For Release: July 25, 2006
Federal District Court Orders North Carolina Resident John Poole to Pay Civil Monetary Penalty for Fraudulently Promoting Commodity Trading System
Court Finds that He Made False Representations on his Website: www.optionstoriches.com
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today that the Honorable William L. Osteen, United States District Court Judge for the Middle District of North Carolina, issued an Order for Entry of Default Judgment, Permanent Injunction and Ancillary Equitable Relief against defendant John Poole a/k/a James Drew, a resident of Pfafftown, North Carolina.
The court’s order prohibits Poole from engaging in any business activities related to commodity futures and options trading and requires him to pay a civil monetary penalty of $240,000.
The order resolves charges against Poole arising from the CFTC's complaint in CFTC v. John Poole a/k/a James Drew, individually and d/b/a Mac Systems, Case No. 1:05CV00859 (M.D.N.C.) (see CFTC Press Release 5130-05, October 18, 2005).
Specifically, the order finds that, beginning in or about April 2003, Poole, operating as Mac Systems, fraudulently promoted a commodity trading system through his Internet website www.optionstoriches.com, in violation of the Commodity Exchange Act. The website, the order finds, included false claims that the trading system would yield huge profits and enable clients to predict accurately market movements in any commodity market. The order states that, among other things, Poole's website claimed to show investors how to "make a ton of cash" "using a proven and GUARANTEED system" (emphases in original).
Poole, through the website, also claimed that the system was easy to use and accurately predicted which way commodity options prices would move in the future, according to the order. The order finds, however, that these claims were false, as Poole was unaware of any client who used the trading system offered on the website to make a profit or to predict accurately the movement of any commodity options market. Finally, the order notes that the website posted fictitious client testimonials attesting to the success purported clients had achieved using the trading system.
The following CFTC Division of Enforcement staff members are responsible for this case: Charles D. Marvine and Richard Glaser.
Last Updated: April 8, 2007