For Release: April 9, 2008
U.S. District Court Orders George Heffernan, a/k/a George W. Marshall, to Pay $650,000 in Sanctions in Federal CFTC Action Involving Fraudulent Commodity Trading Advice and Services
Washington, DC—The U.S. Commodity Futures Trading Commission (CFTC) announced George Heffernan, a/k/a/ George W. Marshall, will pay $650,000 in sanctions, based on an order that settles a commodity fraud action against him. Heffernan, formerly a resident of Evans, Georgia, currently resides in Myrtle Beach, South Carolina.
The permanent injunction order, entered by the Honorable Terry L. Wooten, U.S. District Court of the South Carolina Florence Division, resolves an action filed by the CFTC in December 2004 (see CFTC Press 5038-05). That action charged Heffernan with fraud in soliciting participants for a commodity pool and clients for commodity trading advisory services, among other charges.
The court’s order requires Heffernan to pay a $230,000 civil monetary penalty and disgorge $230,000 of ill-gotten gains received through the sale of a commodity trading service. The order also requires Heffernan to pay $190,000 in restitution, which has been satisfied by the distribution of funds frozen by a statutory restraining order issued by the court in response to CFTC’s December 2004 complaint.
In ruling for the CFTC, the court found that Heffernan, in July 2004, founded a commodity pool under the name Index Analysis Pool, L.P. and solicited clients by making false representations regarding the profitability of the pool. At the same time, Heffernan acted as a commodity trading advisor offering trading methods, advice, and services for compensation under various names.
Heffernan marketed this service as Index Analysis Service via the Internet at www.indexanalysisservice.com. Via the website, he sold a daily electronic mail subscription providing trading advice for S&P 500 and Nasdaq futures contracts, as well as two commodity futures trading methods, marketed as: The Index Analysis No Loss – Hedge Trading Method and The Index Analysis Stop Loss – Hedge Trading Method. Heffernan offered these two trading methods for sale for $25,000 and $5,000, respectively, and made fraudulent representations regarding their profitability, according to the order.
Heffernan’s Misconduct Violated a Prior CFTC Order Against Him Based on Similar Misconduct
The court also found that Heffernan violated a prior order of the CFTC. These violations follow a long history of illegal conduct by Heffernan. In two separate proceedings prior to the filing of the current complaint, the CFTC and the U.S. District Court for the Southern District of Georgia each found that Heffernan violated the Commodity Exchange Act and CFTC regulations by, among other things, employing a fraudulent scheme designed to defraud his clients and prospective clients (see CFTC Press Releases 4442-00, September 7, 2000, and 4830-03, August 7, 2003).
The CFTC gratefully acknowledges the assistance of Robert F. Daley, Jr., and the Office of the United States Attorney in Columbia, South Carolina.
The following CFTC Division of Enforcement staff are responsible for this case: Paul Hayeck, Patricia Gomersall, and Joan Manley.
Last Updated: April 9, 2008