For Release: February 13, 2007
California Court Orders Gilbert Philip Castillo, Jr. and Castle Enterprise Corporation to Pay More than $800,000 in Disgorgement and $480,000 in Civil Penalties for Fraud by an Unregistered Commodity Trading Advisor
Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today the entry of an order requiring defendants Gilbert Philip Castillo, Jr. and Castle Enterprise Corporation (Castle) of Walnut Creek, California, to disgorge $814,858.89 for restitution to victims and to pay a $480,000 civil monetary penalty, as a result of violating the anti-fraud provisions of the Commodity Exchange Act (CEA) and CFTC regulations.
The order also finds that Castillo and Castle violated the CEA and regulations as charged by the CFTC and permanently prohibits them from engaging in any business activities related to commodity futures.
The order, entered on February 5, 2007, by U.S. District Court Judge Thelton E. Henderson in the Northern District of California, resolves CFTC charges that the defendants fraudulently solicited members of the general public while acting as unregistered commodity trading advisors. (See CFTC complaint, CFTC v. Gilbert Philip Castillo, Jr., 3:06cv2540 N.D. Cal. and CFTC Press Release 5212-06, August 9, 2006.)
The complaint alleged that, from at least February 1, 1999, through mid-2005, the defendants doing business as WallStreetWar.com, CastilloResearch.com, and Never-Lose.com (collectively, the Wall Street War websites) operated Internet websites that made fraudulent representations to the general public regarding Castillo’s trading successes and the accuracy, profitability, and track record of their various commodity advisory services. During this time, Castle was purportedly acting as a Commodity Trading Advisor (CTA) without being registered with the Commission, as required.
The complaint alleged that these misrepresentations and practices fraudulently induced members of the public to purchase the Castillo and Castle’s commodity advisory services for managed account programs, trading systems, and training courses. These commodity advisory services involved, among other things, trading in the S&P 500 Index futures and options. The complaint further charged that the defendants received more than $800,000 in customer funds during the course of their alleged fraudulent scheme.
The following CFTC Division of Enforcement staff members are responsible for this case: David Reed, Timothy J. Mulreany, Mary Kaminski, Paul Hayeck, and Joan Manley.
Last Updated: September 19, 2008