Release: #4586-01
For Release: November 20, 2001
Commodity Trading Advisor Settles Government Fraud
Charges
CFTC Orders Nicholas J. Nickolaou to Pay Restitution
and Penalties For Fraudulently Soliciting the Public to Buy His
“Wisdom of the Ages” Trading System
Washington D.C. – The Commodity Futures Trading Commission
(CFTC) announced today the settlement of an action filed on September 30,
1999, against Nicholas J. Nickolaou and Ca-Ni Industries,
Ltd. (Ca-Ni). The CFTC complaint, filed in federal district court for
the Northern District of Illinois, alleged that Nickolaou, formerly of
Lemont, Illinois, and currently residing in Deltona, Florida, engaged in
fraud by soliciting the public to buy his computer-aided trading system
“Wisdom of the Ages” (WOTA) (see CFTC News Release 4320-99, October 1, 1999).
The consent order, entered by the court on November 20, 2001, finds that
from at least 1995 to the present, Nickolaou acted as a commodity trading
advisor and solicited the public to purchase or lease his WOTA trading
system. According to the order, his solicitations included advertisements
in various futures industry publications including Futures
Magazine and Technical Analysis of Stocks and Commodities
Magazine. The consent order further finds that, in conversations with
existing and potential customers, and in his promotional materials and
advertisements, Nickolaou misrepresented: (a) WOTA’s track record
and the nature of its trading performance; (b) his use of WOTA in active
trading; (c) the number and satisfaction of WOTA users; and (d) his
trading experience.
Among other sanctions, the consent order:
● directs Nickolaou to pay restitution totaling $265,105.15 to
customers, pursuant to a payment plan, with an initial cash payment of
$15,445, and a contingent civil monetary penalty in the amount of
$110,000;
● permanently prohibits Nickolaou and Ca-Ni from committing further
violations of the Commodity Exchange Act and CFTC regulations; and
● requires Nickolaou and Ca-Ni to comply with certain undertakings,
including (1) to not trade on or subject to the rules of any registered
futures exchange; (2) to not control or direct any commodity trading
account for or on behalf of any person or entity; and (3) to not apply
for registration with the CFTC or act as a principal, agent or employee
of a CFTC registrant.
In consenting to the entry of the consent order, Nickolaou neither
admitted nor denied the allegations in the complaint or findings in the
order.
To see a copy of the settlement order, go to the following Internet web
address: http://www.cftc.gov/
Media Case Contact:
Elizabeth Streit
CFTC Central Regional Office
Division of Enforcement
(312) 353-2200
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