Release: 4915-04 (CFTC Docket No. 03-18)
For Release: April 15, 2004

U.S. COMMODITY FUTURES TRADING COMMISSION FINDS THAT TRADING ADVISOR USED WEBSITE TO MISLEAD PUBLIC ABOUT PROFITABILITY OF COMMODITY FUTURES TRADING SYSTEMS AND SERVICES

Respondents Roy M. Sidewitz and Qi2 Technologies, Inc. Settle Charges That They Made False Claims About Commodity Futures Products and Services

WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) announced today the settlement of an administrative enforcement action that was filed on June 30, 2003, against Roy M. Sidewitz of Boulder, Colorado and his firm, Qi2 Technologies, Inc. (Qi2) (see CFTC News Release 4812-03). The CFTC order finds that Sidewitz used misleading advertising on the Internet in the sale of commodity futures products and services.

Specifically, the order finds that, from at least late 1998 to January 2003, Sidewitz fraudulently solicited clients through his www.cybrlink.com website to purchase three items: a trading book entitled How I Double My Money Annually In The Market, which describes a system for trading options on commodity futures; a commodity trading system called the Coefficient of Thrust Day Trading System for use in the commodity futures and options markets; and a subscription-based commodity options trading advisory service called the MasterTrader Program. According to the order, in his advertising on the Cybrlink.com website, Sidewitz falsely touted substantial profits from using the trading systems and commodity options trading advisory service, and mischaracterized the performance records of the systems and advisory service as being based on actual trades, when they were actually based on simulated or hypothetical trades.

The order, entered on April 6, 2004, requires Sidewitz and Qi2 to pay a $25,000 civil monetary penalty, to refrain from applying for or seeking exemption from registration with the CFTC, and to cease and desist from further violations of the Commodity Exchange Act and CFTC regulations. The order also requires them to refrain from making unsubstantiated claims of profits or risk in the use of commodity trading systems or methods. In consenting to the entry of the CFTC’s order, Sidewitz and Qi2 neither admitted nor denied the findings made in the order.

A copy of the CFTC order may be found at http://www.cftc.gov.

The following Division of Enforcement staff were responsible for this case: Grant Collins, John Dunfee, Paul Hayeck, and Joan Manley.

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