Release: #4128-98 (Civ 3-97-638)
For Release: March 31, 1998
ENNESSEE COURT ISSUES PERMANENT INJUNCTION IN CFTC ENFORCEMENT ACTION AGAINST RONALD BARBACK OF KNOXVILLE
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on March 24, 1998, the Honorable Leon Jordan of the United States District Court for the Eastern District of Tennessee entered a consent order of permanent injunction against Ronald Barback of Knoxville, Tennessee.
The court's order enjoins Barback from violating the anti-fraud provisions of the Commodity Exchange Act (CEA), requires him to pay restitution to customers, prohibits him from ever soliciting, accepting or trading new client funds, and for a period of three years prohibits him from trading any commodity futures and options account for himself. Barback's restitution payments to customers will be monitored by the National Futures Association.
The court's order of permanent injunction stems from a civil injunctive complaint filed by the CFTC on August 27, 1997, which alleged that since at least 1987 Barback defrauded at least seven of his clients by guaranteeing profits and misrepresenting both his track record and the risks associated with commodity futures trading, all in violation of the anti-fraud provisions of the CEA. (See CFTC News Release #4045-97, August 28, 1997). The court previously entered a consent order of preliminary injunction against Barback on September 15, 1997.