For Release: May 4, 2006
Dallas, Texas Area Resident Roger Owen and His Two Companies Ordered to Pay $1.75 Million in Fraud Action Brought by U.S. Commodity Futures Trading Commission
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today that the United States District Court for the Middle District of North Carolina entered a permanent injunction order against Roger Owen (formerly of Greensboro, North Carolina, and currently residing in Trinidad, Texas); Longhorn Financial Advisors, LLC (Longhorn); and Phoenix Financial Group (Phoenix) (both of Greensboro, North Carolina) settling charges that the three defendants fraudulently solicited customers to purchase a computerized commodity trading system.
The order stems from a CFTC complaint filed on October 5, 2004 (see CFTC News Release 5023-04), charging that, from at least January 2002 through November 2003, Owen, Longhorn, and Phoenix made oral and written misrepresentations to customers and potential customers regarding the profitability of the computerized trading system, even while their customers were sustaining trading losses exceeding $300,000.
Specifically, the order finds that -- in addition to oral misrepresentations touting profitable trading and guaranteeing against loss -- Owen and Longhorn distributed a promotional pamphlet falsely claiming that customers averaged a profit of $6,500 per month on a $30,000 investment and showing bogus trading profits of 134 percent in 2000, 66 percent in 2001, and 40 percent in 2002. The Longhorn website also fraudulently claimed that a customer could earn more than a 300 percent profit in three years, according to the order.
The court ordered Owen, Longhorn, and Phoenix to pay $308,400 in restitution to defrauded customers. In addition, the order imposes on each of the three a $480,000 civil monetary penalty, permanent trading and registration bans, and a permanent injunction prohibiting them from engaging in commodity solicitation fraud.
Court Also Sanctions Nashville Resident Daniel Belbeck
The court also entered a consent order of permanent injunction against Daniel Belbeck of Nashville, Tennessee, finding that Belbeck helped Owen and Longhorn distribute the fraudulent promotional pamphlet to potential customers in Tennessee, without being appropriately registered with the CFTC. As a result, the order requires Belbeck to pay $26,000 in restitution to defrauded customers and a civil penalty of $10,000. The order also enjoins Belbeck from acting as an associated person without being registered with the CFTC and imposes a permanent trading and registration ban.
The following CFTC Division of Enforcement staff members are responsible for this case: Frank Rangoussis, Jeff Le Riche, Jan Folena, and Richard Glaser.
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The CFTC encourages members of the public to bring to our attention any suspicious activities involving futures or commodity options, including matters involving foreign currency (forex) investments or suspicious Internet websites.
In addition, the CFTC publishes a series of Consumer Advisories alerting the public to warning signs of possible fraudulent activity and offering precautions individuals should take before committing funds.
Last Updated: December 26, 2017