For Release:March 20, 1996



CFTC Charges the Respondents with Fraudulently Soliciting Customers in

Connection with the Sale of their Commodity Futures Trading System, and

Operating as Unregistered CTAs, Among other Charges

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on March 19, 1996, it filed a four-count administrative complaint against R&W Technical Services, Ltd., of Houston, Texas, a limited liability company that sells computerized commodity futures trading systems, and two individuals: Gregory M. Reagan, of Sugarland, Texas; and Marshall L. Worsham, of Houston. None of the defendants has ever been registered with the CFTC.

The complaint charges the respondents with committing fraud in connection with their solicitation of individuals to purchase futures trading systems, including the CurrencyMaster and the Master Suite systems. The basic CurrencyMaster trading system sold for $3,495, and the Master Suite trading system sells for approximately $13,500. Both systems are advertised to give trading signals in various financial futures contracts. The respondents are also charged with acting as commodity trading advisors (CTAs) without being registered with the CFTC, fraudulent advertising, and failure to produce required books and records, all violations of the Commodity Exchange Act and CFTC regulations.

According to the complaint, since at least April 1993, R&W has been soliciting customers to purchase its trading systems using a variety of misrepresentations and omissions of material fact in their advertisements and promotional materials. For example, the solicitations allegedly presented to potential investors include a track record of trading profits of $583,350 that purportedly resulted from the use of the Master Suite trading system for seven years. Solicitations also claimed, the complaint alleges, that the CurrencyMaster system generates 323 percent net profits trading just one contract at a time and consistently generated triple-digit profits, year in and year out, for six years from 1987 to 1992.

Contrary to respondents' representations regarding the success rate of their trading systems, the complaint alleges that the representations of profit were not based on any real trading by the respondents, that the respondents had not actually made the represented profits from the trading system, and that R&W has never had an account to trade commodity futures.

A public hearing is to be held to determine whether the allegations are true and, if so, what sanctions, if any, should be imposed. Possible CFTC sanctions include: civil penalties of up to $100,000 or triple the monetary gain against each respondent for each such violation; trading prohibitions; restitution to customers; and cease and desist orders.

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