CFTC News Release 4448-00 (97-Civ-7061)
For Release September 19, 2000
ILLINOIS COURT ENTERS CONSENT ORDERS OF PERMANENT INJUNCTION AGAINST RANDALL WILLIAMS AND TERRY G. WIGTON IN CASE INVOLVING A FRAUDULENT COMMODITY POOL SCHEME
Williams and Wigton Are Barred From the Commodities Industry and Ordered to Pay Restitution and Disgorgement Amounts Totaling More than $1.5 Million
WASHINGTON � The Commodity Futures Trading Commission (CFTC) announced today that the Honorable Harry D. Leinenweber of the U.S. District Court for the Northern District of Illinois entered consent orders of permanent injunction against Randall Williams of Toledo, Ohio, and Terry G. Wigton of Cuyhoga Falls, Ohio, in a case involving the fraudulent operation of multiple commodity pools.
The orders, entered on September 12, 2000, arise out of an amended complaint filed by the CFTC on January 28, 1998 (see CFTC News Release 4103-98, February 9, 1998). The amended complaint alleged that Williams and Wigton solicited general partners and investors to form commodity pools in Ohio, Tennessee, and Virginia and defrauded pool investors by misrepresenting the risk of trading futures, failing to disclose trading losses, and issuing false reports, among other things, in violation of the anti-fraud provisions of the Commodity Exchange Act (CEA). The amended complaint also alleged that Williams and Wigton acted as commodity trading advisors, associated persons of commodity pool operators, or associated persons of a commodity trading advisor without being registered with the CFTC in violation of the CEA.
Under the consent orders, the court makes findings of fact that the defendants defrauded investors, as charged in the amended complaint. The consent orders require payment of restitution by Williams totaling more than $800,000, including disgorgement, pursuant to a payment plan, and the payment of restitution by Wigton totaling more than $700,000, including disgorgement.
The consent orders also permanently enjoin Williams and Wigton from engaging in activities related to the commodity industry on behalf of others or themselves, from controlling or directing the trading of commodity accounts on behalf of other persons, entities or themselves and from seeking registration, or claiming exemption from registration, with the CFTC. Lastly, the consent orders permanently enjoin Williams and Wigton from violating federal commodity law and CFTC regulations. Under the terms of the court�s orders, defrauded investors are deemed to be third-party beneficiaries of the orders and may individually seek enforcement of the orders.
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