Release: #4105-98 (97 Civ 5255)
For Release: February 12, 1998
NEW YORK COURT ISSUES PRELIMINARY INJUNCTIONS AGAINST WILLIAM SANCHEZ
AND BRIAN WILLIS IN CFTC ANTI-FRAUD ENFORCEMENT ACTION, WHICH ALSO CHARGES
WORLDWIDE COMMODITIES LTD. AND TEMPLER INTERNATIONAL LTD.
Defendants Allegedly Solicited Approximately $4 Million from More
Than 300 Customers Nationwide and Misappropriated About $1 Million of
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on January 27, 1998, Judge Miriam Goldman Cedarbaum of the U.S. District Court for the Southern District of New York entered an order of preliminary injunction against William Sanchez of Staten Island, New York, and Brian Willis of New York, N.Y.
The court's order stems from a five-count CFTC civil anti-fraud enforcement action filed under seal on July 17, 1997, alleging that Worldwide Commodities Ltd. (of Nassau, Bahamas); Templer International, Ltd. (of New York, New York); and Sanchez and Willis, presidents of Worldwide and Templer, respectively, violated sections 4b(a), 4m(1), 4o(1) and 9(a)(10) of the Commodity Exchange Act, by making false and misleading representations in soliciting customers purportedly to trade in the spot foreign currency market, by converting customer funds to their own personal and business uses, and acting as an unregistered Commodity Pool Operator and Commodity Trading Advisor. Specifically, the defendants allegedly misappropriated approximately $1 million out of approximately $4 million solicited from more than 300 customers nationwide, according to the complaint. (See CFTC News Release 4050-97, September 8, 1997.)
Judge Cedarbaum's order preliminarily restrains and enjoins Sanchez and Willis from soliciting or accepting any clients or participants, or deposits of funds, for commodity futures or options trading; giving advice on commodity futures or options trading; operating a commodity pool; engaging in commodity futures or options trading; or acting in any capacity that requires registration with the CFTC.
The order further preliminarily restrains and enjoins Sanchez and Willis from failing to inform customers and prospective customers that their funds will be traded on or subject to the rules of a contact market; failing to inform customers and prospective customers of the risks inherent in trading futures or options; making misleading statements regarding the profit potential of trading futures or options; misappropriating customer funds; and cheating or defrauding, or attempting to cheat or defraud any person in connection with any commodity futures or options trading.
In its continuing litigation, the CFTC is seeking, among other remedial relief, permanent injunctions prohibiting the defendants from violating federal commodity law and CFTC regulations as charged, restitution to allegedly defrauded customers, the imposition of civil penalties in an amount of not more than the higher of $100,000 or triple the monetary gain to each defendant for each violation of the CEA or CFTC regulation.