UNITED STATES OF AMERICA
Before the
COMMODITY FUTURES TRADING COMMISSION

The Commodity Futures Trading Commission ("Commission" or "CFTC") has received evidence from its staff which tends to show, and the Commission's Division of Enforcement ("Division") alleges that:

I.

SUMMARY

1. As more fully set forth below, CTS Financial Publishing, Inc., formerly Commodity Trend Service, Inc. ("CTS"), Dearborn Financial Publishing, Inc. ("Dearborn"), Dennis Blitz ("Blitz"), and Nick Van Nice ("Van Nice") (collectively, the "Respondents") have engaged in acts and practices which constitute violations of Sections 4b(a)(i) and (iii), 4c(b), and 4o(1) of the Commodity Exchange Act, as amended ("Act"), 7 U.S.C. �� 6b(a) (i) and (iii), 6c(b), 6o(1) (1994), and Sections 4.41(a) and (b) and 33.10 of the Commission's Regulations ("Regulations"), 17 C.F.R. �� 4.41(a) and (b), 33.10 (2000).

2. From at least 1994 through 1996, in the marketing of its products relating to the trading of commodity futures and option contracts, CTS sent to the public fraudulent advertisements in magazine and brochure format and placed fraudulent advertisements in Investor's Business Daily. Specifically, those advertisements solicited individuals to purchase the following CTS products: Futures Charts, The Million Dollar No-Risk Trading Course,Futures Options Weekly, and The Million Dollar Trading Adventure.

3. Throughout each of the advertisements, the following message is conveyed repeatedly: through the purchase and use of CTS products, significant profits will be easily and immediately realized, and the risk of loss is virtually eliminated or significantly minimized.

4. More specifically, through direct-mail advertising and other advertisements, Respondents: (a) misrepresented the potential for profit through commodity futures and options trading, which misrepresentations were accompanied with little or no risk disclosure; (b) omitted to disclose that the seasonal tendencies of underlying commodities are typically already factored into the respective commodity option prices; (c)�used testimonials related to one product to promote other products; (d)�falsely represented that CTS and Dearborn personnel featured in CTS advertisements were actively and successfully trading, including but not limited to, failing to disclose Van Nice's losing trading record; (e)�repeatedly presented profit examples without disclosing that those examples were hypothetical; and (f)�omitted to disclose that selling commodity options could involve unlimited risk. As a result, Respondents violated the antifraud provisions of the Act and the Commission's Regulations.

5. For some period in 2000, CTS's operated and maintained an Internet site which promoted a product called SwingTrader. Subscribers could use SwingTrader to trade commodity futures and option contracts. Swing Trader falsely presented hypothetical trading results as actual, and failed to provide a hypothetical disclosure that conformed to Regulation 4.41(b), 17 C.F.R. � 4.41(b) (2000). Moreover, CTS's disclaimer was not prominently displayed, as required by Regulation 4.41(b)(2), 17 C.F.R. � 4.41(b)(2) (2000).

II.

RESPONDENTS

6. Respondent CTS is a Florida corporation with offices at 1201 US Highway 1, Suite 350, North Palm Beach, Florida 33408. Dearborn owned CTS from 1991 through 1998. At all times relevant, CTS transacted business nationally as a commodity trading advisor ("CTA"). At all times relevant, CTS was a subsidiary of Dearborn. CTS has never been registered with the Commission in any capacity.

7. Respondent Dearborn is an Illinois corporation located at 155 N. Wacker Dr., Chicago, IL 60606. Dearborn has never been registered with the Commission in any capacity.

8. Respondent Blitz was, from 1991 through 1998, a vice president of Dearborn and the president of CTS. During that period, Blitz was responsible for all operations of CTS. From 1998 to the present, he has been the president of Dearborn and chairman of CTS's board of directors. Blitz resides at 1000 North Lake Shore Plaza, Apt. 36-C, Chicago, IL 60611. Blitz has never been registered with the Commission in any capacity.

9. Respondent Van Nice was an editor at CTS from 1991 through 1995. From 1992 through the present, he has served as CTS's technical analyst for futures products. In January 1996, he became the business manager of CTS and, from that time forward, ran CTS on a daily basis. Van Nice resides at 6054 Hollywood St., Jupiter, FL 33458. In 1990 and 1991, Van Nice was registered as an associated person of a CTA and commodity pool operator.

III.

FACTUAL BACKGROUND

A. CTS's Product Advertisements

10. The acts and practices of the Respondents detailed below occurred from at least 1994 through 1996 (the "time period"), during which time period CTS acted as a CTA.

11. During the time period, CTS, while acting as a CTA, though mass, direct-mail marketing sent to members of the public advertising materials soliciting their purchase of various CTS commodity trading advisory publications and commodity futures trading courses. Those advertising materials were in a lengthy, full-color magazine format or in a lengthy brochure format. During the relevant period, CTS published and distributed to the public the following direct-mail advertisements:

• Futures Traders' Profit Guide, an advertisement in magazine format which promoted the purchase of a product called Futures Charts;
• New Wealth, an advertisement in magazine format which promoted the purchase of The Million Dollar No-Risk Trading Course;
• Futures Traders Special "Options" Issue, an advertisement in magazine format which promoted the purchase of a product called Futures Options Weekly; and
• The Million Dollar Trading Adventure, an advertisement brochure which promoted the purchase of a commodity futures trading course.

These CTS products and commodity futures trading courses were also offered for sale to the public though advertisements placed by CTS in Investor's Business Daily, a business-oriented newspaper of general circulation published on weekdays, and contained statements and representations similar and/or identical to those contained in CTS's direct-mail advertisements.

12. Blitz and Van Nice caused to be created and/or gave final approval to all the CTS direct-mail and Investor's Business Daily advertisements.

13. During the time period, CTS caused a total of approximately 1.4 million mailings of Futures Traders' Profit Guide, New Wealth, Futures Traders Special "Options" Issue, and The Million Dollar Trading Adventure to be sent to members of the public, and caused advertisements for its products to be placed in Investor's Business Daily. As a result of those mailings and advertisements, CTS received at least 9,800 orders for the purchase of Futures Charts, The Million Dollar No-Risk Trading Course, Futures Options Weekly, or The Million Dollar Trading Adventure.

14. For some period in January 2000, CTS's operated and maintained an Internet site, which promoted a product called SwingTrader. Subscribers could use SwingTrader to trade commodity futures and option contracts. Swing Trader falsely presented hypothetical trading results as actual, and failed to provide a hypothetical disclosure that conformed to Regulation 4.41(b), 17 C.F.R. � 4.41(b) (2000).

15. During that period, Van Nice exercised final review of all of CTS's advertisements, including the Swing Trader, and therefore knowingly induced CTS's violations relating to the Swing Trader. During that period, Blitz failed to put or have in place any system of internal control to detect and prevent violations of the Act and the Regulations. He, therefore, did not act in good faith and is liable for CTS's violations relating to the Swing Trader.

B. Fraudulent Representations¹

16. Futures Traders' Profit Guide, New Wealth, and Futures Traders Special "Options" Issue all have the same basic format. They each have a core text in narrative form ("core text(s)") that is interspersed with numerous independent, boldface profit potential statements that in many instances are in a font size considerably larger than the size of the text font. They also each have interspersed throughout boxed texts, sidebars, and graphs that are related to but contain commentary separate from the core text. Like the core texts, the boxed texts, sidebars and graphs have numerous boldface profit statements in a large font size.

17. These boldface profit statements are used to fraudulently and repeatedly convey the following message to prospective purchasers: through the purchase and use of CTS products, significant profits will be easily and immediately realized, and the risk of loss is virtually eliminated or significantly minimized.

18. The following are examples of the boldface profit potential statements used to convey that message:

• Make a fortune trading futures with amazing profits like 224%, 350%, even 500% or more. ( Futures Traders' Profit Guide)
• Here's the amazing story of how average people are making profits like $4,500...$10,177...$16,000...and even $124,576 in just months, not years. (New Wealth)
• You too can make big, fast profits just like these by enrolling in "The Million Dollar No-Risk Trading Course." (New Wealth)
• 10 Reasons Why You Can Easily Double, Triple, Even Quadruple Your Income With This Remarkable Course (New Wealth)
• An 80% Chance of Tripling Your Money! (Futures Traders Special "Options" Issue)
• "A 200% return in 3 days. Not bad, huh?" (Futures Traders Special "Options" Issue)
• Introducing a Brand New Service That Will Lead You to the Biggest, Safest Options Profits: Futures Options Weekly (Futures Traders Special "Options" Issue)

19. The core texts of Futures Traders' Profit Guide, New Wealth, and Futures Traders Special "Options" Issue also make numerous misrepresentations regarding the potential profitability and the risk of loss through the use of CTS products in commodity futures and options trading. Those core texts also repeatedly convey to prospective purchasers the false and misleading message that through the purchase and use of CTS products, significant profits will be easily and immediately realized, and the risk of loss is virtually eliminated or significantly minimized. For example:

• It's not uncommon for my subscribers to double, triple or even quadruple their money in a short period of time. (Futures Traders' Profit Guide)
• But Futures Charts will show you--step-by-step--how to simplify even the most complex markets--and discover super profit opportunities. In fact, with our hard work--and your trading savvy--its well within reason that you too can quit your job and make thousands of dollars a year trading the futures markets. (Futures Traders' Profit Guide)
• When it comes to making truly BIG profits in futures...profits of 50%...100% ...500% or more, you can't afford to depend on mediocre, outdated charts. [...] Why not try out Futures Charts and take the first step to making tens or even hundreds of thousands of dollars a year. (Futures Traders' Profit Guide)
• You can make big money using proven techniques that have worked for decades.
• It's the quickest way to build a fortune. If tens of thousands of people have made big money trading futures, you can do the same! Just enroll in "The Million Dollar No-Risk Trading Course" and see how you can do it, too! (New Wealth)
• You'll discover how to turn these rules into big profits by enrolling in "The Million Dollar No-Risk Trading Course". (New Wealth)
• For a small tuition fee, and as little as $5,000 to invest, you can begin trading futures. When you can make 5, 10, even 20 times your money with very little work, it's no wonder that so many people look at futures trading as a super business you can launch on a small budget. (New Wealth)
• Start investing and enjoying the profits! You can make $1,000...$5,000...even $10,000 or more a month! Just think what you could do with that kind of money!
• As you can see, this is the most important course you'll ever take on making big money, fast. Enroll today! (New Wealth)
• That's because "The Million Dollar No-Risk Trading Course" is the most complete, easy-to-learn, interactive home study course ever developed. It's the safest, surest way for you to discover the short-cut to big profits: trading futures. (New Wealth)
• Now, you can take the first, easy step to dramatically increase your monthly income. Just enroll in "The Million Dollar No-Risk Trading Course" today. (New Wealth)
• It's a secret I believe will be perfect for you, since it can create big money for you in a short period of time. And best of all, it's very simple! (Futures Traders Special "Options" Issue)
• But first, if you think I'm exaggerating about the type of profits you can make, here are just a few examples of the kind of explosive profits possible using this same secret. All while limiting your risk to the exact penny. (Futures Traders Special "Options" Issue)
• By trying out Futures Options Weekly, you'll gain amazing control over your options trading. How does [sic] steady profits with less risk than you ever dreamed imaginable sound? That's right, you could make 2 to 1, 3 to 1, even 5 to 1 profits, all with small and controlled risk. (Futures Traders Special "Options" Issue)

20. The brochure for The Million Dollar Trading Adventure also contains numerous misrepresentations regarding the profit potential and risk of loss from purchasing the advertised trading course. The brochure for this product conveys to prospective purchasers, in specific representations and in its overall theme, the false and misleading message that through the purchase and use of the trading course, significant profits will be easily and immediately realized, and the risk of loss is virtually eliminated or significantly minimized. For example:

• The futures market is one of the only places left in America where you can take a small amount of money and make a literal fortune. This Million Dollar Trading Adventure with The 7 Keys To Success will give you the opportunity to do just that.
• This is the ideal home based business except that you don't have to have employees, customers, clients, inventory, marketing skills or expenses, or high overhead, and there is very little start up capital required to begin making your fortune.
• You've got the answer to all your financial dreams in your hands right now. Opportunity is knocking, it's time to answer the door right now. This is your wake-up call. You've simply got to pick up the phone right now, your future depends on it. Make the call that will change the course of your destiny. Get the riches you dream of. Get the freedom you desire. Retire with the security your family deserves. It all starts with one phone call, but you have to make it right now while you're thinking about it. If you wait until later it's another thing you might put off an never do. If you don't do this for your family, then it won't get done. They're counting on you, don't let them down!

21. Many of the boldface and core text statements set forth above were used, in abbreviated form, in advertisements for Futures Charts, The Million Dollar No-Risk Trading Course, Futures Options Weekly, and The Million Dollar Trading Adventure placed by CTS in Investor's Business Daily.

22. The risk statements in all of the advertisements are few and in many instances in a font size smaller than the rest of the text. The ratio of profit potential statements to risk statements in all of CTS's advertisements is significantly disproportionate in favor of profit statements. As a result, they do not fairly and adequately present the possibility of loss in connection with trading commodity futures or option contracts, and, taken as a whole, do not contain a meaningful discussion or disclosure of the risks involved in trading commodity futures or option contracts.

23. On CTS's Internet site, the text at the top of the main page promoting the SwingTrader reads:

24. Further down, CTS states that it has realized "100% winners and $1,826 in profits with only a $2,400 margin requirement."

25. CTS's Internet site provided the following disclaimer in very fine print at the bottom of the SwingTrader page:

NO REPRESENTATION IS BEING MADE THAT EVERY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS SIMILAR TO THOSE SHOWN, OR IN ANY AMOUNT. THE EXPERIENCE OF THE SUBSCRIBERS QUOTED HEREIN MAY HAVE LIMITED APPLICABILITY TO THE EXPERIENCE OF THE AVERAGE SUBSCRIBER. SOME OF THE EXAMPLES PROVIDED ARE SIMULATED OR HYPOTHETICAL, WHICH MEANS THEY ARE DONE ON PAPER BASED ON MARKET PRICES BUT WITHOUT ACTUAL MONEY BEING INVESTED. RESULTS MAY NOT REFLECT ACTUAL RESULTS. IN AN ACTUAL TRADING ENVIRONMENT THERE IS RISK OF LOSS AND PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

26. Since the disclaimer does not disclose which profit claims are based on hypothetical results and which ones are based on actual results, the reader has no way of knowing that the results for Live Cattle, Bean Meal, Feeder Cattle, or Sugar are hypothetical.

27. As a result, the Internet site promoting Swing Trader falsely presented hypothetical trading results as actual, and failed to provide a hypothetical disclosure that conformed to Regulation 4.41(b), 17 C.F.R. � 4.41(b) (2000). Moreover, CTS's disclaimer was not prominently displayed, as required by Regulation 4.41(b)(2), 17 C.F.R. � 4.41(b)(2) (2000).

28. The core texts of both Futures Traders Special "Options" Issue and New Wealth are in the first person. In Futures Traders Special "Options" Issue the narrator is Van Nice. In New Wealth, the narrator is Tom Triggs ("Triggs"), who at the time of New Wealth's initial publication, was employed at Dearborn and associated with CTS.

29. The core texts of both of Futures Traders Special "Options" Issue and New Wealth fraudulently represent that both Van Nice and Triggs were professional traders and had done a considerable amount of actual trading in commodity futures or option contracts. In fact, neither Van Nice nor Triggs engaged in any significant commodity futures or option trading, and what trading either of them did was minimal and for their own accounts.

30. Van Nice once traded an account in the mid-1990s, but the account was under $10,000, and he sustained aggregate net losses.

31. Although Futures Traders Special "Options" Issue contains numerous representations as to Van Nice's trading, it does not disclose the limited nature of his trading and the fact that he sustained aggregate net losses trading commodity futures or option contracts for his own account.

32. The following are examples of statements in Futures Traders Special "Options" Issue that falsely represent that Van Nice was an experienced, professional commodity option trader and that he used Futures Options Weekly to trade commodity options:

• Now you can see why options are a favorite trading strategy of professional traders like me...
• I must admit when I first heard about this trading secret, I was skeptical. Then I tried it out and couldn't believe how good it actually is.
• To help you catch the biggest profits, I've developed a powerful call/put indicator that can pinpoint major market tops and bottoms. For example, this uncannily accurate signal flashed a buy signal in stocks and bonds back in the December 1994 lows, leading us to some fantastic profits.
• These dynamite monthly charts give you the historical price ranges for all your favorite markets going back over 20 years. [...] Nick Van Nice uses these same charts, and you can too!
• [Y]ou could have purchased 5,000 bushels of soybeans with an initial investment of just $475. This $475 actually controlled over $30,000 worth of soybeans. But I only risked $475 because of the incredible leverage options offer.
• How do I capture big, quick profits trading options? . . . . I first quantify the three phases of a trend.
• Once you begin trading options using this amazing secret, I know you'll get hooked like I am. It's fun, exciting, and very profitable. (emphasis in origional)

• Tom Triggs -- 32 year trading veteran, former Vice President, Chicago Board of Trade. (This statement appears three times in boldface type.)
• I can tell you for a fact, the profits in futures trading are as good--or even better--than they've ever been.
• The futures markets have been very good to me. Sharing these secrets won't affect my trading or the integrity of the profitable trading strategies of my friends and associates.
• I typically use 4-day, 9-day and 18-day moving averages to seek out big profit trends.
• Particularly, I like to follow the buying and selling of the commercial traders. These are the large hedgers, the strong hands behind the market who are very well-financed and who deal with the physical commodity.

56. From at least October 1, 1995 through at least November 1, 1996 and for some period in 2000, CTS, Van Nice and Blitz violated Section 4o(1) of the Act, 7 U.S.C. � 6o(1) (1994), and Regulation 4.41(a) and (b), 17 C.F.R. � 4.41(a) and (b) (2000),2 in that they directly or indirectly employed a device, scheme or artifice to defraud clients or prospective clients, or engaged in transactions, practices or a course of business which operated as a fraud or deceit upon clients or prospective, by, including but not limited to, making the misrepresentations and omissions set forth in paragraphs 1 through 47 above, and that they directly or indirectly failed to identify trades as hypothetical.

57. Each fraudulent representation and omission is alleged as a separate and distinct violation of Section 4o(1) of the Act, 7 U.S.C. � 6o(1) (1994), and Regulation 4.41(a) and (b), 17 C.F.R. � 4.41(a) and (b) (2000).

58. Blitz and Van Nice willfully aided, abetted, counseled, commanded, induced, procured, caused, or acted in combination or concert with CTS and each other in the foregoing violations of Section 4o(1) of the Act, 7 U.S.C. � 6o(1)(1994), and Regulation 4.41(a) and (b), 17 C.F.R. � 4.41(a) and (b) (2000). Blitz and Van Nice are therefore responsible for CTS's and each others' violations of Section 4o(1) of the Act, 7 U.S.C. � 6o(1) (1994), and Regulation 4.41(a) and (b), 17 C.F.R. � 4.41 (2000), pursuant to Section 13(a) of the Act, 7 U.S.C. � 13c(a) (1994).

59. Blitz and Van Nice directly or indirectly controlled CTS, and did not act in good faith or knowingly induced, directly or indirectly, the violations described above, and, pursuant to Section 13(b) of the Act, 7 U.S.C. � 13c(b) (1994), are each liable for CTS's violations of Section 4o(1) of the Act, 7 U.S.C. � 6o(1) (1994), and Regulation 4.41(a) and (b), 17 C.F.R. � 4.41(a) and (b) (2000).

60. Pursuant to Section 2(a)(1)(A)(iii) of the Act, 7 U.S.C. � 4 (1994), and Regulation 1.2, 17 C.F.R. � 1.2 (2000), CTS is liable for any violations of Section 4o(1) of the Act, 7 U.S.C. � 6o(1) (1994), and Regulation 4.41(a) and (b), 17 C.F.R. � 4.41(a) and (b) (2000), by its officers, directors, managers, employees and agents, in that all such violations were within the scope of each person's office, employment or agency with CTS.

61. Pursuant to Section 2(a)(1)(A)(iii) of the Act, 7 U.S.C. � 4 (1994), and Regulation 1.2, 17 C.F.R. � 1.2 (2000), Dearborn is liable for any violations of Section 4o(1) of the Act, 7 U.S.C. � 6o(1) (1994), and Regulation 4.41(a) and (b), 17 C.F.R. � 4.41(a) and (b) (2000), by its officers, directors, managers, employees and agents from at least October 1, 1995 through at least November 1, 1996, in that all such violations were within the scope of each person's office, employment or agency with Dearborn.

COUNT III

VIOLATIONS OF SECTION 4c(b) OF THE ACT
AND COMMISSION REGULATION SECTION 33.10:
COMMODITY OPTION FRAUD

62. The allegations contained in paragraphs 1 through 47 above are realleged and incorporated by reference.

63. From at least October 1, 1995 through at least November 1, 1996 and for some period in 2000, CTS, Van Nice and Blitz violated Section 4c(b) of the Act, 7 U.S.C. � 6c(b) (1994), and Regulation 33.10, 17 C.F.R. � 33.10 (2000), in that they directly or indirectly cheated or defrauded or attempted to cheat or defraud, or deceived or attempted to deceive other persons in or in connection with an offer to enter into, the entry into, the confirmation of the execution of, or the maintenance of, commodity option transactions by, including but not limited to, making the misrepresentations and omissions set forth in paragraphs 1 through 47 above.

64. Each fraudulent representation and omission is alleged as a separate and distinct violation of Section 4c(b) of the Act, 7 U.S.C. � 6c(b) (1994), and Regulation 33.10, 17 C.F.R. � 33.10 (2000).

65. Blitz and Van Nice willfully aided, abetted, counseled, commanded, induced, procured, caused, or acted in combination or concert with CTS and each other in the foregoing violations of Section 4c(b) of the Act, 7 U.S.C. � 6c(b) (1994), and Regulation 33.10, 17 C.F.R. � 33.10 (2000). Blitz and Van Nice are therefore responsible for CTS's and each others' violations of Section 4c(b) of the Act, 7 U.S.C. � 6c(b) (1994), and Regulation 33.10, 17 C.F.R. � 33.10 (2000), pursuant to Section 13(a) of the Act, 7 U.S.C. � 13c(a) (1994).

66. Blitz and Van Nice directly or indirectly controlled CTS, and did not act in good faith or knowingly induced, directly or indirectly, the violations described above, and, pursuant to Section 13(b) of the Act, 7 U.S.C. � 13c(b) (1994), are each liable for CTS's violations of Section 4c(b) of the Act, 7 U.S.C. � 6c(b) (1994), and Regulation 33.10, 17 C.F.R. � 33.10 (2000).

67. Pursuant to Section 2(a)(1)(A)(iii) of the Act, 7 U.S.C. � 4 (1994), and Regulation 1.2, 17 C.F.R. � 1.2 (2000), CTS is liable for any violations of Section 4c(b) of the Act, 7 U.S.C. � 6c(b) (1994), and Regulation 33.10, 17 C.F.R. � 33.10 (2000), by its officers, directors, managers, employees and agents, in that all such violations were within the scope of each person's office, employment or agency with CTS.

68. Pursuant to Section 2(a)(1)(A)(iii) of the Act, 7 U.S.C. � 4 (1994), and Regulation 1.2, 17 C.F.R. � 1.2 (2000), Dearborn is liable for any violations of Section 4c(b) of the Act, 7 U.S.C. � 6c(b) (1994), and Regulation 33.10, 17 C.F.R. � 33.10 (2000), by its officers, directors, managers, employees and agents from at least October 1, 1995 through at least November 1, 1996, in that all such violations were within the scope of each person's office, employment or agency with Dearborn.

V.

By reason of the foregoing allegations, the Commission deems it necessary and appropriate, pursuant to its responsibilities under the Act, to institute public administrative proceedings to determine whether the allegations set forth in Section III above are true and, if so, whether an appropriate order should be entered in accordance with Sections 6(c) and 6(d) of the Act, 7 U.S.C. �� 9 and 13b (1994).

Section 6(c) allows the Commission to enter an order (1) prohibiting a respondent from trading on or subject to the rules of any contract market and requiring all contract markets to refuse such person all trading privileges thereon for such period as may be specified in the Commission's order, (2) assessing against the respondent a civil penalty of $100,000 for each violation of the Act or Regulations committed before November 27, 1996, and not more than the higher of $110,00 or triple the monetary gain to the respondent for each violation of the Act or Regulations committed after November 27, 1996, and (3) requiring restitution to customers of damages proximately caused by the violations of the respondent.

Section 6(d) allows the Commission to enter an Order directing that the respondent cease and desist from violating the provisions of the Act and Regulations found to have been violated.

VI.

WHEREFORE, IT IS HEREBY ORDERED that a public hearing for the purpose of taking evidence and hearing arguments on the allegations set forth in Section III above be held before an Administrative Law Judge, in accordance with the Rules of Practice under the Act, 17 C.F.R. �� 10.1 et seq. (2000), at a time and place to be fixed as provided in Section 10.61 of the Rules of Practice, 17 C.F.R. � 10.61 (2000), and that all post-hearing procedures shall be conducted pursuant to Sections 10.81 through 10.107 of the Rules of Practice, 17 C.F.R. �� 10.81 through 10.107 (2000).

IT IS FURTHER ORDERED that each Respondent shall file an Answer to the allegations against said Respondent in the Complaint within twenty (20) days after service, pursuant to Section 10.23 of the Rules of Practice, 17 C.F.R. � 10.23 (2000), and pursuant to Section 10.12(a) of the Rules of Practice, 17 C.F.R. � 10.12(a) (2000), shall serve two copies of such Answer and of any document filed in this proceeding upon Lloyd E. Friesen, Trial Attorney, Commodity Futures Trading Commission, Division of Enforcement, Three Lafayette Centre, 1155 21^st Street, NW, Washington, DC 20581, or upon such other counsel as designated by the Division. If any Respondent fails to file the required Answer or fails to appear at a hearing after being duly served, such Respondent shall be deemed in default, and the proceeding may be determined against such Respondent upon consideration of the Complaint, the allegations of which shall be deemed to be true.

IT IS FURTHER ORDERED that this Complaint and Notice of Hearing shall be served on each Respondent personally or by certified or registered mail forthwith pursuant to Section 10.22 of the Commission's Rules of Practice, 17 C.F.R. � 10.22 (2000).

In the absence of an appropriate waiver, no officer or employee of the Commission engaged in the performance of the investigative or prosecutorial functions in this or any factually related proceeding will be permitted to participate or advise in the decision upon this matter except as witness or counsel in proceedings held pursuant to notice.

NOTES:

1 With respect to the statements from CTS product advertisements set forth below, all boldface, underlining, italics, use of capital letters, and other emphases appear in the original advertisements. The font size used herein does not necessarily reflect the font size in the original advertisements; in many instances, the font size used in the original advertisements is larger or considerably larger than the font size used herein.

2 Regulation 4.41(b) requires the following disclosure: