Release: 5023-04
For Release: December 2, 2004

U.S. COMMODITY FUTURES TRADING COMMISSION CHARGES NORTH CAROLINA RESIDENT ROGER OWEN AND HIS COMPANIES WITH DEFRAUDING CUSTOMERS IN SALES OF A COMMODITY TRADING SYSTEM

WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a complaint in the U.S. District Court for the Middle District of North Carolina against Roger Owen, Longhorn Financial Advisors, LLC (Longhorn), Phoenix Financial Group (Phoenix), all of Greensboro, North Carolina, and Daniel Belbeck of Nashville, Tennessee, alleging that Owen, Longhorn, and Phoenix used fraudulent advertising and promotional materials to solicit customers to purchase their computerized commodity trading system.

According to the complaint, Owen and Longhorn, as part of their estate planning services, and Phoenix fraudulently solicited customers to purchase a computerized trading system by falsely representing that their system had generated huge customer profits. The complaint charges that, in reality, no customer who purchased and used the commodity trading system ever profited from its use. In addition, the complaint alleges that customers who purchased the trading system lost funds totaling more than $200,000 trading futures, in addition to paying Longhorn and Phoenix an aggregate $120,000 for the computer trading system.

The complaint further alleges that Longhorn and Phoenix held themselves out to the public as commodity trading advisors (CTAs) and should have been registered with the CFTC. Similarly, the complaint alleges that both Owen and Belbeck, the individuals who solicited customers, should have been registered as associated persons of a CTA. Finally, the complaint alleges that Longhorn and Phoenix failed to provide disclosure documents to customers, as required by CFTC regulations.

In its continuing action, the CFTC seeks full restitution and disgorgement, civil monetary penalties, a permanent injunction, trading prohibitions, and such other remedial ancillary relief as the court may deem appropriate.

The following CFTC Division of Enforcement staff members are responsible for this case: Frank Rangoussis, Jan Folena, and Richard Glaser.

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

Staff Contact
Richard Glaser
Associate Director
CFTC Division of Enforcement
(202) 418-5358

Related Documents
Complaint