Release: 4104-98 (CFTC Docket 98-5)
For Release: February 9, 1998
CFTC INSTITUTES PROCEEDINGS AGAINST WILLIAM KOERNER
AND IV GREAT RIVER CORP. -- BOTH OF VERO BEACH, FLORIDA -- ALLEGING
FRAUD AND SIMULTANEOUSLY SETTLES THE CHARGES
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) has entered an Order Instituting Proceedings, Making Findings and Imposing Remedial Sanctions against William Koerner of Vero Beach, Florida, and IV Great River Corporation (GRC), a Delaware corporation controlled by Koerner and also located in Vero Beach. Koerner and GRC consented to the entry of the order. Koerner has not been registered with the CFTC in any capacity for the past 15 years; GRC has never been registered with the CFTC.
The CFTC order, filed on January 23, 1998, finds that from April 1995 until at least June 13, 1996, Koerner, through IV Great River Corp., defrauded at least one customer, who invested $40,000 with Koerner through GRC, after Koerner made material misrepresentations and omissions regarding the probability and magnitude of profits and risk of loss associated with futures and options trading.
In its order, the CFTC accepted Koerner's and GRC's offer of settlement, in which they neither admit nor deny the findings in the order. Specifically, the order contains findings that Koerner and GRC violated Sections 4b(a), 4(d)(1) and (2), 4k(1) and 9(a)(1) of the Commodity Exchange Act, and Sections 1.20(c), 1.33, 1.55 and 3.12 of the CFTC's regulations.
The CFTC order: 1) prohibits Koerner and IV Great River Corp from committing similar violations in the future; 2) bars both entities from trading on or subject to the rules of any contract market; and 3) directs all contract markets to refuse them trading privileges.
Though finding that Koerner's and GRC's violations warrant both restitution and a civil monetary penalty, the CFTC, on the basis of the respondents' financial condition, determined not to impose either sanction.