Release:#4005-97 (CFTC Docket 97-7)

For Release:March 19, 1997

CFTC FILES COMPLAINT CHARGING EUGENE LYON JEWETT, II, OF

LOS ANGELES WITH VIOLATING FEDERAL COMMODITY LAW

Jewett Allegedly Illegally Accepted Some $32,000 from at Least Four Customers to Trade Commodity Futures and Options Contracts

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) today announced the filing of a three-count administrative complaint against Eugene Lyon Jewett, II, of Los Angeles, California. Jewett has never been registered with the CFTC in any capacity. He was employed as a clerk for a floor broker in the Eurodollar options pit at the Chicago Mercantile Exchange from March to November 1994.

The CFTC complaint alleges that Jewett violated the Commodity Exchange Act (CEA) and CFTC regulations by acting as a futures commission merchant (FCM) without being registered as such with the CFTC, and when he solicited and accepted at least $32,000 from at least four customers to open accounts and trade commodity futures and options on behalf of those customers.

The complaint also charges Jewett with commingling customer money with his own, failing to segregate customer money, and failing to furnish customers with a written risk disclosure statement, as well as monthly statements and confirmation statements, as required by Federal commodity law and CFTC regulations.

A public hearing is to be held to determine whether the allegations against Jewett are true and to determine what sanctions should be imposed. Possible CFTC sanctions include: a cease and desist order prohibiting Jewett from violating provisions of the CEA and CFTC regulations; a personal trading prohibition; restitution to customers; and, civil penalties of not more than the higher of $110,000 or triple the monetary gain to Jewett for each violation of the CEA and CFTC regulations.

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