**Release:
    ����������������
    #4295-99 (#4241-99, CFTC Docket No. 99-7)
     For release:�������� July 29,
    1999**

CFTC ACCEPTS SETTLEMENT OFFERS OF KEVIN JACKAM, MICHAEL THOMAS AND
    NEW MILLENIUM PROMOTIONS IN CASE INVOLVING THE FRAUDULENT SOLICITATION OF
    CUSTOMERS

CFTC Finds That Jackam Committed Fraud In Soliciting Customers To
    Trade Options On Commodity Futures Contracts And Failed To Supervise, and
    That Thomas And New Millenium Failed To Supervise And Acted In An
    Unregistered Capacity While Operating An Introducing Broker

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
    today that on July 29, 1999, it issued orders accepting offers of
    settlement from Kevin Jackam (Jackam), Michael Thomas
    (Thomas) and New Millenium Promotions (NMP), all located in the
    Atlanta, Georgia area, in connection with a complaint filed by the CFTC on
    March 4, 1999 (see CFTC News Release #4179-98, August 17, 1998). As the
    CFTC found, this case involved, among others things, the fraudulent
    solicitation of customers over the Internet to trade options on commodity
    futures.

The CFTC issued an order as to Jackam, finding that Jackam, as a
    principal, twenty percent owner, and compliance officer of a registered
    introducing broker (IB), violated anti-fraud provisions of the Commodity
    Exchange Act (CEA) and CFTC regulations, specifically section 4c(b) and
    regulation 33.10, and that Jackam aided and abetted, and as a controlling
    person of the IB was liable for, the IB's fraudulent solicitation of
    customers.

Specifically, the CFTC order finds that Jackam coordinated the
    development of, and reviewed and approved the content of, all of the
    IB's promotional materials, including radio and Internet advertising
    and written "Special Reports," which misrepresented, among other things,
    the likelihood of profit from, and the risk of loss involved in, trading
    commodity options. The order also finds that Jackam misled customers
    concerning the amount of commissions charged by the IB for options trading.
    The order further finds that Jackam failed to supervise diligently the
    agents and employees of the IB who prepared and disseminated Internet
    advertising on behalf of the IB.

The CFTC issued a separate order as to Thomas and NMP, finding that NMP
    operated as an introducing broker without being registered, by soliciting
    prospective customers over the Internet on behalf of the IB in return for a
    fee, in violation of section 4d(1) of the CEA, and that Thomas, as sole
    employee of and the person responsible at NMP for generating prospective
    customers for the IB, acted as an associated person (AP) of NMP without
    being registered, in violation of section 4k(1) of the CEA and regulation
    3.12(a)

The CFTC order also finds that Thomas and NMP contracted with another
    respondent, Forrest Dayton, Jr., to disseminate the Internet advertisements
    on behalf of the IB and that, despite being responsible for supervising
    Dayton, Thomas and NMP failed to implement or follow a program of
    supervision. This resulted in Dayton sending Internet advertisements that
    contained misleading language to prospective customers of the IB. NMP and
    Thomas thereby failed to supervise diligently the activities of Dayton. On
    May 26, 1999, a default judgment was issued against Dayton, finding that he
    acted as an AP of NMP without being registered, in violation of section
    4k(1) of the CEA and regulation 3.12(a), and ordering Dayton to cease and
    desist from violating those provisions and to pay a civil monetary penalty
    of $273,000.

Jackam, without admitting or denying the findings, consented to the
    entry of an order:

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    directing him to cease and desist from further violations as charged;

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    prohibiting him from trading on or subject to the rules of any contract
    market;

��� --������� imposing
    a $200,000 restitution award, to be paid pursuant to a five-year payment
    plan; and --requiring him to comply with certain undertakings, including
    (1) cooperating with the Division in this proceeding; and (2) never
    applying for registration or claiming exemption from registration in any
    capacity.

Thomas and NMP, without admitting or denying the findings, consented to
    the entry of an order:

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    directing them to cease and desist from further violations as charged;
    and

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    requiring them to comply with certain undertakings, including never
    applying for registration or claiming exemption from registration in any
    capacity.

In the orders, the CFTC notes that orders of immediate restitution and
    civil monetary penalties against Jackam, Thomas and New Millenium would be
    appropriate, but does not impose them based upon their demonstrated
    financial condition.

The case continues as to the other respondents named in the CFTC
    complaint.

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