Release: 4939-04 (04 CV-4079)
For Release: June 14, 2004

U.S. COMMODITY FUTURES TRADING COMMISSION CHARGES SANTA MONICA, CALIFORNIA, BUSINESSMAN JAMES WEATHERFORD WITH FRAUD

WASHINGTON, D.C. -- The United States Commodity Futures Trading Commission (CFTC) announced today the filing of an enforcement action on June 8, 2004 in the United States District Court for the Central District of California against James Weatherford (Weatherford) of Santa Monica, California, the operator of a website called www.managed-mini.com. The CFTC complaint charges that Weatherford, a commodity pool operator, committed fraud in soliciting customer funds to trade S&P 500 e-mini futures contracts.

Specifically, the complaint alleges that Weatherford, through his website, falsely claimed that he trades the funds of commodity pool participants through a registered commodity trading advisor, Vankar Trading, and that Vankar uses trading programs developed by an entity known as XtradeUS to make trades for Weatherford's commodity pool. According to the complaint, Vankar Trading and XtradeUS deny any involvement with Weatherford, his commodity pool or the Managed-Mini website. The complaint also alleges that Weatherford, through the Managed-Mini website, falsely claims that the purported commodity futures trading pursuant to the XtradeUS program results in average monthly returns of 26 percent. The complaint goes on to allege that Weatherford also failed to disclose the significant risks inherent in trading commodity futures contracts.

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

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

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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) 418-5320

Related Document
Complaint