For Release:May 8, 1997
CFTC FILES ANTI-FRAUD ENFORCEMENT ACTION AGAINST
ROBERT H. RUTMAN OF AMBLER, PENNSYLVANIA,
SEEKING PRELIMINARY AND PERMANENT INJUNCTIONS
CFTC Civil Action Charges Rutman with Committing Fraud and Acting as an Unregistered Futures Broker, Among Other Violations of Federal Commodity Law
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today the filing of a four-count anti-fraud civil injunctive complaint in the U.S. District Court for the Eastern District of Pennsylvania against Robert H. Rutman of Ambler, Pennsylvania. Rutman has never been registered with the CFTC in any capacity.
The complaint, filed on May 1, 1997, alleges that from at least February 1995 to March 1997, Rutman engaged in fraudulent conduct and other activities involving commodity futures trading, all in violation of the Commodity Exchange Act (CEA) and CFTC regulations.
Specifically, the complaint charges that Rutman, among other things, fraudulently solicited at least one customer by misrepresenting his track record as a futures trader and the potential risks of trading commodity futures. The complaint further alleges that Rutman continuously misrepresented to at least one customer that the futures trading on the customer's behalf was profitable when, in fact, the trading was at all times unprofitable and the customer's money was lost in futures trading.
Registration and Other Violations Also Alleged
The complaint also alleges that Rutman failed to register with the CFTC as a futures commission merchant, commingled customer funds with his own, guaranteed at least one customer that he would not lose his principal, and failed to provide at least one customer the required risk disclosure statements, transaction confirmations, and account statements.
In its litigation against the defendant, the CFTC is seeking preliminary and permanent injunctions prohibiting Rutman from violating Federal commodity law in addition to other remedial relief, including an accounting, disgorgement of profits, restitution to customers, and a civil monetary penalty of up to $110,000 or triple the monetary gain to the defendant for each violation of the CEA or CFTC regulations.