For Release: November 12, 1999
CFTC FILES CIVIL ENFORCEMENT ACTION AND OBTAINS RESTRAINING ORDER AGAINST FRED MONTE, JEANNE H. MONTE, AND COMP TECH LTD. INC., ALL OF BOCA RATON, FLORIDA, IN CONNECTION WITH THE ALLEGEDLY FRAUDULENT SALE OF A TRADING SYSTEM FOR FOREIGN CURRENCY FUTURES CONTRACTS
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that, on October 29, 1999, the U.S. District Court for the Southern District of Florida entered a revised restraining order against Fred Monte, Jeanne H. Monte, and Comp Tech Ltd., Inc. all of Boca Raton, Florida, defendants in CFTC v. Fred Monte, Jeanne H. Monte, and Comp Tech Ltd., Inc., Case No. 99-8750-CIV-RYSKAMP, which the CFTC filed on September 29, 1999. Fred Monte and Jeanne Monte are the president and the secretary, respectively, of Comp Tech, a Florida corporation. None of the defendants has ever been registered with the CFTC in any capacity.
On October 1, 1999, U.S. District Judge Kenneth L. Ryskamp had entered a restraining order that froze the defendants' assets, preserved their books and records, and allowed CFTC staff access to their books and records. Following a hearing, the court revised its restraining order to lift the asset freeze and provide for reasonable and necessary living expenses. The court's revised order prevents defendants from diverting or secreting assets.
CFTC Alleges that the Defendants Committed Fraud in Soliciting Customers to Purchase a Foreign Currency Futures Trading System, Among Other Violations of Federal Commodity Law
In its complaint filed on September 29, 1999, the CFTC alleges that the defendants Fred Monte, Jeanne H. Monte, and Comp Tech violated the antifraud provisions of the Commodity Exchange Act (CEA) and CFTC regulations.
According to the complaint, the defendants solicited investors to purchase Comp Tech's trading system for foreign currency futures contracts by falsely stating in various advertisements that defendants earn $300 per day through currency trading and that prospective customers could earn $300 per day through currency trading. The complaint further alleges that, among other things, defendant Fred Monte falsely told investors that Comp Tech's trading system had been successful 83 percent of the time and that he had many years of experience as a broker or trader in the futures industry.
In its ongoing litigation against the defendants, the CFTC is seeking an order permanently enjoining defendants from violating the CEA and requiring an accounting, disgorgement of ill-gotten gains, and restitution to defrauded customers. In addition, the CFTC is seeking the imposition of civil penalties against the defendants not exceeding $110,000 per violation, or triple the monetary gain to defendants.
This is the fourth in a series of cases recently filed by the Commission alleging the fraudulent solicitation of customers to purchase commodity trading courses, newletters, or systems by commodity trading advisors (see CFTC News Release 4297-99, August 2, 1999, CFTC v. Pelton Street Publishing, Inc. and Roger Martin Hoy; Release 4320-99, October 1, 1999, CFTC v. Ca-Ni Industries, Ltd. and Nicholas J. Nickolaou; and Release 4327-99, October 21, 1999, CFTC v. David T. Marantette III, and Troubadour, Inc.).
# # #