Release:#3956-96

For Release:October 15, 1996

**CFTC ESTABLISHES SPECIAL INTERNET WEB    PAGES SEEKING WHEREABOUTS OF DEFENDANT DONALD B. CHANCEY, WHO FLED WITH    CUSTOMER FUNDS**

**The posting of Chancey's photograph on the Worldwide Web    (WWW.CFTC.GOV) Is the**

**Latest Strategy in the CFTC's Ongoing Effort to Locate Customers'    Missing Funds**

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced    that it has established pages on its Worldwide Web site to help locate **Donald B. Chancey**, a defendant in a CFTC civil injunctive action filed    in July, who disappeared after allegedly embezzling $3 million from at    least 19 investors in an unregistered commodity pool.

The Web pages depict a photograph of defendant Chancey and seek    information on Chancey's current whereabouts from members of the public.    The newly posted web pages also provide information on an upcoming    court-authorized auction of Chancey's real and personal property. Persons    who have seen Chancey can e-mail to the CFTC's Division of Enforcement a    form included on the special Chancey Web pages.

**Chancey's Photograph and Information About the Case Is**

**Posted on the Internet at www.cftc.gov**

The posting of Chancey's photograph on the Worldwide Web is the latest    strategy the CFTC has used in its ongoing effort to locate Chancey and the    missing investor funds. Upon a motion by the CFTC, the court has issued a    Writ of *Ne Exeat*, a court order directing the U.S. Marshals Service    to locate Chancey and hold him in custody until he posts a $3 million bond.    The court has also authorized the CFTC to serve Chancey with the summons    and complaint in the suit by publishing information about the suit in a    local newspaper.

The CFTC, on July 1, 1996, filed a six-count civil injunctive complaint    in the U.S. District Court for the Middle District of Georgia charging that    **Southeastern Venture Partners Group (SVPG)**, a commodity pool    operator, and **Chancey**, chief executive officer and a principal of    SVPG -- both of Valdosta, Georgia, violated the anti-fraud provisions of    the *Commodity Exchange Act (CEA)* and CFTC regulations. The complaint    alleges that defendants fraudulently solicited customers to invest in an    unregistered commodity pool; misappropriated funds by using them for    personal and unrelated business expenses; and violated numerous disclosure,    reporting, and recordkeeping requirements of Federal commodity law and CFTC    regulations. Neither of the defendants is registered with the CFTC in any    capacity. (See CFTC News Release 3929-96, August 6, 1996.)

-The CFTC complaint charges that since at least 1991,    Chancey and SVPG fraudulently solicited customers to invest in a commodity    pool, furnished customers with a promissory note guaranteeing a 23 percent    annual return, pocketed some of the funds received from pool investors, and    perpetuated their fraud by furnishing customers with phony account    statements and reports, among other alleged violations.

On the same day the complaint was filed, the court entered an ***ex    parte** order against Chancey and SVPG, freezing their assets, appointing    a receiver to take charge of the business operations and assets, and    protecting books and records.*

*In its continuing litigation against the defendants, the CFTC is    seeking preliminary and permanent civil injunctions, in addition to other    remedial relief, including restitution to investors. The complaint also    seeks a civil monetary penalty against each defendant in the amount of    $100,000, or triple the monetary gain to the defendants, whichever is    greater, for each violation.*

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