WASHINGTON, D.C. – Barbara Cohen of Tarpon Springs, Florida, has been charged with making false statements and promoting misleading trading results, the U.S. Commodity Futures Trading Commission (CFTC) announced on September 29, 2015.
The CFTC issued an order detailing that Cohen, and her company Pure Reason, LLC, will jointly pay a $140,000 civil monetary penalty. The charges stem from false statements Cohen made to CFTC staff on October 22, 2014, while testifying under oath. According to the order, Cohen falsely claimed she was authorized to and had traded an account she had no authority over.
The investigation also revealed that between March 2012 and January 2013, Pure Reason, a registered Commodity Trading Advisor, advertised profitable trading results generated by its software. These results were based on hypothetical trades, and the company failed to disclose this to potential customers through its website and webinars. Cohen, as a principal, part owner, and officer of Pure Reason, was found to have knowingly induced these non-disclosures and is therefore liable.
In addition to the financial penalty, the CFTC order mandates that Cohen and Pure Reason cease and desist from violating the Commodity Exchange Act (CEA) and related regulations. Furthermore, Cohen is prohibited from applying for or claiming exemption from registration with the CFTC, or engaging in any activity requiring such registration, for a period of one year.
The case was led by CFTC Division of Enforcement staff members Mark Picard, Judith M. Slowly, Elizabeth C. Brennan, Steven Ringer, Lenel Hickson, Jr., and Manal M. Sultan.
Source: CFTC.gov
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