February 1, 2013
Federal Court Imposes over $2.8 Million in Sanctions against Florida Resident Martin H. Bedick and His Company, Angus Jackson, Inc., for Making False Statements
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that the Honorable James I. Cohn of the U.S. District Court for the Southern District of Florida issued an order requiring defendants Martin H. Bedick, of Boca Raton, Fla., and his company, Angus Jackson, Inc., of Fort Lauderdale, Fla., to pay a civil monetary penalty of more than $1.9 million and to disgorge $955,000 in ill-gotten gains as a result of making false statements to the National Futures Association (NFA) in violation of Section 9(a)(4) of the Commodity Exchange Act (CEA) (see CFTC Press Release 6203-12, March 12, 2012). In addition, the court enjoined defendants from violating the CEA, as charged, and from engaging in any activities relating to commodity trading.
The court’s order finds that, in the course of two separate NFA audits, Bedick, while acting on behalf of Angus Jackson, willfully concealed material facts from, and made false statements to, the NFA about a business relationship that Angus Jackson maintained with Martin B. Rosenthal. As outlined in the CFTC’s March 12, 2012, complaint, Rosenthal acted as an unregistered commodity trading advisor and received compensation from Angus Jackson, which was paid to Rosenthal or to Rosenthal’s company, Jarma Trading, Inc., under the guise that the payments were made for developing and providing trading systems, software, and computer services. Rosenthal previously entered into a consent permanent injunction, entered by Judge Cohn on September 27, 2012 (see CFTC Press Release 6373-12, September 28, 2012). This consent order requires, among other things, Rosenthal to pay disgorgement and a civil monetary penalty totaling approximately $1.2 million.
The CFTC thanks the NFA for its cooperation and assistance in this matter.
CFTC Division of Enforcement staff members responsible for this case are Brian M. Walsh, Elizabeth L. Davis, Kenneth McCracken, Girum Tesfaye, Rick Glaser, and Richard Wagner.
Last Updated: February 1, 2013