For Release: September 26, 2006
U.S. Commodity Futures Trading Commission Revokes the Registration of Chase Commodities Corporation
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today that it has accepted an offer of settlement from Chase Commodities Corporation (Chase) of Woodland Hills, California, on September 13, 2006, and issued an order revoking Chase’s registration as an Introducing Broker.
The justification for the registration revocation, according to the order, is the entry by Chase into a consent order of permanent injunction entered on January 25, 2006, in a California Federal District Court that finds that Chase engaged in sales solicitation fraud in violation of the Commodity Exchange Act and CFTC regulations (see CFTC Press Release 5158-06, February 10, 2006). The consent order, in addition to ordering the permanent injunction against Chase and one trader and a five-year injunction against another trader, ordered defendants to pay $4.2 million in restitution to defrauded customers and ordered separate $120,000 civil monetary penalties against the traders.
The consent order stemmed from a CFTC complaint filed on August 4, 2004, that charged Chase and two traders with fraudulently soliciting customers by exaggerating the profitability of trading options on futures, among other things (see CFTC Press Release 4973-04, August 17, 2004).
The following CFTC Division of Enforcement staff members are responsible for this case: Richard Glaser, Kenneth McCracken, and Jo Mettenburg.
Last Updated: April 22, 2010