Release: 5241-06

For Release: October 5, 2006

U.S. Commodity Futures Trading Commission Settles Commodity Pool Fraud Charges with Florida Resident Eddie Holman Jr.

Washington, D.C.— The U.S. Commodity Futures Trading Commission (CFTC) announced today the issuance of an administrative order instituting and simultaneously settling charges under the Commodity Exchange Act (CEA) against Eddie Holman Jr., of Port St. Lucie, Florida, who did business under the name C-THRU Inc.

The order, filed on September 27, 2006, finds that, beginning in at least September 2000, Holman personally solicited members of the public to deposit funds with the C-THRU pool and, in doing so, falsely represented that the pool was earning profits through the trading of commodity futures. Holman also delivered false performance statements to pool participants that showed the pool, and thus the participants’ investments, was generally making profits. When Holman did trade, the trading generally incurred losses and the account closed with a net loss.

The CFTC order further finds that by such conduct, Holman, acting as a commodity pool operator, defrauded pool participants in violation of the CEA and CFTC regulations.

Finally, the order finds that Holman commingled pool funds with other funds, failed to furnish monthly trading statements received from the futures commission merchant, and failed to maintain certain records, all of which violate CFTC regulations.

The order requires Holman to pay a total of $146,600 in restitution to five pool participants and a $240,000 civil monetary penalty. In addition, the order permanently prohibits Holman from trading on, or subject to the rules of, any registered entity, and requires him to comply with certain undertakings, including not applying for registration with the CFTC.

In September 2006, Holman was arrested in Jupiter, Florida, by the Indian River County Sheriff’s Office and criminally charged with two second degree felonies, organized scheme to defraud ($50,000 or more) and grand theft ($50,000 or more).

The following CFTC Division of Enforcement staff were responsible for this case: Christine M. Ryall, Patricia Gomersall, Paul G. Hayeck, and Joan Manley.

Media Contacts
Alan Sobba
202-418-5080

Dennis Holden
202-418-5088
 

Last Updated: July 26, 2007