Release: #4032-97 (3-96-CV-2734-T)

For Release: July 1, 1997



TEXAS COURT ISSUES PERMANENT INJUNCTION IN CFTC ACTION AGAINST EUGENE MORRIS WALTER AND ORDERS HIM TO PAY CUSTOMER RESTITUTION

Federal District Court's Action Stems from CFTC Civil Action Charging the Defendant with Violating Federal Commodity Law by Providing False Statements to Commodity Investors and Commingling Funds

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that on June 26, 1997, the U.S. District Court for the Northern District of Texas (Dallas Division) entered a consent order of permanent injunction and ancillary relief against Eugene Morris Walter of Dallas, Texas, who was charged with fraud in a CFTC enforcement action filed on September 30, 1996 (CFTC News Release #3947-96, October 1, 1996).

The settlement order enjoins Walter from violating the anti-fraud and registration provisions of the Commodity Exchange Act (CEA), as charged, and requires him to pay restitution to customers totalling more than $62,000.
The court's order also finds that Walter:

• deliberately misrepresented to his futures and options customers that their accounts were profitable when they were losing money;
  
• misapplied customer funds intended for customer futures and options trading, and unlawfully commingled customers' funds with each others' and his own;
  
• failed to provide customers with required risk disclosure statements, transaction confirmations, and account information; and
  
• failed to register with the CFTC as a commodity trading advisor and futures commission merchant, as required.
  

Under the terms of the order, Walter may not act as a futures commission merchant, commodity pool operator, commodity trading advisor, introducing broker, floor broker, floor trader, as an associated person or registrant under the CEA. In addition, he may not apply for CFTC registration in any capacity in the future, solicit customers or participants in connection with commodity futures or options trading, and violate the registration and disclosure document requirements of the CEA and CFTC regulations.