For Release: February 6, 1997
U.S. District Court In Colorado Issues Orders Of Permanent Injunction In CFTC Anti- Fraud Action Against Brian Prendergast Of Colorado And Joel De Angelis Of California In 1996 Prism Case
WASHINGTON - The Commodity Futures Trading Commission (CFTC) announced that Judge Walker Miller of the U.S. District Court for the District of Colorado in Denver entered consent orders of permanent injunction against Brian Prendergast, the president and principal officer of Prism Financial Corporation, both of Englewood, Colorado, and Joel De Angelis, a principal of Prism who resides in Los Gatos, California. The court's action concludes a CFTC anti-fraud action against the defendants filed on February 20, 1996 (CFTC News Release 3892- 96, February 26, 1996).
Prism Financial and Amerinational Financial Services, a Prism sales agent located in Beverly Hills, California, were also charged in the six-count complaint, which alleged that the defendants violated the anti-fraud, conversion/embezzlement, registration, and disclosure provisions of the Commodity Exchange Act. The complaint alleged that the defendants cheated and defrauded at least 34 customers out of nearly $1 million by making false, deceptive, or misleading representations in soliciting investors to invest in Prism Financial Limited Liability Company, a commodity pool created by Prendergast and operated by Prism Financial Corporation.
The court's injunctive orders permanently prohibit Prendergast and De Angelis from seeking registration with the CFTC in any capacity or engaging in any activity that requires registration with the Commission, effectively barring them from the futures industry. In addition, the orders enjoin them from further violations of Federal commodity law as charged.
Furthermore, the court entered default judgments against Prism Financial and Amerinational Financial prohibiting them from violating provisions of Federal commodity law, as charged, and requiring Prism to pay restitution totaling $946,148.64 to defrauded investors, and requiring Amerinational to disgorge all ill-gotten gains in the amount of $2,496.16.