Release:#3887-96

For Release:January 18, 1996

CFTC FILES ENFORCEMENT ACTION AGAINST MARK STEPHEN SHANER AND SHANER
    TRADING PARTNERS IN IOWA, CHARGING COMMODITY POOL FRAUD

Iowa District Court Judge Enters Ex Parte Order Freezing
    Defendants' Assets and Preserving Their Books and Records

WASHINGTON - The Commodity Futures Trading Commission (CFTC) filed a
    four-count injunctive complaint in the U.S. District Court for the Southern
    District of Iowa against Mark S. Shaner and Shaner Trading
    Partners, Inc., a commodity pool, both of Fairfield, Iowa, alleging
    that the defendants defrauded commodity pool participants. Shaner, who is
    registered as an associated person (AP), is also president of Shaner
    Trading Partners, which is a registered commodity pool operator (CPO). Both
    Shaner and Shaner Trading Partners are general partners of Shaner Fund
    Limited Partnership, a commodity pool organized in early 1994.

On January 4, 1996, U.S. District Judge Harold D. Vietor entered an ex parte restraining order freezing the assets of Shaner and
    Shaner Trading Partners, except that pool funds held in a segregated
    account by a registered futures commission merchant may be used to margin
    trades. The order also prohibits the defendants from destroying books and
    records and from denying CFTC representatives access to such records.

CFTC Alleges that the Defendants Cheated and Defrauded Commodity
    Futures Customers, Misappropriated and Converted Customer Funds

The complaint charges that the defendants cheated and committed fraud
    against commodity customers and engaged in commodity pool fraud, in
    violation of the Commodity Exchange Act (CEA), by:

misappropriating and converting commodity pool funds to pay for personal
    and business expenses and as a security for the personal obligations of
    Shaner;

violating their duty to investors; and

misrepresenting to investors that their money would be used for the
    benefit of the commodity pool.

Specifically, the complaint alleges that in April 1995, Shaner
    misappropriated more than $675,000 of funds of the Shaner Fund
    commodity pool to secure a personal loan to Shaner and his wife, Jane F.
    Shaner, at Iowa State Bank and Trust Company in Fairfield, Iowa. The pool
    funds had been placed with the bank in a certificate of deposit in the
    pool's name. The complaint further alleges that in October 1995, the
    Shaners

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defaulted on their $475,000 bank loan and used the commodity pool assets
    in the certificate of deposit to satisfy that debt and other personal and
    business obligations to the bank. Altogether, the complaint alleges, the
    bank paid itself approximately $521,000 out of commodity pool funds, and
    Shaner used $100,000 of the pool's money in July 1995 to pay for personal
    obligations.

Iowa State Bank and Trust Company and Jane F. Shaner are named in the
    CFTC's complaint as relief defendants. The CFTC seeks the imposition of a
    constructive trust on the assets of the bank and Jane Shaner that are
    traceable to the alleged fraud of Shaner and Shaner Trading.

CFTC Seeks Permanent Injunctions and Civil Monetary Fines, Among
    other Sanctions, Against the Defendants

In its continuing litigation against the defendants, the CFTC is seeking
    preliminary and permanent civil injunctions, in addition to other remedial
    relief, including an accounting, disgorgement, rescission, and restitution.
    The complaint also is seeking a civil monetary penalty against each
    defendant of $100,000, or triple the monetary gains to the defendant,
    whichever is greater, for each violation of the CEA.

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