Release: #4088-97 (CFTC Docket #98-2)

For Release: December 18, 1997CFTC FILES ADMINISTRATIVE COMPLAINT AGAINST REIFLER TRADING CORP.,
    LIBERTY FUTURES, INC., AND THREE INDIVIDUALS ALLEGING UNREGISTERED
    "CORRESPONDENT" RELATIONSHIPS, AMONG OTHER VIOLATIONS OF FEDERAL COMMODITY
    LAW AND CFTC REGULATIONS
    WASHINGTON -- The Commodity Futures Trading Commission (CFTC) today
    announced the filing of a four-count administrative complaint on December
    17, 1997, against Reifler Trading Corporation and its president and
    sole shareholder, Bradley C. Reifler, both of New York, New York;
    Liberty Futures, Inc., and its President Hany Labib, both of
    Burbank, California; and an unregistered individual Syed Hussain of
    Canoga Park, California. Reifler Trading is registered with the Commission
    as an Introducing Broker (IB). Liberty Futures (known as Noble Wealth
    Investments, Ltd. until August 25, 1994) has been registered as an IB since
    September 23, 1993. Both Bradley Reifler and Hany Labib are currently
    registered with the Commission as Associated Persons (APs).

The CFTC complaint alleges that from October 1993 to December 1994,
    Liberty operated as a de facto branch office of Reifler Trading
    through a "Correspondent Agreement" entered into by Reifler and Labib, even
    though Liberty was never listed as a branch office by Reifler Trading. The
    complaint alleges that since Labib and Hussain solicited accounts on behalf
    of Reifler Trading -- accounts that were introduced to Futures Commission
    Merchants (FCMs) with whom Reifler Trading had a clearing agreement --
    Reifler Trading was required to ensure that Labib and Hussain were
    registered as Reifler Trading APs. However, according to the complaint,
    Reifler Trading failed to do so. Moreover, the complaint alleges that
    Reifler Trading, Bradley Reifler, and Liberty Futures failed to ensure that
    Liberty held itself out to the public as a branch office of Reifler
    Trading.

Furthermore, during the October 1993 to December 1994 time period, the
    CFTC alleges that Liberty Futures employed unregistered individuals to
    solicit accounts on their behalf, failed to open accounts with a carrying
    FCM, accepted checks from customers made payable to FCMs without the
    permission of those FCMs, and engaged in recordkeeping violations. The
    complaint alleges that Liberty Futures and Labib are liable for these
    violations, and that Reifler Trading is liable derivatively for these
    violations as a principal of Liberty Futures. Finally, the CFTC alleges
    that Reifler Trading failed to supervise diligently both Liberty Futures
    and Labib.

A public hearing will be held to determine whether the allegations
    against the respondents are true and, if so, to determine what sanctions,
    if any, should be imposed. Possible CFTC sanctions include cease and desist
    orders prohibiting the respondents from violating provisions of federal
    commodity law and CFTC regulations charged, revocations or suspensions of
    respondents' registrations, trading prohibitions, and civil monetary
    penalties of up to $100,000 for each violation of the CEA and CFTC
    regulations.