Office of Proceedings 

COREY LUSTER, 

Complainant, 

v. 

U.S. COMMODITY FUTURES TRADING COMMISSION 

Three Lafayette Centre 

1155 21st Street, NW, Washington, DC 20581 

www. cftc. gov 

* 

* 

* 

* 

* CFTC Docket No. 12-R026 

* 

LINDA FAYE HARRIS, * 

CDR FOREX INVESTMENTS LLC, and * 

CDR GLOBAL HOLDINGS LLC, * 

Respondents. * 

* 

DEFAULT ORDER 

Introduction 

Respondents Linda Faye Harris, CDR Forex Investments LLC, and CDR Global 

Holdings LLC have failed to file answers to Corey Luster's reparations complaint, and thus are 

in default. Pursuant to CFTC rule 12.22(a), respondents' defaults constitute: admissions of the 

allegations in the complaint, waivers of any affirmative defenses, waivers of any decisional 

procedure afforded by the Commission's reparations rules, and waivers of the opportunity to 

object to taking official notice of certain U.S. District Court, CFTC and NF A orders. 

Thus, as explained in more detail below, it has been concluded that Linda Faye Harris 

("Harris"), and CDR Forex Investments LLC ("CDR Forex") and CDR Global Holdings LLC 

("CDR Global") defrauded Corey Luster ("Luster") in violation of the Commodity Exchange 

Act, and that these violations proximately caused $3,250 in damages. Accordingly, Harris, CDH 

Forex and CDH Global have been found jointly liable to Luster for reparations totaling $3,250, 

plus pre-judgment and post-judgment interest, and $125 in costs for the filing fee. 

Findings of Fact 

1. CDH Forex Investments, LLC ("CDH Forex"), a Texas limited liability company, 

became registered with the Commission as a commodity pool operator on September 17, 2008, 

and as a commodity trading advisor on May 13, 2008. CDR Global Holdings, LLC ("CDR 
Global"), a Texas limited liability company, became registered as a commodity trading advisor 

on December 1, 2009. 1 

Linda Faye Harris ("Harris"), whose last known address was in Lewisville, Texas, 

became registered as an associated person ofCDH Forex on July 1, 2008. Harris was the sole 

listed principal of, and owned a 10% or more financial interest in, CDH Forex, and Harris had 

the power, directly or indirectly, through agreement or otherwise, to exercise a controlling 

influence over the activities of CDH Forex. 

From November 30, 2009, until on or about August 24, 2010, Harris was a listed 

principal ofCDH Global. From December 1, 2009 until August 24, 2010, Harris was registered 

as an associated person of CDH Global. 

By CFTC Initial Decision dated December 17, 2012, Harris, CDH Forex and CDH 

Global were found to be statutorily disqualified from registration and unfit for registration, and 

their registrations were revoked. 

Harris' husband Chance Harris, who actively participated in her fraudulent scheme, was 

never registered with the CFTC. 

2. Corey Luster, a resident of Denton, Texas and a newly minted investment advisor, 

opened a managed CDH account in April2009. Luster also received from the Harris's finder's 

fees totaling $900 in 2009 for referring new customers, including his dad. Luster deposited a 

total of$3,250: $2,500 on April3, $500 on July 22, and $250 on September 30,2009. From 

April2009 to June 2010, respondents' generated fictitious monthly account statements that 

falsely reported consistent profits steadily increasing the account value to $14,180 by the end of 

June 2010. Respondents never returned any funds to Luster. 

3. On July 15, 2010, the National Futures Association confronted Harris with 

information gathered in the course of its annual audit which indicated that the CDH disclosure 

documents appeared to be wholly fictitious. Most significantly, the CDH disclosure documents 

falsely claimed exceptionally high rates of return and grossly exaggerated the number of 

customer accounts and the amount of funds under management. 

On July 19, 2010, the NFA issued a Notice of Member Responsibility Action against 

Harris, CDH Forex and CDH Global which ordered Harris, CDH Forex and CDH Global to 

cease doing business. Luster received a copy of this Notice, which he would attach to his 

reparations complaint form, filed on April24, 2012. 

4. On October 25, 2011, the Commission filed a federal civil injunctive action in the 

United States District Comi of the Northern District of Texas against Linda and Chance Harris, 

and CDH Forex and CDH Global. CFTC v. CDH Forex Investments, LLC et al., Case No. 3:11-

cv-02862 F (N.D. TX). The Commission alleged, inter alia, that from August 2008 through July 

2010, the defendants had fraudulently solicited and accepted funds from the general public to 

trade pooled investments and managed accounts in off-exchange forex. As a result of the 

1 CDH Forex and CDH Global are collectively referred to as "CDH." 

2 
defendants' fraudulent solicitation, individuals invested over $2.2 million, out of which the 

defendants generated substantial trading losses and misappropriated about $353,757 to pay rent 

on the Harris' family home, to make payments on a leased BMW, and to pay credit card bills. 

Defendants also were charged with misrepresenting the profitability of their trading programs in 

their promotional material and issuing false account statements to investors in the pooled account 

in order to perpetuate the fraud. The CFTC complaint also charged Linda Harris with providing 

false, fictitious, or fraudulent statements to the NF A, including falsified trading account 

statements and falsified bank statements, in order to hide the ongoing fraud from the NF A. 

Following a hearing held on June 12, 2012, the Honorable Judge Royal Ferguson entered 

an Order for Entry of Default Judgment, Permanent Injunction, Civil Penalties and Other 

Equitable ReliefPursuant to Federal Rule of Civil Procedure 55(b)(2). The Court found, inter 

alia, that Harris had fraudulently solicited at least $2.2 million from customers out of which total 

trading losses and misappropriated funds equaled at least $1,361,897, and made material false 

statements to pool participants. The Comi also found that Harris had provided false, fictitious, or 

fraudulent statements to the NF A, including falsified trading account statements and falsified 

bank statements, to hide the ongoing fraud from the NF A. 

The Court further found that by engaging in this conduct, Linda and Chance Harris had 

violated Sections 4b(a)(2)(A)-(C) and 9(a)(4) of the Act, and that such violations had occurred 

within the course and scope of Linda and Chance Harris's employment with CDH Forex and 

CDH Global. Accordingly, the Court: one, concluded that CDH Forex and CDH Global were 

liable for Linda and Chance Harris' violations of Act pursuant to Section 2(a)(1)(B) of the Act, 

and Commission rule 1.2; and two, permanently enjoined Linda and Chance Hmris, and CDH 

Forex and CDH Global from directly or indirectly committing any further fraud in violation of 

the Act. The Court also ordered the defendants to pay a restitution award of$1,361,897 and a 

civil monetary penalty of $4,085,691. A copy of the Court's order is attached to Luster's copy of 

this default order. 

Conclusions and Award 

The weight of evidence supports the conclusion: one, that Linda Faye Harris defrauded 

Corey Luster by misrepresenting CDR's past trading performance, by generating account 

statements that falsely reported consistent trading profits, and by converting Luster's deposits 

which totaled $3,250, in violation of Sections 4b(a)(2)(a)-(c) and 4o(l) of the Commodity 

Exchange Act; two, that these violations proximately caused $3,250 in damages;2 and three, 

that CDH Forex Investments LLC and CDH Global Holdings LLC are liable for Linda Harris' 

violations pursuant to Section 2(a)(l)(B) of the Act and Commission rule 1.2. 

Accordingly, Linda Faye Harris, CDH Forex Investments LLC, and CDH Global 

Holdings LLC are ORDERED to pay to Corey Luster reparations totaling $3,250, plus 

prejudgment and post-judgment interest on that amount at 0.14%, compounded annually from 

2 Luster is entitled to recover his actual out-of-pocket losses, based on his deposits which totaled $3,250. However, 

Luster is not entitled to recover the additional $10,930 in reported profits, because the weight of the evidence 

supports the conclusion that these profits reported by respondents were fictitious. 

3 
April3, 2009, to the date of payment, plus $125 in costs for the filing fee. Liability is joint and 

several. 

Any motion by respondents to vacate this default order must meet the appropriate 

standards set out in CFTC rule 12.23. 

Dated January 14, 2013. 

pf4l:::t (/ ~ Judgment Officer 

4