For Release: January 9, 2007
U.S. Commodity Futures Trading Commission Obtains Permanent Injunction against Seattle, Washington Man Charged with Solicitation Fraud for the Second Time
Cameron Ownbey Permanently Enjoined from Engaging in Commodity Futures Trading, Ordered to Pay Over $600,000 in Restitution and a Civil Penalty
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today that Judge John A. Nordberg of the U.S. District Court for the Northern District of Illinois entered a consent order of permanent injunction against Seattle, Washington resident Cameron Ownbey that prohibits Ownbey from, among other things, trading futures for his own account or for others and applying for registration or exemption from registration with the CFTC.
In addition, the order requires Ownbey to pay $269,852 restitution to his customers and a civil monetary penalty of $345,000. (CFTC v. Cameron Ownbey d/b/a Ultimus and First National Investments, Civil Action No.03-C 6592.)
The order stems from a CFTC complaint filed on September 17, 2003 (see CFTC News Release 4843-03, September 24, 2003). The complaint alleged that between January 2001 and September 2003, while doing business as Ultimus and First National Investments in Chicago, Illinois, Ownbey fraudulently solicited customers to purchase his commodity trading services.
Specifically, the consent order finds that Ownbey solicited customers to purchase trading advice and signals for the S&P 500 and E-mini futures contracts for $5,500 for a year, while making false statements and/or material misstatements to clients and potential clients regarding 1) the profit potential of trading futures with his system, 2) his own past trading success for himself and his clients, and 3) his educational background. Misrepresentations included claims such as, “Wow you would have made over one million dollars in the last five years,” and, “Year after year, we have returns of 250% to 350%.” At least 31 of Ownbey’s customers lost money trading pursuant to Ownbey’s trading instructions.
The federal court judgment concludes a second enforcement action against Ownbey. On July 18, 2001, the CFTC instituted an administrative complaint alleging that from at least March 1998 through October 1999, Ownbey and his firm, Global Telecom, Inc., committed fraud by using misleading and fraudulent advertising to solicit customers to purchase trading recommendations that were generated by another commodity futures trading system (see In re Global Telecom, Inc., et al., CFTC Docket No. 01-18; CFTC News Release 4545-01, July 18, 2001). Ownbey lost an administrative hearing, and in an October 4, 2005 opinion and order issued on appeal, the CFTC ordered Ownbey to pay a civil monetary penalty of $220,000, revoked Ownbey’s registration, imposed a three-year trading ban, and issued a cease and desist order.
The following CFTC staff members are responsible for this case: Louis V. Traeger, William P. Janulis, Scott R. Williamson, Rosemary Hollinger, and Richard Wagner.
Last Updated: July 25, 2007