Release: 4288-99 (Civ-96-8202-Gonzalez)
For Release: July 19, 1999
FLORIDA FEDERAL COURT ENTERS PERMANENT INJUNCTION AGAINST MICHAEL INDIHAR, COMPUTER WAREHOUSE, INC., AND AUTOMATED TRADING SYSTEMS INC., IN CFTC ANTI-FRAUD ACTION FILED IN 1996
CFTC Alleged that the Defendants Cheated and Defrauded Florida Investors in a Commodity Pool, and Converted Customer Funds to Personal Use, Among Other Violations of Federal Commodity Law
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that the Honorable Jose A. Gonzalez, Jr. of the United States District Court for the Southern District of Florida entered a final order of permanent injunction against Michael Indihar of Jupiter, Florida, Computer Warehouse, Inc. (CWI), and Automated Trading Systems, Inc. (ATSI), which were both Florida corporations based in Jupiter.
The court's order stems from a seven-count CFTC complaint filed on April 1, 1996, against the three above-named defendants and Robert Hoffman of Wellington, Florida, alleging that, from July 1995 to April 1996, they violated the anti-fraud, registration, disclosure, reporting, and record keeping provisions of the Commodity Exchange Act (CEA) and CFTC regulations in the operation of a commodity pool (see CFTC News Release 3900-96, April 5, 1996). The defendants cheated and defrauded customers by, among other things, misrepresenting and/or failing to disclose the likelihood of profit and risk of loss associated with trading commodity futures, and misrepresenting to customers the performance and track record of the defendants' commodity futures trading, the complaint alleged. The defendants also acted and operated as a futures commission merchant and/or commodity salespersons without being registered with the CFTC.
Without admitting or denying the allegations of the complaint, Indihar, CWI, and ATSI consented to the entry of the order of permanent injunction that permanently enjoins them from further violating the provisions of the CEA and CFTC regulations as alleged in the complaint. The order does not require payment of restitution and does not impose a civil monetary penalty, based upon the defendants' sworn representations concerning their financial circumstances.
The CFTC is continuing its litigation in this case against Robert P. Hoffman.
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