Release: 4584-01
For Release: November 13, 2001

CFTC ISSUES CONSUMER ADVISORY WARNING THE PUBLIC ABOUT COMMODITY SCAMS ARISING OUT OF THE TRAGIC EVENTS OF SEPTEMBER 11, 2001

WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) announced today that it issued a Consumer Advisory warning the public to be wary of companies promising profits from commodity futures and options trading based on information relating to the terrorist attacks against the World Trade Center and the Pentagon on September 11, 2001, and the war on terrorism. Such sales pitches are false. The prices of commodity futures and options contracts already take into account all known or predictable market conditions, such as changes in demand for a commodity or known shortages of a commodity or problems in production or delivery of that commodity due to major events in the world.

The CFTC issued this Advisory after receiving several reports of companies attempting to take advantage of the September 11, 2001, tragedies and the subsequent world events. Consumers are advised to watch for the warning signs listed below, and to take precautions before placing their funds with any company that offers leveraged or financed commodity transactions:

• Avoid Any Company That Promises Large Profits With Little Risk From Trading Relating to the Recent Terrorist Attacks and the War on Terrorism or Other Well Known Current Events or Seasonal Changes;
• Be Careful When Receiving Unsolicited Phone Calls or Emails about Investments -- Especially from Salespersons or Companies with Which You Are Unfamiliar;
• Be Wary of High-Pressure Efforts to Invest Immediately and Send Cash via Overnight Shipping, the Internet, or by Mail, or Otherwise;
• Don't Deal With Individuals Who Won't Give You Their Background Information or Last Name or Provide Documentation;
• Prior to Trading, Investigate the Company: Contact the CFTC, the National Futures Association, Your State Attorney General's Office of Consumer Protection, or the Better Business Bureau; and
• If in Doubt, Do Not Give Money to Anyone. If You Can't Get Solid Information about the Company and the Investment, You May Not Want to Risk Your Money.

To see a copy of the Consumer Advisory, go to the following Internet web address: http://www.cftc.gov/. Note to editors: The CFTC has also published four other Consumer Alerts, which can be found at http://www.cftc.gov/cftc/cftccustomer.htm - advisory.

Media Contact:
Daniel Nathan
Deputy Director, CFTC Division of Enforcement
(202) 418-5314

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