Six customers of Man Financial Inc. will receive $196,900 in restitution ordered by the CFTC, which also ordered the giant futures commission merchant (FCM) to strengthen its supervisory system for overseeing sales and solicitations by its employees and brought a civil monetary penalty of $120,000 against the company.
The charges stem from the actions of Steven M. Camp, an employee of the FCM who, according to the CFTC, defrauded customers by soliciting them to participate in a money-losing trading program between August 2004 and June 2005. Those customers lost $165,000.
Camp, a resident of Chicago, was also found by the CFTC to have fraudulently solicited customers for a Web-based trading system called the Natural Trigger Point System (NTPS) from September 2002 through March 2003. NTPS traded through Man. Camp allegedly misrepresented that the system was profitable and customers lost a reported $73,000. Camp has been ordered to pay a penalty of $120,000 and has been permanently barred from trading commodity futures. He may never again apply for registration or for an exemption.
“It’s a strong statement by the commission that you can’t solicit for these third-party system developers without being responsible for what you say,” says Rosemary Hollinger, associate director and regional counsel for the CFTC enforcement division. “Just because the system developer is a third party, it doesn’t change the fact that what you say has to be truthful. It also makes a strong statement that the FCMs are responsible for what their account executives are saying about these third party system developers.”