Release Number 6049-11

June 7, 2011

CFTC Charges Neal E. Hall of North Carolina with Registration and Disclosure Violations

Hall conducts business via his trading system website.

Washington, DC -- The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of a complaint against Neal E. Hall, of Reidsville, N.C., charging him with failure to register as a commodity trading advisor (CTA) and failure to include required cautionary statements on his trading system’s website, Hall has never been registered with the CFTC in any capacity.

The CFTC civil complaint, filed in the U.S. District Court for the Middle District of North Carolina, alleges that Hall violated Section 4m(1) of the Commodity Exchange Act by failing to register as a CTA. The complaint alleges that, beginning no later than June 2010 and continuing to the present, Hall used the mails and other avenues of interstate commerce while offering services as a CTA in exchange for payment in the form of either flat charges or a percentage of profits from customers. Hall used his website to solicit clients both to subscribe to his e-mini S&P 500 futures trading program and to have him manage their trading accounts, according to the complaint.

Additionally, the complaint alleges that Hall is violating CFTC regulations 4.41(a)(3) and 4.41(b). These regulations require cautionary statements to accompany the use of client testimonials and the presentation of the performance of a simulated or hypothetical commodities account. Regulation 4.41(b) further dictates that the cautionary statement accompanying the presentation of the performance of simulated or hypothetical trading results contain specific language and be prominently displayed in immediate proximity to the hypothetical results.

According to the complaint, Hall is in violation of regulation 4.41(a)(3) because his website lacks a cautionary statement despite featuring testimonials from unnamed clients. Similarly, the complaint alleges that Hall is in violation of regulation 4.41(b) because his website does not contain a disclaimer with the specific language required by the regulation that is prominently displayed in immediate proximity to the hypothetical trading results.

In its continuing litigation, the CFTC seeks restitution, disgorgement of ill-gotten gains, a civil monetary penalty and a permanent injunction against further violations of the federal commodities laws.

CFTC Division of Enforcement staff responsible for this case are Gregory Scopino, Timothy J. Mulreany, Michael Amakor, Paul Hayeck and Joan Manley.

Media Contact
Dennis Holden

Last Updated: June 7, 2011