Release: #3900-96

For Release: April 5, 1996

FLORIDA COURT ISSUES EX PARTE ASSET FREEZE ORDER IN CFTC ANTI-FRAUD
    ACTION AGAINST MICHAEL INDIHAR, ROBERT HOFFMAN, COMPUTER WAREHOUSE INC.,
    AND AUTOMATED TRADING SYSTEMS -- ALL OF FLORIDA

---

Court's Action Stems from a CFTC Civil Action Charging the Defendants
    with Defrauding Commodity Pool Customers, and Converting Customer Funds to
    Personal Use, Among Other Violations

---

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
    today that on April 2, 1996, the Honorable Jose A. Gonzalez, Jr. of the
    U.S. District Court for the Southern District of Florida entered an ex
    parte asset freeze order against Michael Indihar, of Jupiter, Florida;
    Robert P. Hoffman, of Wellington, Fla.; and Computer Warehouse Inc. (CWI)
    and Automated Trading Systems, Inc. (ATS) -- both Florida corporations
    based in Jupiter. Indihar is president of CWI and ATS, and Hoffman is vice
    president of both firms; none of the defendants has ever been registered
    with the CFTC in any capacity.

In addition to freezing the defendants' assets, the court order also
    prohibits the defendants from destroying books and records and from denying
    CFTC representatives access to such records for the Commission's ongoing
    investigation.

Defendants Are Charged with Defrauding Commodity Futures Investors,
    and Converting Customer Funds to Their Personal Use

The court's action stems from a civil injunctive complaint, filed on
    April 1, 1996, charging, among other things, that -- from at least July
    1995 to the present -- the defendants have been engaged in the fraudulent
    solicitation and the acceptance of customer funds for investment in
    commodity futures contracts via a commodity pool that they allegedly
    operate, in violation of the anti-fraud and registration provisions of the
    Commodity Exchange Act and CFTC regulations.

The defendants, the CFTC complaint alleges, through their unlawful
    activity caused known losses of at least $17,000 to at least three
    customers, who were solicited and provided funds to the defendants
    purportedly to trade commodity futures contracts. The solicitations,
    according to the complaint, were made in person, by holding demonstrations
    and meetings, and by telephone calls.

The defendants allegedly cheated and defrauded customers by:

- making false, deceptive, or misleading representations in soliciting
      investors to invest in the pool, such as stating that customers would not
      lose their principle when, in fact, they knew those representations were
      untrue, and misrepresenting to customers the performance and track record
      of the defendants' commodity futures trading;
- making false, misleading statements, or omitting material facts,
      concerning the likelihood of profit and the risk of loss associated with
      trading commodity futures, including that the defendants were "making
      lots of money" in the commodities market and that they had a system for
      trading that "would predict winning trades," was "foolproof", and
      "guaranteed profits";
- deceiving customers that money accepted would be used to buy
      commodity futures, when, in fact, some of the customers' funds were
      converted by defendants' to pay for personal and unrelated business
      expenses;
- deceiving customers as to the status of their accounts through the
      distribution of false account statements; and
- acting and operating as a futures commission merchant (FCM) and/or
      commodity salespersons without being registered with the CFTC as
      such.

Furthermore, the defendants allegedly converted customer funds and
    commingled customer commodity investment funds with the defendants'
    personal funds. The defendants also failed to file required reports,
    disclosure documents and other records with the CFTC.

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 prohibiting the defendants from
    violating the federal commodity laws as charged, in addition to other
    remedial relief, including:

- an accounting, and disgorgement and restitution to customers of
      ill-gotten gains, and
- a civil monetary penalty against each defendant of $100,000, or
      triple the monetary gains to the defendants, whichever is greater, for
      each violation.

The CFTC, in its investigation of this case, received substantial
    enforcement assistance from the Economic Crimes Unit of the Palm Beach
    County, Florida, State's Attorney Office; the Detective Bureau of the
    Jupiter, Florida, Police Department; and the Palm Beach County Sheriff's
    Office. On April 3rd, Florida state authorities placed Indihar under
    arrest, executed a search warrant on the premises of CWI and ATSI, and
    seized evidence relating to the misconduct alleged in the CFTC's complaint,
    at the same time the Commission was serving its complaint and freeze
    order.

---