Release #4153-98 (98 CIV 1682)
For Release: June 8, 1998
COURT ISSUES CONTEMPT ORDER AGAINST SHAUN SCHLOSSMACHER FOR FAILING TO COMPLY WITH ORDER REQUIRING ACCOUNTING
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that the Honorable Denny Chin of the United States District Court Southern District of New York has issued an order finding Shaun M. Schlossmacher, of Atlanta, Georgia, in contempt of court for failing to comply with the court's order for a preliminary injunction entered on April 15, 1998. In particular, Schlossmacher failed to provide the court and the CFTC with an accounting as required under the April 15, 1998, court order.
The preliminary injunction was entered by default in a two-count anti-fraud enforcement action filed by the CFTC on March 6, 1998 (see CFTC News Release #4126-98, March 23, 1998). The CFTC's complaint alleged that from September 1997 through February 1998, Schlossmacher solicited and received over $1.1 million from investors who were told that, among other things, the fund, called the Chloris fund, would invest in S&P futures through established futures exchanges. Allegedly, Schlossmacher never invested in any futures and misappropriated much of the invested funds for his own benefit.
The court ordered that Schlossmacher appear before the court on June 12, 1998, or a warrant will be issued for his arrest.