Release #4120-98 (CFTC Docket No. 98-6)
For Release: March 11, 1998
CFTC FILES ADMINISTRATIVE COMPLAINT AGAINST JAMES W. BRADSHAW d/b/a NEURAL-TECH CAPITAL MANAGEMENT OF GREENWICH, CONNECTICUT, CHARGING SOLICITATION FRAUD AND ACCOUNT CHURNING, AMONG OTHER VIOLATIONS OF FEDERAL COMMODITY LAW AND CFTC REGULATIONS
CFTC Alleges that Bradshaw Defrauded Clients by Misrepresenting the Potential Profits and Risk of Loss Associated with Trading Futures Using a Computer Trading Program
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced the filing of a four-count administrative complaint against James William Bradshaw, doing business as Neural-Tech Capital Management, of Greenwich, Connecticut, alleging that Bradshaw committed fraud in the solicitation and trading of client accounts. Bradshaw has been registered with the CFTC as a commodity trading advisor since July 20, 1995.
The CFTC complaint, filed on March 5, 1998, alleges that from November of 1995 through August of 1997, Bradshaw defrauded several clients by materially misrepresenting the probability and magnitude of profits and risk of loss associated with trading futures using a computer trading program and his own system.
Specifically, the complaint alleges that once Bradshaw had successfully solicited managed accounts, he churned those accounts and traded for clients without authorization. In addition, the complaint alleges that Bradshaw failed to disclose the actual trading results he had previously obtained for his clients and that he failed to keep and produce documents he was required to maintain and produce.
A Public Hearing Has Been Ordered
A public hearing has been ordered to determine whether the allegations are true, and, if so, what remedial sanctions, if any, are appropriate and in the public interest.
Possible sanctions include a cease and desist order against Bradshaw, a revocation or suspension of Bradshaw's registration, a trading prohibition, restitution to customers of damages proximately caused by the violations of the respondent, and the imposition of civil monetary penalties of not more than the higher of $100,000 or triple the monetary gain to the respondent for each violation of the Commodity Exchange Act or CFTC regulations committed prior to November 27, 1996 (and not more than the higher of $110,000 or triple the monetary gain to the respondent for each violation committed on or after November 27, 1996).