Release: 5006-04
For Release: October 12, 2004

CFTC CHARGES ILLINOIS-BASED COMMODITY TRADING ADVISOR AND ITS PRINCIPALS WITH MISREPRESENTING PROFITS AND RISKS

The Options Advisor L.L.C. and Principals Mark Melin and David Farrra Charged

WASHINGTON, D.C. - The U.S. Commodity Futures Trading Commission (CFTC) announced today the issuance of an administrative order filing and simultaneously settling charges of fraud against The Options Advisor LLC (Options Advisor), and its principals Mark Melin and David Farra.

The order finds that from at least November 2003 through January 2004, Options Advisor, operating through the website www.guaranteedtrades.com, fraudulently solicited subscribers for the Dow Options Trader trading advisory service by guaranteeing that subscribers would trade profitably. According to the order, by making such a guarantee, Options Advisor misrepresented the risks associated with futures and options trading, and overstated the likelihood that subscribers would trade profitably. The order charges that this conduct violated the Commodity Exchange Act (CEA).

Respondents agreed to the entry of the order without admitting or denying the findings in the order. The order requires the respondents to pay a $10,000 civil monetary penalty, make full restitution to every subscriber that purchased the trading advisory service between November 2003 and January 2004, as well as cease and desist from further violations of the CEA and CFTC regulations.

This case reflects the work of the following CFTC investigators and attorneys: Joseph Konizeski, Grant Collins, and Paul Hayeck.

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

Staff Contact
Joan Manley
Deputy Director, CFTC Division of Enforcement
(202) 418-5356

Related Document
Order