FT. LAUDERDALE, FL – May 30, 2007 – Steven Labell, a resident of the Fort Lauderdale area, has been charged with fraud by the U.S. Commodity Futures Trading Commission (CFTC), resulting in a permanent injunction and significant financial penalties. The case, originating from a complaint filed on June 21, 2004, alleges Labell fraudulently solicited over $2.8 million from at least 241 customers through his companies, Global Atlantic Management LLC, doing business as Worldwide Forex, Inc. and Worldwide Commodity Corp. (collectively WWF).
According to the CFTC, Labell, who held various leadership positions within WWF including vice-president, president, and director, knowingly made false and misleading representations to induce customers into purchasing foreign currency (forex) futures contracts. These fraudulent solicitations were conducted via radio advertisements and through telephone calls made by WWF brokers. The CFTC found that nearly all of WWF’s customers lost substantially all of their investments.
The order details that Labell actively participated in the day-to-day operations of WWF and personally prepared misleading sales scripts used by brokers. These scripts misrepresented the potential for profits and downplayed the substantial risks associated with forex trading, urging customers to invest immediately to avoid missing out on supposed opportunities. WWF’s consistently poor trading performance for its customers was also concealed.
The court order holds both Labell and WWF jointly and severally liable for restitution totaling $4.6 million ($3.1 million from WWF and $1.5 million from Labell). Additionally, Labell faces civil monetary penalties of $126,000, while WWF is penalized $3.1 million. The order permanently prohibits Labell and WWF from engaging in any commodity-related activity, either directly or indirectly.
This is not the first action against Labell by the CFTC. A previous case in September 20, 2006, resulted in over $14.7 million in monetary penalties and sanctions imposed by the U.S. District Court for the Eastern District of Pennsylvania.
The case was led by CFTC staff members David Acevedo, Judith M. Slowly, Michael R. Berlowitz, Stephen J. Obie, Lenel Hickson, Jr., Lacey Dingman, and Richard B. Wagner.
Source: CFTC.gov
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