For Release: September 4, 1997
CFTC FILES ANTI-FRAUD ENFORCEMENT ACTION AGAINST WILLY KERZINGER OF MICHIGAN AND SIMULTANEOUSLY ACCEPTS SETTLEMENT BARRING HIM FROM THE INDUSTRY AND REQUIRING HIM TO PAY DISGORGEMENT
Kerzinger Received About $798,700 from 22 Pool Investors As a Result of
His Fraudulent Misrepresentations
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that it has instituted administrative proceedings against Willy Kerzinger of Wyoming, Michigan, and simultaneously accepted Kerzinger's offer of settlement.
The order permanently prohibits Kerzinger from engaging in business activities related to futures trading, among other remedial actions. The CFTC's action is the result of a joint investigation by the CFTC and the Securities and Exchange Commission (SEC) of Kerzinger, who became registered with the SEC as an investment adviser in August 1989.
The CFTC's order finds that from August 1989 through June 1994, Kerzinger, doing business as Commodity Pool Service, acted as an unregistered commodity pool operator and engaged in a fraudulent scheme. According to the complaint, Kerzinger received approximately $798,700 from 22 investors in his pool as a result of his fraudulent misrepresentations, and returned approximately $630,000 to his investors in the form of cash, real estate, goods, and services, but used funds received from some investors to pay purported profits to other investors in furtherance of his fraudulent scheme. The order finds also that Kerzinger converted and misappropriated investors' funds to his own use.
Under the terms of the settlement, Kerzinger is permanently prohibited from trading commodity futures or options and agrees to:
-- pay $15,000 to defrauded investors in disgorgement;
-- never seek registration with the Commission in any capacity and never to engage in any activity requiring such registration; and
-- never accept any money, or solicit or accept orders from others for the purpose of trading commodity futures or options.
The CFTC agreed to the payment of $15,000 in lieu of full disgorgement in light of Kerzinger's financial circumstances.
Also today, the SEC filed a separate administrative proceeding alleging
federal securities violations against Kerzinger in connection with the same
investment scheme. The SEC also has accepted Kerzinger's offer of