Release #3995-97 (Civ 96-14284)
For Release: February 27, 1997
FLORIDA COURT ISSUES PERMANENT INJUNCTION AGAINST JAMES V. DOWLER, JR., AND DOWLER & BEEKMAN TRADING CO., ORDERING CUSTOMER RESTITUTION OF NEARLY $1 MILLION, AMONG OTHER SANCTIONS
Settlement Stems from Jointly Filed CFTC and State of Florida Charges that the Defendants Acted as an Unregistered CTA, Unregistered CPO and Cheated, Defrauded and Embezzled more than $970,000 From Customers
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that the Honorable James C. Paine of the U.S. District Court for the Southern District of Florida in West Palm Beach entered a consent order of permanent injunction against James V. Dowler, Jr., individually and doing business as Dowler & Beekman and Dowler & Beekman Trading Company, Ltd. (D&B Trading), formerly of Vero Beach and now of Delray Beach, Florida.
Dowler has not been registered with the CFTC in any capacity since 1986, and D&B Trading has never been registered with the Commission in any capacity.
The consent order, entered on February 19, 1997, settles an amended nine-count civil complaint, filed by the CFTC and the Florida State Department of Banking and Finance as co-plaintiffs, which alleged that the defendants violated the Commodity Exchange Act (CEA), CFTC regulations and the Florida Securities and Investor Protection Act (FSIPA) by operating as an unregistered commodity trading advisor (CTA) and unregistered commodity pool operator (CPO), by embezzling and converting customers' funds to their own uses and by defrauding customers by falsely reporting the value of their accounts. (See CFTC News Release #3964-96, November 5, 1996.)
Settlement Requires Restitution Of Almost $1 Million
As alleged in the amended complaint, Dowler and D&B Trading misappropriated customer deposits and trading profits totalling more than $970,000 from at least four customers who opened managed futures trading accounts with D&B Trading. Under the consent order entered by the court, Dowler is required to make full restitution to D&B Trading's former customers.
Under the terms of the permanent injunction, the defendants are permanently enjoined from (1) further violating the CEA, CFTC regulations and FSIPA, (2) from operating as a CTA, CPO or associating therewith, and (3) from seeking registration with the Commission in any capacity.
The court's consent order designates the National Futures Association to monitor Dowler's compliance with his restitution obligations.