Release: #4236-99 (92-6832-CIV-UUB):

For Release: February 4, 1999

Florida District Court Orders
    Over $7.96 Million in Disgorgement from

Marc Stephen Wuensch for
    Commodity Options Fraud

WASHINGTON -- The Commodity Futures Trading
    Commission (CFTC) announced today that on January 22, 1999, U.S. District
    Court Judge Ursula Ungaro-Benages of the Southern District of Florida
    entered a final order of disgorgement of $7,961,295 against Marc Stephen
    Wuensch of Pembroke Pines, Florida, in CFTC v. Trinity Financial
    Group, Inc. et al. Wuensch was formerly the president of Carrington
    Financial Corp. Inc. and sales manager of Trinity Financial Group,
    Inc., both of Aventura, Florida.

Previously, in a September 29, 1997 order, after a
    17-day trial, the court found Carrington and Wuensch liable for "systematic
    and willful" violations of the antifraud and supervisory provisions of the
    Commodity Exchange Act (CEA) and CFTC regulations. Among other things, the
    court found that "Carrington and Wuensch failed to establish and maintain
    meaningful procedures for deterring and detecting fraud by their employees,
    that Wuensch knew of specific incidents of misconduct and failed to take
    reasonable steps to correct the problems," and that "the improper sales
    practices . . . continued since the filing of this action with Wuensch's
    approval and active participation." The court made detailed findings of
    numerous instances in which associated persons at Carrington violated the
    CEA's antifraud provisions by making misrepresentations and/or omitting
    material facts while soliciting customers to purchase options on commodity
    futures contracts concerning, among other things, the profit potential of
    commodity options while minimizing the risks involved. (See CFTC News
    Release #4061-97, October 2, 1997.)

In the September 29, 1997 order, the court also
    permanently enjoined Wuensch and Carrington from violating the CEA's
    antifraud and supervisory provisions, and permanently enjoined the
    remaining defendant, A. Francis Sidoti of Montauk, New York, from
    violating the registration provisions of the CEA.

Further, the court ordered defendants to disgorge
    all profits that Wuensch and Sidoti received from Carrington and Trinity;
    prohibited the transfer of assets; and ordered Carrington, Wuensch, and
    Sidoti to transfer all books and records to an equity receiver, among other
    relief. The court appointed Frank P. Scruggs, Esq. of the law firm of
    Greenberg, Traurig, Hoffman, Lipoff, Rosen & Quentel, P.A. as equity
    receiver (Tel: [954] 765-0500). Immediately after his appointment, the
    receiver seized control of Carrington and terminated its operations.
    Subsequently, Commission staff worked with the receiver in the preparation
    of a report and recommendation for disgorgement to the court.

-- More --

�

- 2 -

�

In its January 22, 1999, order, the court stated
    that the Commission had proven "systematic and pervasive fraudulent
    conduct" and noted that "Wuensch encouraged, condoned, and participated in
    a pervasive fraud." The court adopted, in part, the receiver's Report
    and Recommendation, and ordered Wuensch to disgorge $7,961,295, which
    represents the income he received from Trinity and Carrington from 1991
    through September 1997. The court further ordered Wuensch to post a surety
    bond for the entire amount of the disgorgement ordered, and required him to
    make a complete and accurate asset disclosure to the receiver within 20
    days.

# # #