Release: 4013-97 (Civ 95-C-5422)
For Release: April 22, 1997
U.S. DISTRICT COURT IN ILLINOIS ISSUES PERMANENT INJUNCTION
IN CFTC ANTI-FRAUD ACTION AGAINST GARY BRUCE ANDERSON
Court Order Permanently Bars Anderson from the Futures Industry and
WASHINGTON - The Commodity Futures Trading Commission (CFTC) announced that on April 18, 1997, U.S. District Court Judge Milton Shadur for the Northern District of Illinois entered a consent order of permanent injunction against Gary Bruce Anderson, formerly of Wayne and Geneva, Illinois, but currently of Syracuse, Indiana. Anderson has never been registered with the CFTC in any capacity. The court's action concludes a CFTC anti-fraud action brought against Anderson on September 22, 1995 (CFTC News Release #3868-95, October 11, 1995).
Anderson admits and the permanent injunction finds that Anderson fraudulently solicited approximately $500,000 from more than 30 investors in Indiana and Illinois to trade commodity futures from 1990 through September 1995.
The order also finds and Anderson admits that he misrepresented material facts to potential investors he solicited for commodity trading programs while acting as an unregistered commodity trading advisor and futures commission merchant. The order also finds that Anderson willfully prepared and distributed fabricated statements which:
The court found that these misrepresentations constitute violations of Sections 4b and 4o of the Commodity Exchange Act (CEA).
The order also finds and Anderson admits that he misappropriated investor funds and converted more than half of the funds he collected to his own use and the use of others, including using those funds to pay his own mortgage, his children's private school tuition, and other personal expenses. In so doing, Anderson commingled investors' funds with his own and those of his family and did not segregate customer funds, as required by CFTC regulations.
The order permanently enjoins Anderson from further violations of the CEA, as charged, and permanently enjoins him from 1) trading commodity futures or options for himself or on behalf of others, 2) advising others in connection with the trading of commodity futures or options, and 3) soliciting or receiving money from others to trade commodity futures or options. The order also bars Anderson from ever seeking registration with the Commission in any capacity.
Finally, Anderson is ordered to pay restitution. IRS tax liens
reportedly are already outstanding against Anderson's assets.