Release: 4906-04
For Release: March 24, 2004

PORTLAND MAN JAILED BY FEDERAL COURT FOR CONTEMPT FOR VIOLATION OF ORDER PREVENTING DISSIPATION OF CUSTOMER FUNDS IN FOREIGN CURRENCY (FOREX) FRAUD CASE

WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today that Russell Cline of Portland, Oregon, was jailed on March 15, 2004, for violating a federal court order that froze his assets for the protection of defrauded customers. The freeze order was entered in a CFTC enforcement action currently pending in the United States District Court for the District of Oregon.

On February 25, 2004, United States District Judge Garr King issued an opinion finding Cline in contempt of the freeze order and directed that Cline be jailed until he complies with that order. Judge King's opinion found that Cline, in direct violation of the court’s order, had engineered the removal of frozen assets worth more than $126,000.

The freeze order stems from a CFTC complaint filed on May 8, 2003, charging Orion International, Inc. (Orion), Cline (its President), and other defendants with fraudulently soliciting at least $27 million from over 600 individuals to participate in illegal foreign currency trading that the CFTC alleges is unlawful futures trading. According to the CFTC complaint, the defendants allegedly misappropriated at least $9 million in customer funds and used that money to fund a lavish lifestyle, including the purchase eight large homes in Portland and at least 24 luxury automobiles. (See CFTC News Release 4787-04, May 14, 2003.)

When the complaint was filed, the CFTC obtained an order freezing the assets of the defendants and the appointment of a temporary receiver. (See CFTC News Release 4787-03, May 14, 2003.)

The following CFTC Division of Enforcement staff members are responsible for this case: Alan Edelman, Todd Kelly, and Richard Foelber. A copy of the contempt opinion and order may be obtained at www.cftc.gov.

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Media Contacts
Alan Sobba (202) 418-5080
Dennis Holden (202) 418-5088
Office of External Affairs

Staff Contact
Richard P. Foelber
Deputy Chief,
Office of Cooperative Enforcement
CFTC Division of Enforcement
(202) 418-5347

Related Document
Contempt Opinion