Release: 4898-04
For Release: March 11, 2004

Federal Court Enters Interim Order Barring Los Angeles-Based Firm, Profit Partners, Inc., From Defrauding Customers in Selling Commodity Futures and Options Trading Systems; CFTC Complaint Charges Profit Partners with Fraud

WASHINGTON, D.C. - The U.S. Commodity Futures Trading Commission (CFTC) announced today that the Honorable Lourdes G. Baird of the U.S. District Court for the Central District of California entered a consent order of preliminary injunction against Profit Partners, Inc., a defendant in a CFTC enforcement action, which bars the firm from engaging in fraud during the pendency of the CFTC civil action against the firm. The order was entered on February 24, 2004.

The CFTC complaint, filed on December 22, 2003, charges Profit Partners, Inc. with fraudulently claiming to potential customers that Profit Partners' commodity trading systems generated annual profits of from 300 to 600 percent, as well as guaranteeing that their commodity trading systems would be profitable. The CFTC complaint also alleges that a Profit Partners representative falsely claimed that one of the firm's trading systems was "CFTC approved." However, as stated in the CFTC complaint, the CFTC did not verify, endorse, or otherwise pass upon the adequacy, accuracy, or success of any trading advice, system, or methodology with respect to Profit Partners, Inc., or on the trading activities of any of Profit Partners Inc.'s alleged customers. Profit Partners, Inc. consented to the entry of the preliminary injunction without admitting the allegations of the complaint.

In its ongoing litigation, the CFTC seeks a permanent injunction against Profit Partners, Inc., repayment of ill-gotten gains and customer losses, and monetary penalties.

The following CFTC Division of Enforcement staff members are responsible for this case: Rachel Entman, James H. Holl, III, Erin Vespe, and Gretchen L. Lowe.

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

Staff Contact
Gretchen L. Lowe, Associate Director
CFTC Division of Enforcement
(202) 418-5379

Related Document
Order
Complaint