Release: #4310-99 (2:98CV00216J)
For Release: August 30, 1999
UTAH FEDERAL COURT ENTERS PERMANENT INJUNCTIONS AGAINST DOUGLAS FOSTER AND ROBERT MONCUR IN CFTC ENFORCEMENT ACTION CHARGING FRAUDULENT OPERATION OF THREE COMMODITY POOLS
Court Permanently Bars Foster and Moncur From Seeking Registration Or Acting In Any Capacity Requiring Registration With The CFTC and Prohibits Them From Trading For Ten Years
WASHINGTON — The Commodity Futures Trading Commission (CFTC) announced today that U.S. District Court Judge Bruce Jenkins of the U.S. District Court for Utah entered consent orders of permanent injunction against Douglas Foster of North Salt Lake, Utah, on August 18, 1999, and against Robert Moncur of Bountiful, Utah, on August 25, 1999, in a case involving the fraudulent operation of commodity pools.
The court's orders stem from a six-count complaint filed by the CFTC on March 27, 1998, against Foster, Moncur and six others (see CFTC News Release #4129-98, April 1, 1998). The CFTC's complaint charged Foster and Moncur, among other defendants, with fraudulently soliciting investors, issuing false statements, and misappropriating customer funds in connection with three commodity pools, Capital Advantage Group II, L.L.C., Brighton Fund, L.L.C., and Augusta Fund, L.L.C. According to the complaint, 23 pool participants invested approximately $325,000 in these three pools. Foster was also charged with fraudulently soliciting investors in connection with a fourth commodity pool, Sunrise Fund, L.L.C. Sunrise Fund allegedly received approximately $127,000 from 18 investors. The investors in all four of these pools resided in Utah.
Without admitting or denying the allegations in the CFTC complaint, Foster and Moncur consented to be, among other things:
1) permanently enjoined from further violations of the Commodity Exchange Act and CFTC regulations, as charged;
2) prohibited from soliciting or accepting new clients or participants for commodity futures or options trading and seeking registration or exemption from registration in any capacity with the CFTC; and
3) prohibited from trading any commodity futures contracts or options on commodity futures contracts for their own personal accounts or having any such contracts traded on their behalf for a period of 10 years.
In addition, the court ordered Moncur to disgorge $21,505, representing his gross profits from the conduct alleged in the CFTC's complaint. The order acknowledges that Moncur has already satisfied this obligation.
This case was filed as the result of a joint investigation by the CFTC's Division of Enforcement and the State of Utah, Division of Securities. As a result of this investigation, over $850,000 was returned to victims of this fraudulent scheme and a related securities scheme.
In its continuing litigation against the remaining defendants, John Larry Schenk, Sam Gray, Fidelity Traders Group, Brian Tobler, Mark Schenk and John Steven Schenk, the CFTC is seeking an order of permanent injunction, an accounting, disgorgement of all ill-gotten gains, restitution to the defrauded investors and civil monetary penalties.
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