Release: #4029-97 (Civ 97-2927)
For Release: June 19, 1997
CFTC Files Anti-Fraud Enforcement Action Against Murray Ira Rosenberg
(d/b/a Pro Broker Services, Inc.) of Mullica Hill, New Jersey
CFTC Alleges that Rosenberg Cheated and Defrauded a Customer by, Among Other Things, Misappropriating $265,000
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today the filing of a six-count civil injunctive complaint in the U.S. District Court for the District of New Jersey, Camden Division, against Murray Ira Rosenberg (d/b/a Pro Broker Services Inc.) of Mullica Hill, New Jersey. Rosenberg was registered with the CFTC as a floor broker from April 9, 1985 until January 21, 1995, and he is not currently registered with the CFTC in any capacity.
The complaint alleges that from 1993 to 1996, Rosenberg committed fraud and other violations of the Commodity Exchange Act (CEA) and CFTC regulations, in connection with the offer and sale of commodity futures and options contracts.
Specifically, the CFTC complaint alleges that Rosenberg, among other things:
misappropriated and converted $265,000 of a customer's funds for his own business and personal living expenses;
misrepresented that he would open an account for the customer in the customer's name, when instead Rosenberg opened the account in his own name;
failed to execute and transmit commodity futures and options trades that the customer had requested him to make;
executed trades in the account without the customer's knowledge or approval; and
provided the customer with IRS form 1099s containing false information.
In addition, the complaint alleges that Rosenberg acted as a futures commission merchant without being registered with the CFTC, commingled the customer's funds with his own, and failed to provide the customer with the appropriate transaction confirmations and account statements.
The CFTC is seeking a permanent injunction prohibiting Rosenberg from violating the CEA and CFTC regulations as charged, an order prohibiting Rosenberg from trading on or subject to the rules of any contract market, and other equitable relief, including an accounting, disgorgement of benefits, rescission, and restitution. The CEA also provides for a civil monetary penalty of up to $100,000 or triple the monetary gain to the defendant, whichever is greater, for each violation of the CEA or CFTC regulations.