and Clearview from further violations of the CEA as alleged in the complaint, and permanently prohibits them from seeking registration with the CFTC or acting in any capacity requiring CFTC registration.
The following CFTC Division of Enforcement staff members were responsible for this case: Michael Amakor, Patricia Gomersall, Todd Kelly, Grant Collins, Paul Hayeck, and Joan Manley.
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