CFTC News Release: 4350-99 (CFTC Docket No.00-03)

For Release: December 20, 1999

CFTC FILES ADMINISTRATIVE COMPLAINT AGAINST CARL DEAN DIXON, CHARGING THAT HE COMMITTED COMMODITY FRAUD AND FAILED TO REGISTER AS A COMMODITY TRADING ADVISOR

CFTC Alleges that Dixon Made Misrepresentations and Deceptive Statements and Provided False Reports in Connection With His Fraudulent Solicitation of, and Advice to, Students of His Futures Trading Course

WASHINGTON The Commodity Futures Trading Commission (CFTC) announced today that on December 16, 1999, it filed a three-count anti-fraud administrative complaint against Carl Dean Dixon, last known to reside in Davie, Florida.

The complaint alleges that Dixon committed fraud by means of misrepresentations and deceptive statements made to prospective and actual futures trading students concerning, among other things, his experience and success as a futures trader, and by creating false reports purporting to show his profitable trading in violation of the anti-fraud provisions of the Commodity Exchange Act (CEA). The complaint also alleges that Dixon violated the CEA's registration provisions by failing to register as a commodity trading advisor (CTA) while acting in that capacity.

Specifically, the complaint alleges that between at least January and December 1998, Dixon offered a Treasury bond futures trading course to the public, promising to teach a trading methodology that would yield high returns over a short period, and offering a double-money-back guarantee if students did not earn at least a certain weekly sum after using the methodology for a few weeks. Dixon, however, failed to teach such a system or return the students' tuition, the complaint alleges.

Dixon also allegedly solicited students by making material misrepresentations that he was an experienced and successful futures trader whose successes resulted in an opulent lifestyle. Dixon, however, was neither experienced nor successful as a commodity trader and was verging on bankruptcy, according to the complaint.

Dixon also solicited two students using sham account statements reflecting phony trading profits to reinforce his assertions that he was a profitable, high-volume trader for his own account, the complaint alleges. Furthermore, it is alleged that Dixon solicited students by claiming to have taught students to become successful traders using his trading methods, when in fact he had rarely, if ever, taught students to trade successfully.

The complaint alleges that Dixon's solicitations were false, deceptive and misleading because they misstated and failed to disclose facts material to the students' decisions to sign up for his tutoring, all in violation of sections 4b and 4o of the CEA. The complaint also alleges that Dixon also failed to register as a commodity trading advisor in violation of section 4m(1) of the CEA.

A public hearing has been ordered to determine whether the allegations are true, and, if so, what sanctions are appropriate in the public interest.

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