Release: #4045-97 (97 Civ. 638)
For Release: August 28, 1997
CFTC FILES TWO-COUNT ANTI-FRAUD ENFORCEMENT ACTION AGAINST RONALD BARBACK, A TENNESSEE-BASED COMMODITY TRADING ADVISOR
Court-Issued Ex Parte Order Prohibits the Defendant From
Destroying or Altering Books and Records
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on August 27, 1997, the Honorable Leon Jordan, U.S. District Court Judge for the Eastern District of Tennessee, entered an ex parte asset freeze order against Ronald Barback of Knoxville, Tennessee, prohibiting Barback from destroying, altering, or disposing of books and records. Barback has never been registered with the CFTC in any capacity.
The court's action stems from a two-count CFTC civil injunctive complaint filed on August 27, 1997, charging Barback with defrauding at least seven customers of at least $165,000 in violation of the anti-fraud provisions of the Commodity Exchange Act (CEA).
The CFTC complaint specifically alleges that Barback misrepresented to prospective customers his performance record and the risks associated with trading commodity futures contracts, and that he guaranteed certain prospective customers that they would profit from futures trading. In addition, Barback is charged with the unauthorized trading of at least one customer's account.
Hearing Scheduled for September 10th
In its continuing litigation against the defendant, the CFTC is seeking preliminary and permanent injunctions in addition to other remedial relief, including restitution to customers, a trading prohibition, and civil penalties in an amount of not more than the higher of $110,000 ($100,000 for violations occurring before November 28, 1996) or triple the monetary gain to the defendant, whichever is greater, for each violation of the CEA or CFTC regulations.
A hearing on the preliminary injunction is scheduled on September 10, 1997.