U.S. COMMODITY FUTURES TRADING COMMISSION 

Three Lafayette Centre 

Office of Proceedings 

MALCOLM LUSTER, Sr., 

Complainant, 

v. 

LINDA FAYE HARRIS, 

1155 21st Street, NW, Washington, DC 20581 

www.cftc.gov 

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CFTC Docket No. 11-R033 

CDH FOREX INVESTMENTS LLC, and 

CDH GLOBAL HOLDINGS LLC, 

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Respondents. 

DEFAULT ORDER 

Introduction 

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

Holdings LLC have failed to file answers to Malcolm Luster Sr.'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 found that Linda Faye Harris 

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

("CDH Global"), defrauded Malcolm Luster, Sr. ("Luster") in violation of the Commodity 

Exchange Act ("Act"), and that these violations proximately caused $5,400 in damages. 

Accordingly, Harris, and CDH Forex and CDH Global, have been found jointly liable to Luster 

for reparations totaling $5,400, plus pre-judgment and post-judgment interest, and $125 in costs 

for the filing fee. 

Findings of Fact 

1. CDH Forex Investments, LLC, 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. CDH Global Holdings, LLC, a Texas limited liability 

company, became registered as a commodity trading advisor on December 1, 2009. 1 

Linda Faye Harris, whose last known address was in Lewisville, Texas, became 

registered as an associated person of CDH Forex on July 1, 2008. Banis 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 pmiicipated in her fraudulent scheme, was 

never registered with the CFTC. 

2. In August 2009, Malcolm Luster, Sr., a resident of Spencer, Oklahoma opener a CDH 

managed account after meeting several times at the home of Linda and Chance Harris and at the 

urging of his son, Corey Luster, a newly minted investment advisor who had opened his own 

CDH managed account four months earlier, who had been receiving false repmis of purported 

profits from CDH, and who had received from Linda Harris finder's fees totaling $900 in 2009 

for referring new customers, including his dad. Malcolm Luster deposited a total of $5,400: 

$2,500 on August 13, $2,300 on September 11, $300 on October 21, and $300 on December 2, 

2009. From August 2009 to June 2010, respondents' generated fictitious monthly account 

statements that falsely reported consistent profits steadily increasing the account value to $9,724 

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 and CDH to cease doing business. 

Luster received a copy of this Notice, which he attached to his reparations complaint form, filed 

on September 13, 2011. 

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 eta!., Case No. 3:11-

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

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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 

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 Han·is' 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 Hanis with providing 

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

statements and falsified banlc 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 Relief Pursuant to Federal Rule of Civil Procedure 55(b )(2). The Court found, inter 

alia, that Hanis 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 Court also found that Han·is 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 of the Act had 

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

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

were liable for Linda and Chance Hanis' violations pursuant to Section 2(a)(l)(B) of the Act and 

Commission rule 1.2; and two, permanently enjoined Linda and Chance Harris, 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 Judge Ferguson'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 

Malcolm Luster, Sr. by misrepresenting CDH's past trading performance, by generating account 

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

which totaled $5,100, in violation of Sections 4b(a)(2)(a)-(c) and 4o(l) ofthe Commodity 

Exchange Act; two, that these violations proximately caused $5,100 in damages;2 and three, 

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

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

2 Luster is entitled to recover his actual out-of-pocket losses, based on his deposits which totaled $5, I 00. However, 

Luster is not entitled to recover the additional $4,324 in reported profits, because the weight of the evidence 

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

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

Holdings LLC are ORDERED to pay to Malcolm Luster, Sr. reparations totaling $5,400, plus 

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

August 13, 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. 

c~1 7/M d ~ Phi~cGuire, Judgment Officer 

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