Release: 4583-01 (CFTC Docket No. 00-06)
For Release: November 6, 2001

CFTC SETTLES FRAUD CASE AGAINST COMMODITY TRADING ADVISORS

CFTC Finds that Currency Trading Systems, its President, Joyce Roeder, and Others Fraudulently Solicited the Public to Attend Commodity Trading Seminars

CFTC Imposes Permanent Trading Ban on Roeder and Company and Orders Payment of Restitution and Penalties

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today the settlement of an action filed on February 28, 2000, against Currency Trading Systems (Currency Trading), a former California company, the president of Currency Trading, Joyce Roeder (Roeder), of Yorba Linda, California, and two Currency Trading seminar trainers, Glenn Cybulski (Cybulski) of San Rafael, California and Michael Stewart (Stewart) of Cave Creek, Arizona. The CFTC complaint charged that respondents engaged in fraud in soliciting students to pay for training in commodity futures trading (see CFTC News Release 4369-00, February 28, 2000).

The CFTC settlement order finds that from approximately February 1997 until July 1998, the respondents fraudulently solicited the public to attend seminars and to purchase trading software, in order to trade commodity futures contracts, at a cost of $4,500. According to the order, in their advertisements, promotional materials, and other solicitation materials, respondents consistently misrepresented the performance and profitability record of their trading system, their personal trading success, the risks involved in trading, and their backgrounds and experience.

Specifically, the order finds that respondents claimed that they had been able to average gains of 5 percent to 10 percent each day in their capital account when, in fact, respondents consistently lost money in their personal trading pursuant to the trading system.

The order also finds that respondents presented hypothetical trading results without including the required cautionary statement concerning the limitations of hypothetical results. According to the order, this misled clients into believing that the phenomenal hypothetical results being touted were actual results achieved by Currency Trading.

Additionally, the order finds that Roeder personally managed four client accounts without having the necessary registration with the CFTC and that she failed to provide her managed account clients with required disclosures.

The CFTC order provides for the following sanctions and other relief:

• requires each of the respondents to cease and desist from further violations of the Commodity Exchange Act and Regulations as charged;
• imposes a permanent trading ban on Roeder and Currency Trading;
• assesses restitution against Roeder and Currency Trading of up to $760,500 and a contingent civil monetary penalty of up to $760,500, pursuant to a payment plan;
• requires Cybulski to pay restitution of $21,300 and a civil monetary penalty of approximately $84,000 and Stewart to pay restitution of $13,500 and a civil monetary penalty of approximately $21,000; and
• requires each respondent to comply with undertakings, including never applying for registration with the CFTC and never acting as an officer, principal or employee of a CFTC registrant.

In consenting to the entry of the order and the findings in the order, the respondents neither admitted nor denied the findings of the order or the allegations of the complaint.

To see a copy of the Settlement Order, go to the following Internet web address http://www.cftc.gov/

Media Case Contact:
Richard Wagner
Associate Director
Division of Enforcement
(202) 418-5390

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