Release: 4945-04
For Release: June 29, 2004

U.S. COMMODITY FUTURES TRADING COMMISSION CHARGES FLORIDA BUSINESSES AND EMPLOYEES WITH FRAUD

CFTC Alleges that Next Financial Services Unlimited, Inc., New World Trading, LLC, and Employees Aaron Ettinger and Robert LaRocca Fraudulently Solicited Customers to Trade Illegal, Off-Exchange Foreign Currency Option Contracts

Federal Court Enters Order Freezing Defendants’ Assets and Barring Destruction of Books and Records

WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing of an injunctive complaint in the U.S. District Court for the Southern District of Florida charging Next Financial Services Unlimited, Inc., New World Trading LLC, Robert LaRocca, all of Delray Beach, Florida, and Aaron Ettinger, of Boca Raton, Florida, with fraudulently soliciting customers to trade illegal, off-exchange foreign currency (forex) option contracts.

The complaint alleges that, since at least September 2003, the defendants fraudulently solicited a total of $344,000 from at least five customers through personal solicitations and the website www.nextfinancialservices.com by misrepresenting the profit potential of foreign currency options and the risk involved in trading options. The complaint also alleges that the defendants misled customers about the effect current events would have on option prices by citing well-known public information that was already factored into the option prices.

Federal Court Order Freezes Defendants’ Assets

On June 23, 2004, the Honorable Kenneth L. Ryskamp of the U.S. District Court for the Southern District of Florida entered a statutory restraining order against all defendants, freezing their assets and preventing the destruction or alteration of the firms’ books and records.

The CFTC is seeking a permanent injunction against the defendants, repayment of defrauded customers, the return of ill-gotten gains, and monetary penalties for violating the Commodity Exchange Act.

The Commission appreciates the assistance of the Manitoba Securities Commission in investigating this matter.

The following CFTC Division of Enforcement staff members are responsible for this case: Rachel Entman, Erin E. Vespe, Gretchen L. Lowe, and Vincent McGonagle.

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CFTC's Consumer Advisories Warn Customers to Protect Themselves from the Many Types of Fraudulent Commodity Scams Being Perpetrated in Today's Financial Markets, Including Claims of Profits Due to Well-Known Current Events and Investing in Foreign Currency Futures and Options (Forex)
The CFTC has published several Consumer Advisories (posted on the CFTC website at www.cftc.gov/cftc/cftccustomer.htm) alerting the general retail public to warning signs of possible fraudulent commodity scams and offering precautions customers should take before committing funds. These CFTC customer-protection Advisories alert the general public to solicitations to trade commodity futures and option contracts based on claims that a lot of money can be made with little or no risk by trading commodities that are affected by well-known current world events. Another CFTC Advisory on Forex trading urges the public to scrutinize solicitations to trade futures and options on foreign currencies.

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

Staff Contact
Vincent McGonagle
Senior Deputy Director
CFTC Division of Enforcement
202-418-5387

Related Document
Complaint
Order