Release #4055-97 (97 Civ 638)
For Release: September 24, 1997
TENNESSEE COURT ISSUES PRELIMINARY INJUNCTION
IN CFTC ENFORCEMENT ACTION AGAINST RONALD BARBACK
WASHINGTON - The Commodity Futures Trading Commission (CFTC) today announced that on September 15, 1997, the Honorable Leon Jordan of the U.S. District Court for the Eastern District of Tennessee entered a consent order of preliminary injunction against Ronald Barback of Knoxville, Tennessee, who was charged by the CFTC with defrauding at least seven customers of approximately $165,000 in violation of the anti-fraud provisions of the Commodity Exchange Act (CEA) (CFTC News Release 4045-97, August 28, 1997).
The court's preliminary injunction enjoins Barback from violating the anti-fraud provisions of the CEA as charged, and requires him to make a full accounting of funds received in connection with his commodity futures trading activities. The order also prohibits him from soliciting or accepting new client funds and from trading any commodity futures and options account for himself or for others.
The preliminary injunction also continues the provisions of the court's ex parte restraining order of August 27, 1997, prohibiting Barback from destroying, altering, or disposing of books and records and from denying the CFTC access to such documents.
The CFTC alleges that Barback misrepresented to prospective customers his performance record and the risks associated with trading commodity futures contracts, and that he guaranteed profits. Barback, who has never been registered with the CFTC, is also charged with the unauthorized trading of at least one customer's account.
In its continuing litigation, the CFTC is seeking a permanent injunction against Barback prohibiting him from violating federal commodity law as charged, requiring him to make restitution to customers, and imposing civil monetary penalties, among other remedial relief.