For Release:October 15, 1996
CFTC ESTABLISHES SPECIAL INTERNET WEB PAGES SEEKING WHEREABOUTS OF DEFENDANT DONALD B. CHANCEY, WHO FLED WITH CUSTOMER FUNDS
The posting of Chancey's photograph on the Worldwide Web (WWW.CFTC.GOV) Is the
Latest Strategy in the CFTC's Ongoing Effort to Locate Customers' Missing Funds
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced that it has established pages on its Worldwide Web site to help locate Donald B. Chancey, a defendant in a CFTC civil injunctive action filed in July, who disappeared after allegedly embezzling $3 million from at least 19 investors in an unregistered commodity pool.
The Web pages depict a photograph of defendant Chancey and seek information on Chancey's current whereabouts from members of the public. The newly posted web pages also provide information on an upcoming court-authorized auction of Chancey's real and personal property. Persons who have seen Chancey can e-mail to the CFTC's Division of Enforcement a form included on the special Chancey Web pages.
Chancey's Photograph and Information About the Case Is
Posted on the Internet at www.cftc.gov
The posting of Chancey's photograph on the Worldwide Web is the latest strategy the CFTC has used in its ongoing effort to locate Chancey and the missing investor funds. Upon a motion by the CFTC, the court has issued a Writ of Ne Exeat, a court order directing the U.S. Marshals Service to locate Chancey and hold him in custody until he posts a $3 million bond. The court has also authorized the CFTC to serve Chancey with the summons and complaint in the suit by publishing information about the suit in a local newspaper.
The CFTC, on July 1, 1996, filed a six-count civil injunctive complaint in the U.S. District Court for the Middle District of Georgia charging that Southeastern Venture Partners Group (SVPG), a commodity pool operator, and Chancey, chief executive officer and a principal of SVPG -- both of Valdosta, Georgia, violated the anti-fraud provisions of the Commodity Exchange Act (CEA) and CFTC regulations. The complaint alleges that defendants fraudulently solicited customers to invest in an unregistered commodity pool; misappropriated funds by using them for personal and unrelated business expenses; and violated numerous disclosure, reporting, and recordkeeping requirements of Federal commodity law and CFTC regulations. Neither of the defendants is registered with the CFTC in any capacity. (See CFTC News Release 3929-96, August 6, 1996.)
-The CFTC complaint charges that since at least 1991, Chancey and SVPG fraudulently solicited customers to invest in a commodity pool, furnished customers with a promissory note guaranteeing a 23 percent annual return, pocketed some of the funds received from pool investors, and perpetuated their fraud by furnishing customers with phony account statements and reports, among other alleged violations.
On the same day the complaint was filed, the court entered an ex parte order against Chancey and SVPG, freezing their assets, appointing a receiver to take charge of the business operations and assets, and protecting books and records.
In its continuing litigation against the defendants, the CFTC is seeking preliminary and permanent civil injunctions, in addition to other remedial relief, including restitution to investors. The complaint also seeks a civil monetary penalty against each defendant in the amount of $100,000, or triple the monetary gain to the defendants, whichever is greater, for each violation.