Release: #4071-97 (CFTC Docket No. 94-14)
For Release: October 30, 1997
CFTC ACCEPTS SETTLEMENT OFFER OF EDWARD T. HAMLET OF BOCA RATON, FLORIDA, FINDING THAT HE AIDED AND ABETTED COMMODITY FRAUD
Hamlet Agrees to be Permanently Barred from the Futures Industry
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on October 28, 1997, it issued an order accepting an offer of settlement from Edward T. Hamlet, of Boca Raton, Florida, finding that Hamlet aided and abetted others in defrauding 6,000 foreign commodity pool investors in violation of the Commodity Exchange Act.
Hamlet is one of several respondents in an administrative action pending before the CFTC entitled In the Matter of Jerry W. Slusser, et al., CFTC Docket No. 94-14 (CFTC Press Release #3766-94, May 27, 1994). The complaint alleges, among other things, that Jerry W. Slusser and First Republic Financial Corporation (formerly Vancorp Financial Services (VFS)) committed commodity pool fraud by misappropriating over $4 million from foreign investors in two commodity pools.
In the settlement order, the CFTC made findings that Hamlet, as vice president of VFS, knowingly participated in directing the trading of millions of dollars of commodity pool money in futures and securities during May through September 1989 for the purpose of meeting Slusser's goal of earning $2.25 million in commissions. The order also finds that Slusser and companies owned and controlled by him received over $2.9 million in commissions and fees, while investors lost $4.2 million.
Hamlet, without admitting or denying the findings in the CFTC'S order, agreed to cease and desist from further violations of federal commodity law and:
never to solicit or accept money from any person in connection with the purchase or sale of any commodity interest contract;
never to give advice in connection with the purchase or sale of any commodity interest contract to anyone other than his employer in connection with his employer's proprietary trading;
never to introduce customers to any person or issue statements to others concerning commodity interest trading; and
never to apply for registration with the CFTC in any capacity and never to engage in any activity requiring registration, effectively barring him from the futures industry. Hamlet was formerly registered with the CFTC as an associated person of First Republic Trading Corporation and as a commodity pool operator.
In addition, Hamlet agreed to cooperate fully with the CFTC's Division of Enforcement in its prosecution of the complaint in this proceeding. Also named in the complaint and remaining as respondents in the continuing litigation are: Slusser of Las Vegas, Nevada and Indianapolis, Indiana; Hans J. Brinks of Germany; and First Republic Financial Corporation and First Republic Trading Corporation, Indiana corporations located in Las Vegas, Nevada. In January 1997, the CFTC settled the proceeding with another respondent, Cantor Fitzgerald & Co., a securities and commodity futures broker (see CFTC News Release #3987-97, January 28, 1997).