Release: 3952-96 (Civ 96C76)
For Release: October 8, 1996
Illinois Court Issues Permanent Injunction Against Robert A. Besner and
New Forest Capital Management, Inc., in 1996 CFTC Anti-Fraud Action;
Order Permanently Bars the Defendants from the Futures Industry
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on October 2, 1996, U.S. District Court Judge John A. Nordberg entered a consent order of permanent injunction against Robert A. Besner and New Forest Capital Management, Inc., both of Northbrook, Illinois, which, among other sanctions, permanently bars the defendants from the U.S. futures markets. Besner is a registered associated person and is also president of New Forest Management, which is a registered commodity trading advisor.
The court's action stems from a five-count injunctive complaint filed on January 4, 1996, alleging that the defendants cheated and defrauded investors by misappropriating and converting customer funds, and making misrepresentations and issuing false reports and statements to investors. The defendants accepted at least $2.7 million from investors, $2.2 million of which is unaccounted for, the CFTC complaint alleged. An ex parte restraining order issued on the day the complaint was filed froze the defendants' assets. (See CFTC News Release 3885-96, January 4, 1996.)
Specifically, defendants Besner and New Forest Management agreed to:
findings that they committed all of the violations alleged in the complaint, including findings that they defrauded investors and converted investor funds;
be permanently enjoined from further violations of the commodity laws;
be permanently enjoined from registering with the CFTC and from engaging in any activity in the commodity futures industry on behalf of others;
be permanently enjoined from trading commodities for their own accounts; and
provide an accounting of customer funds.
Finally, certain issues regarding the CFTC's requests for disgorgement of profits, restitution of customer funds, and payment of a civil monetary penalty were reserved by the court due to the pendency of involuntary bankruptcy petitions filed against both Besner and New Forest Management.