38. At least fifteen (15) persons invested at least $640,000 with the Ice Fund.

39. At Konkel's directive, individuals who invested monies in the Ice Fund made checks payable to the "Venture Fund." Konkel represented to investors that the Venture Fund was another name for Ice Capital Management, Inc. However, in fact, Konkel deposited these investor funds in his personal checking account at the CUNA Credit Union located in Madison, Wisconsin in the name of "Michael Konkel d/b/a Venture Fund." Konkel is the sole signatory on the Venture Fund account. Konkel also maintained a second personal checking account in his name, the Konkel bank account. Records of bank accounts show that there are no segregated accounts for monies collected from investors.

40. Konkel deposited money from investors into the Venture Fund account, but then typically withdrew the funds and transferred them to Konkel's bank account, usually within the same business day. Since 1996, a total of approximately $1,300,000 has been deposited into the Venture Fund account and approximately $950,000 of the $1,300,000 has been transferred from the Venture Fund account to Konkel's bank account.

41. From Konkel's bank account, Konkel transferred the money again, usually by the next business day. Konkel transferred some of these funds to a commodity futures trading account in his name at Iowa Grain. A total of approximately $270,000 has been transferred to an account in his name at Iowa Grain from Konkel controlled bank accounts since 1996.

42. Konkel transferred other funds into personal securities accounts in his name at Bear Stearns. Konkel maintained two accounts at Bear Stearns, one in the name of "Michael Konkel" and one in the names of "Marlene Cordes and Michael Konkel." Konkel has stated that the funds of Ice Capital Management, Inc. are held in these accounts at Bear Stearns. A total of approximately $200,000 has been transferred to two securities accounts at Bear Stearns from Konkel controlled bank accounts since 1996.

43. Konkel made misrepresentations to investors regarding the use of investor monies. Konkel informed investors that investor monies would be used for the Ice Fund. However, Konkel did not inform investors that investor monies were in fact being used by Konkel for his personal expenses.

44. Konkel commingled the property of the Ice Fund with the property of other persons, including himself, by depositing investor monies into his personal bank and commodity accounts.

VI

VIOLATIONS OF THE COMMODITY EXCHANGE ACT

COUNT I

VIOLATIONS OF SECTION 4b(a)(i)-(iii) OF THE ACT,

7 U.S.C. � 6b(a)(i)-(iii):

FRAUD BY MISREPRESENTATION

45. Paragraphs 1 through 44 are realleged and incorporated herein.

46. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, through use of the mails and other means and instrumentalities of interstate commerce, directly or indirectly, (i) cheated or defrauded or attempted to cheat or defraud other persons; (ii) willfully made or caused to be made to other persons false reports or statements thereof, or willfully entered or caused to be entered for other persons false reports thereof; or (iii) willfully deceived or attempted to deceive other persons, caused investor funds to be used for, among other things, trading commodity futures and options contracts, in violation of Section 4b(a)(i)-(iii) of the Act, 7 U.S.C. � 6b(a)(i)-(iii).

47. Konkel engaged in this conduct in or in connection with orders to make, or the making of, contracts of sale of commodities for future delivery, made, or to be made, for or on behalf of other persons where such contracts for future delivery were or may be used for (a) hedging any transaction in interstate commerce in such commodity, or the products or byproducts thereof, or (b) determining the price basis of any transaction in interstate commerce in such commodity, or (c) delivering any such commodity sold, shipped or received in interstate commerce for the fulfillment thereof.

48. Konkel has made false, deceptive and/or misleading representations of material facts relating to the likelihood of profit, risk, fund performance, and track record from his trading of commodity futures and has issued false and misleading reports in connection with the Ice Fund, including, but not limited to, the following statements and omissions:

Konkel made these statements with knowledge of their falsity or with reckless disregard for their truth or falsity.

COUNT II

VIOLATIONS OF SECTION 4o(1) OF THE ACT, 7 U.S.C. � 6o(1),

AND SECTION 4.41(a) OF THE REGULATIONS, 17 C.F.R. � 4.41(a):

FRAUD BY COMMODITY POOL OPERATORS and

FRAUDULENT ADVERTISING BY A COMMODITY POOL OPERATOR

49. Paragraphs 1 through 48 are realleged and incorporated herein.

50. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, by acting as a commodity pool operator, and by use of the mails or other instrumentalities of interstate commerce, directly or indirectly, employed devices, schemes or artifices to defraud customers, or engaged in transactions, practices, or a course of business conduct which operated as a fraud or deceit upon customers, in violation of Section 4o(1) of the Act, 7 U.S.C. � 6o(1).

51. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, advertised in a manner which: (1) employed a device, scheme or artifice to defraud participants or clients or prospective participants or clients; or (2) involved any transaction, practice or course of business which operated as a fraud or deceit upon participants or clients or prospective participants or clients in violation of Section 4.41(a) of the Regulations, 17 C.F.R. � 4.41(a).

COUNT III

VIOLATIONS OF SECTIONS 4m(1) OF THE ACT, 7 U.S.C. � 6m(1):

OPERATING A COMMODITY POOL WITHOUT

BEING REGISTERED WITH THE COMMISSION

52. Paragraphs 1 through 51 are realleged and incorporated herein.

53. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, operated a commodity pool without being registered with the Commission in violation of Section 4m(1) of the Act, 7 U.S.C. ��6m(1).

COUNT IV

VIOLATIONS OF SECTION 4n(4) OF THE ACT, 7 U.S.C. � 6n(4), and

SECTIONS 4.20(c), 4.21, and 4.22, OF THE

REGULATIONS, 17 C.F.R. �� 4.20(c), 4.21, and 4.22:

COMMINGLING POOL PROPERTY WITH ANY OTHER PROPERTY,

FAILURE TO REPORT TO POOL PARTICIPANTS, and

FAILURE TO DELIVER POOL DISCLOSURE DOCUMENT

54. Paragraphs 1 through 53 are realleged and incorporated herein.

55. Section 4n(4) of the Act, 7 U.S.C. � 6n(4), provides that every CPO shall regularly furnish statements of account to each participant in his operations in the form and manner prescribed by the Commission and shall include in such statements complete information as to current status of all trading accounts in which a pool participant has an interest. Section 4.22 of the Regulations, 17 C.F.R. � 4.22, describes the form and manner of such statements.

56. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, failed to distribute to each pool participant an Account Statement and Annual Report setting forth the information contained in � 4.22 of the Regulations, 17 C.F.R. � 4.22, in violation of � 4.22 of the Regulations, 17 C.F.R. � 4.22.

57. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, commingled the property of pool participants with his property in violation of Section 4.20(c) of the Regulations, 17 C.F.R. � 4.20(c).

58. Beginning in approximately 1996 and continuing until the present, Konkel, by the conduct described above, failed to deliver or caused to be delivered to the prospective participant a Disclosure Document for the pool setting forth the information contained in � 4.24 of the Regulations, 17 C.F.R. � 4.24, in violation of � 4.21(a) of the Regulations, 17 C.F.R. � 4.21(a), and failed to receive from the prospective participant a signed acknowledgement stating that the prospective participant received a Disclosure Document for the pool, in violation of � 4.21(b) of the Regulations, 17 C.F.R. � 4.21(b).

VI

RELIEF REQUESTED

WHEREFORE, Plaintiff respectfully requests that this Court, as authorized by Section 6c of the Act, 7�U.S.C. ��13a-1, and pursuant to its own equitable powers enter:

A. An order of permanent injunction enjoining Konkel, all persons insofar as they are acting in the capacity of agents, servants, employees, successors, assigns, or attorneys of Konkel, and all persons insofar as they are acting in active concert or participation with Konkel who receive actual notice of the Order by personal service or otherwise, from directly or indirectly:

B. An order directing that Konkel is permanently restrained, enjoined, and prohibited permanently restrained, enjoined, and prohibited from:

C. An order directing that Konkel make an accounting to this Court of all his assets and liabilities, together with all funds he received from and paid to investors and other persons in connection with commodity futures or option transactions or purported commodity futures or option transactions, and all disbursements for any purpose whatsoever of funds received from commodity futures or option investors, including salaries, commissions, fees, loans and other disbursements of money and property of any kind, from January 1, 1996 to and including the date of such accounting;

D. An order requiring Konkel and any of his successors to disgorge all benefits received from acts or practices which constitute violations of the Act and the Regulations as described herein, including pre-judgment and post-judgment interest;

E. An order requiring Konkel to make restitution to every customer whose funds were received or utilized by him as a result of acts and practices that constituted violations of the Act and the Regulations as described herein, including pre-judgment interest and post-judgment interest;

F. An order requiring Konkel to pay a civil penalty under Section 6c(d) of the Act, 7�U.S.C. ��13a-1(d), in an amount of not more than $110,000 per violation (or $100,000 for violations prior to November 27, 1996) or triple Konkel's monetary gain; and

G. Such other equitable relief as this Court may deem necessary or appropriate under the circumstances.