Walnut Creek, CA – August 9, 2006 – The U.S. Commodity Futures Trading Commission (CFTC) has filed a complaint against Gilbert Philip Castillo Jr., and his company, Castle Enterprise Corporation, alleging fraudulent solicitation of the public as unregistered commodity trading advisors. The case was filed in the U.S. District Court for the Northern District of California and is assigned to Judge Thelton E. Henderson.
According to the CFTC, from at least February 1, 1999, through mid-2005, Castillo and Castle Enterprise marketed commodity advisory services related to S&P 500 commodity futures and options through the websites WallStreetWar.com, CastilloResearch.com, and Never-Lose.com. The CFTC alleges that Castillo, founder and President of Castle Enterprise, failed to register as a commodity trading advisor, violating the Commodity Exchange Act (CEA).
The complaint details that Castillo and Castle Enterprise fraudulently misrepresented Castillo’s trading successes, the profitability and accuracy of their advisory services, and the validity of performance results displayed on their websites. For example, the “Wall Street War Advisory Service” was advertised as “proven to be the most accurate and profitable advisory available,” boasting a 90-96% profitability rate and returns ranging from 302% to 447% over six years.
The CFTC alleges these claims deceived customers into purchasing trading systems and courses, resulting in over $800,000 in fees. The complaint further states that many of the offered advisory services never functioned as advertised, leaving clients abandoned after purchase and without receiving the promised value, ultimately losing their investment.
The CFTC is seeking an injunction against further violations of the CEA, disgorgement of ill-gotten gains, restitution for defrauded customers, civil monetary penalties, and other related relief. The case is being pursued by Timothy J. Mulreany, David Reed, Mary Kaminski, Paul Hayeck, and Joan Manley of the CFTC’s Division of Enforcement.
Source: CFTC.gov
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