Release: 4079-97 (96-CV-10421-BC)

For Release: November 12, 1997MICHIGAN COURT ISSUES PERMANENT INJUNCTION FINDING THAT

DANIEL M. O'SHAUGHNESSEY DEFRAUDED POOL CUSTOMERS OF OVER
    $435,000Consent Order Permanently Bars O'Shaughnessey From the Futures Industry
    and Orders O'Shaughnessey to Pay Restitution to Defrauded Customers
    WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
    today that the Honorable Robert H. Cleland of the U.S. District Court for
    the Eastern District of Michigan entered a consent order of permanent
    injunction against Daniel M. O'Shaughnessey, of Midland, Michigan;
    Glory Fund�I, Inc. (GFI), a Michigan corporation; and Glory
    Fund, L.L.C. (GFLLC), a Michigan limited liability company, all
    of whom were charged by the CFTC with defrauding commodity pool customers
    in an anti-fraud enforcement action filed on November 21, 1996 (CFTC News
    Release 3970-96, November 26, 1996).

The court's consent order follows a September�25, 1997, order in
    which Judge Cleland ruled that O'Shaughnessey, GFI, and GFLLC defrauded
    customers during 1996 in connection with their solicitation and operation
    of a commodity pool created by O'Shaughnessey and known as the Glory
    Fund.

In its September 25, 1997, order, the court determined that during the
    spring of 1996, O'Shaughnessey commenced "a wide-ranging course of
    fraudulent and illegal conduct" in which he "misappropriated and commingled
    customer funds, issued monthly statements to pool members that falsely
    represented increasing account values when his commodity trading was
    consistently unprofitable, and made misrepresentations and omissions of
    material fact in soliciting new investors." According to the consent order
    and the September 25, 1997, order, by mid-November 1996, when the CFTC
    filed its complaint, O'Shaughnessey had solicited and received $435,886.53
    from 26 investors in Michigan and California, but had lost or
    misappropriated most of those funds. The court found that these actions
    constituted violations of the Commodity Exchange Act (CEA) and the CFTC's
    regulations. The court also granted generally the relief sought by the CFTC
    against the defendants.

In the consent order entered on November 5, 1997, O'Shaughnessey has
    agreed to be permanently enjoined from committing further violations of
    federal commodity laws, soliciting or trading commodity futures or options
    on behalf of others, and acting in any capacity requiring registration
    under the CEA. The consent order also prohibits O'Shaughnessey from trading
    for his personal account for a period of 10 years and bars O'Shaughnessey
    from ever seeking registration with the CFTC in any capacity. In addition,
    the consent order requires O'Shaughnessey to make full restitution through
    a payment plan to all investors whose funds the defendants received or
    disposed of in violation of the CEA and CFTC regulations.

GFI was registered with the CFTC as a commodity pool operator and
    commodity trading advisor, and O'Shaughnessey was registered as an
    associated person of GFI. GFLLC was the investment entity used by GFI, and
    has never been registered with the CFTC in any capacity.