U.S. COMMODITY FUTURES TRADING COMMISSION SETTLES FRAUD CHARGES WITH NEVADA MARKETING FIRM, PROFIT PARTNERS INC.
Firm Barred From Fraudulently Soliciting Customers to Purchase Commodity Futures and Options Trading Systems
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today that the United States District Court for the Central District of California entered a consent order settling the CFTC’s action against Profit Partners, Inc. (Profit Partners). The consent order bars Profit Partners from fraudulently soliciting customers to purchase commodity futures and options trading systems.
The order stems from a complaint filed by the CFTC on December 22, 2003 (see CFTC News Release 4898-04, March 11, 2004), and finds that on certain occasions, Profit Partners, through its employees, made profit claims exceeding the hypothetical results verified by the program developer, failed to provide the required hypothetical trading performance disclosure, and falsely claimed that the trading systems were approved by the CFTC. As the order finds, the CFTC does not verify, endorse, or otherwise pass upon the adequacy of any trading system.
The consent order requires that Profit Partners pay a $30,000 civil monetary penalty, and permanently enjoins it from engaging in fraud or making misrepresentations in violation of the Commodity Exchange Act regarding the commodity futures and options trading systems it sells.
In consenting to the order, Profit Partners neither admitted nor denied the findings in the order.
The following Commission staff members were responsible for this case: James H. Holl, III, Kevin Batteh, Erin E. Vespe, Gretchen L. Lowe, and Vincent McGonagle.
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