New York Court Bars Oscar A. Klitin and Klitin Associates II, L.P. from the Futures Industry and Orders Klitin to Disgorge Misappropriated Investors' Funds In CFTC Enforcement Action; Injunction Stems from a 1997 CFTC Action Charging Fraud

Release: �� #4298-99 (E.D.N.Y CV 97 4973 (SJ) (RL))
For release: �� August 5, 1999

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that U.S. District Court Judge Sterling Johnson, Jr. of the Eastern District of New York entered a consent order of permanent injunction against Oscar A. Klitin of Great Neck, New York, and Klitin Associates II, L.P., a New York Limited Partnership operated by Klitin as a commodity pool.

The court's order, entered on August 4, 1999, stems from a three-count complaint filed by the CFTC on August 26, 1997 against Klitin and Klitin Associates II., L.P. (see CFTC News Release #4044-97 August 28, 1997). The complaint charged the defendants with, among other things, fraudulently operating a commodity pool by misappropriating more than $200,000 in customer funds and by misrepresenting the pool's financial condition to pool participants.

Without admitting or denying the charges in the CFTC complaint, Klitin consented to the entry of the order which, among other things:

1) permanently enjoins the defendants from further violations of the Commodity Exchange Act and CFTC regulations;

2) orders Klitin to disgorge $115,772.86 (including prejudgment interest totaling $31,983.17); and

3) prohibits the defendants from soliciting or accepting new clients or participants for commodity futures or options trading, acting in any capacity that requires registration with the Commission, and from trading on any contract market subject to Commission regulation.

By entry of a consent order on March 3, 1999, Judge Johnson appointed the National Futures Association as the court's Monitor and directed it to make an interim distribution to the investors in Klitin Associates II, L.P. of the more than $100,000 that was frozen in a Klitin Associates II, L.P. account by a court order issued on the filing of the Commission's complaint.

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