CFTC News Release 4382-00

For Release: March 20, 2000

**CFTC CHARGES IMC COMMON ENTERPRISE AND THREE INDIVIDUALS IN $18    MILLION FRAUDULENT PRECIOUS METALS SCHEME**

**Court Freezes Defendants' Assets and Appoints Receiver to Take    Control of Business**

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced    today that on March 13, 2000, it filed     an injunctive action in the U.S. District Court for the Western    District of North Carolina against **IBS, Inc.,** a North Carolina    Corporation; **IMC Trading, Inc.**, a North Carolina Corporation; **IMC    Trading, Inc.**, a Nevada Corporation; **IMC Trading, Inc.**, an    Arizona Corporation; **Joe Miller Company d/b/a IMC Trading**, a    California Corporation; **Mazuma Trading Group, Inc. d/b/a Pinpoint    Marketing, Ltd.**, a Florida Corporation (collectively the IMC Common    Enterprise); and three individuals -- **Alan Stein**, **Joseph    Finateri** and **Michael Temple**. The CFTC complaint charges these    entities and individuals with fraudulently telemarketing illegal futures    contracts. The Commission estimates that the scheme took in nearly $18    million during an approximately four-year period, and in one two-year    period, received at least $7.7 million from at least 375 customers    nationwide.

In addition, the complaint charges that the IMC Common Enterprise    transferred substantial funds obtained through fraud to the following    parties, named in the complaint as relief defendants: **International    Bullion Services, Inc.**, a Bahamas Corporation; **Kimberlynn Creek    Ranch, Inc.**, a California Corporation**;****Kingsfield Racing,    Inc.**, a Nevada Corporation**;****F. X. & B, L.L.C.**, a    Nevada Corporation**;****A. J. S. Enterprises, Inc.**, a Nevada    Corporation**; Samuel Kingsfield;** and **Pamela Kingsfield**.

On March 13, 2000, the court entered an ***ex parte***    restraining order which, among other things, freezes the defendants�    assets and appoints a receiver to take control of the IMC Common    Enterprise.

William Rainer, Chairman of the CFTC, commented:

*"This case demonstrates how partnerships with other law enforcement      agencies present the most effective way of cracking down on investment      schemes that operate across state and international jurisdictional lines.      Members of the public should protect themselves by taking a close look at      firms that tout a quick buck with little risk, especially firms that      claim to use unfamiliar overseas firms to finance their investments and      store precious metals and other commodities on their behalf."*

**CFTC Charges Defendants with Fraudulently Telemarketing Customers And    Offering Illegal Futures Contracts**

Specifically, the CFTC complaint alleges that under the IMC Common    Enterprise�s program, a customer pays for a portion of the commodity    (usually 20 percent) in cash and that International Bullion Services, Inc.,    or another financing firm, allegedly loans the customer the balance of the    purchase price of the commodity. The financing firm then purportedly    purchases and holds the commodities on behalf of the IMC Common Enterprise    customers, according to the complaint. When decreases in the price of a    commodity or accumulating credit and storage fees cause a customer�s    equity to drop below a specified level, the customer must pay additional    money to return his or her equity to a specified level, the complaint    alleges. IMC Common Enterprise telemarketers claim they will monitor the    market and instruct customers when they should liquidate their accounts for    a profit, according to the complaint. It is only after customers send their    funds to the IMC Common Enterprise, the complaint alleges, that customers    receive account opening forms and documents purporting to disclose risks    inherent in the investment scheme.

The CFTC complaint charges that the IMC Common Enterprise and defendants    Alan Stein, Joseph Finateri, and Michael Temple violated section 4(a) of    the *Commodity Exchange Act (CEA)* by selling illegal, off-exchange    futures contracts, and violated section 4b of the CEA by defrauding    customers through misrepresentations concerning the profits investors were    likely to achieve and through their failure to disclose the risks    associated with their investment program. Customers consistently lose the    bulk of the funds they invest, according to the complaint.

Finally, according to the CFTC complaint, the defendants also have    engaged in an elaborate ruse to keep their current whereabouts secret.    Defendants claim that they are currently operating out of the Bahamas,    instruct customers to call them at a Bahamas telephone number and to send    investment checks to a Bahamas address, and send account statements to    customers from the Bahamas, the complaint alleges. The complaint further    alleges that, in fact, defendants operate from a location in Charlotte,    North Carolina.

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 customers. The CFTC is further seeking    disgorgement of funds transferred to International Bullion Services, Inc.,    Kimberlynn Creek Ranch, Inc., Kingsfield Racing, Inc., F. X. & B L. L.    C., A. J. S. Enterprises, Inc., Samuel Kingsfield, and Pamela    Kingsfield.

The California Department of Justice Telephonic Sellers Unit, the    Securities Division of the Office of the Secretary of State for the State    of Nevada, the Nevada Department of Business and Industry Division of    Consumer Affairs, the Iowa Department of Justice, Securities Bureau, the    United States Customs Service, and the Federal Trade Commission also    provided valuable assistance to the CFTC during the investigation of this    matter.

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