Release #3868-95: October 11, 1995

CFTC FILES CIVIL ACTION CHARGING GARY BRUCE ANDERSON WITH DEFRAUDING COMMODITY FUTURES INVESTORS OF OVER $256,000

District Court Judge Issues Ex Parte Restraining Order in the Action, Freezing Anderson's Assets and Appointing a Receiver

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) today announced the filing of an eight-count civil complaint in the U.S. District Court for the Northern District of Illinois against Gary Bruce Anderson of Syracuse, Indiana. The CFTC complaint alleges that from 1992 through the present Anderson cheated and defrauded at least 11 investors in Illinois and Indiana in soliciting and receiving a total of more than $256,000 to trade commodity futures contracts.

Specifically, the complaint charges Anderson with cheating and defrauding investors by:

• misappropriating money solicited from investors;
• guaranteeing their principal investment;
• misrepresenting that he would open an account in the name of each investor at a brokerage firm with the money they were giving him;
• misrepresenting that their funds were only to be used, and were only used, to trade commodity futures, when actually such funds were used to pay the debts and expenses of Anderson and others;
• misrepresenting that he had developed a unique trading system which would virtually eliminate the possibility of loss;
• misrepresenting that the investors would receive over 100 percent annual profit on their investments;
• falsely quoting the price of the S&P futures contract which Anderson was going to purchase for them; and
• falsely representing that he was a professional commodity broker.

In addition, Anderson is charged with converting investors' funds to his own use and the use of others -- including two trusts controlled by Anderson -- and issuing customer account statements that, among other things, falsely stated that profits had been generated when Anderson had actually lost money trading. The CFTC complaint also charges Anderson with acting in capacities that require registration with the Commission.

On the same day that the complaint was filed, U.S. District Court Judge Milton Shadur issued an ex parte restraining order freezing all of Anderson's assets and preserving his books and records. Judge Shadur also appointed R. Dickey Hamilton of the law firm of Miller, Shakman, Hamilton, Kurtzon & Schlifke as receiver [(312) 759-7220].

Hearing Scheduled for October 20 on the CFTC's Motion for a Preliminary Injunction

A hearing on the CFTC's motion for a preliminary injunction is scheduled for October 20, 1995. The CFTC is seeking full restitution to investors, preliminary and permanent injunctions, a civil monetary penalty against Anderson, and the disgorgement of the assets of the Gary B. Anderson Trust and the Anderson Family Trust that can be traced to Anderson's alleged fraud.

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