Release: #3976-96 (Civ 95-6221)
For Release: December 3, 1996
FLORIDA DISTRICT COURT JUDGE GRANTS CFTC A PERMANENT INJUNCTION AGAINST JDI LIMITED D/B/A FUTURE VISION, RICHARD A. BANDEMER AND FREDERICK W. TAFT, BANNING DEFENDANTS FROM THE FUTURES INDUSTRY AND ORDERING DISGORGEMENT, AMONG OTHER SANCTIONS
Settlement Stems from CFTC Charges that the Defendants Acted as Unregistered CTAs and Committed Fraud in Connection with the Sale of a Futures Trading Program
WASHINGTON - The Commodity Futures Trading Commission (CFTC) announced today that U.S. District Judge Jose A. Gonzalez of the U.S. District Court for the Southern District of Florida entered a consent order of permanent injunction against JDI Limited Inc. d/b/a Future Vision (JDI), a Florida corporation formerly located in Fort Lauderdale, Florida; Richard A. Bandemer of Boca Raton, Florida, the president of Future Vision; and Frederick Taft of Fort Lauderdale, a former employee of Future Vision. None of the defendants has ever been registered with the CFTC.
The consent order, entered on November 27, 1996, settles an amended eight- count civil complaint which alleged that defendants violated the anti-fraud and registration provisions of the Commodity Exchange Act (CEA), CFTC regulations, and provisions of Florida law in connection with the sale of a customized electronic trading system called the Micro-Trading System (MTS), which generated advice for buying and selling Swiss Franc futures. In June, the CFTC settled charges against Oster Communications Inc. (Oster) of Cedar Falls, Iowa, with the issuance of an administrative order on June 20, 1996, finding that Oster joined defendants JDI and Bandemer in the marketing and support of MTS (See CFTC News Releases #3824-95, March 7, 1995 and #3921-96, June 20, 1996).
Defendants Represented to Customers that 80 Percent
of Their Trades Would Be Profitable Using the MTS System
As alleged in the CFTC complaint, the defendants solicited customers to purchase their trading system by advertising in local newspapers and distributing promotional materials to individuals who visited their offices and attended regional business conventions. The complaint charged that defendants induced customers to purchase
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CFTC News Release: #3976-96 (Civ 95-6221) - 2 -
MTS by making false, deceptive, and misleading representations of material facts, including that if customers followed the defendants' system, 80 percent of their trades would be profitable.
The complaint further alleged that the defendants operated as unregistered commodity trading advisors (CTAs) by offering MTS to the general public. In marketing their system, the defendants held week-long training classes, after which they provided lifetime trading support, remedial instruction, daily telephone reports detailing trades made by the defendants, and review and critique of individual trades made by purchasers, in person and through a voice-mail system, according to the complaint.
Order Brings Total of Disgorgement in This CFTC Enforcement Action
to Above the $1 Million Level
Under the court's consent order, JDI, Bandemer, and Taft are required to disgorge for the benefit of their customers in excess of $385,000 in ill-gotten gains. This amount, combined with the more than $700,000 already disgorged by Oster under the terms of its settlement agreement with the CFTC, will result in the return of over $1 million to customers who purchased defendants' trading system. The order also provides that Bandemer disgorge additional funds should his income exceed a specific amount at any time during the next five years.
Additionally, the defendants are enjoined from further violations of the CEA, CFTC regulations, and Florida laws charged in the amended complaint; prohibited from seeking registration with the CFTC in any capacity, soliciting orders, accepting funds or advising others regarding commodity futures and options contracts; and permanently enjoined from trading such contracts.
The Attorney General's Office of the State of Florida is administering the return of funds to customers. The Florida Attorney General, a co-plaintiff with the CFTC in this action, charged the defendants with misrepresenting facts in connection with their commercial activities, filing an untruthful and incomplete business disclosure statement, and engaging in civil theft.