Pfafftown, North Carolina resident John Poole, also known as James Drew, has been slapped with a hefty penalty and trading ban following a federal court order issued July 25, 2006. U.S. District Judge William L. Osteen for the Middle District of North Carolina entered a Default Judgment against Poole, finding him in violation of the Commodity Exchange Act.
The CFTC brought charges against Poole, alleging he fraudulently promoted a commodity trading system through his website, www.optionstoriches.com, operating under the name Mac Systems. The court order prohibits Poole from engaging in any future business involving commodity futures and options trading.
According to the CFTC complaint, beginning around April 2003, Poole made false claims on his website promising substantial profits and accurate market predictions to those who purchased his trading system. The website boasted investors could “make a ton of cash” using a “proven and GUARANTEED system,” claims the court found to be baseless.
Investigators found no evidence that any client utilizing Poole’s system actually profited or accurately predicted commodity option price movements. Furthermore, the website featured fabricated client testimonials designed to mislead potential customers about the system’s success.
As a result of the judgment, Poole is required to pay a $240,000 civil monetary penalty. The case is CFTC v. John Poole a/k/a James Drew, Case No. 1:05CV00859 (M.D.N.C.). Charles D. Marvine and Richard Glaser of the CFTC’s Division of Enforcement led the investigation.
Source: CFTC.gov
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