Release: 4109-98 (Civ-96-2185)

For Release: February 18, 1998

ARIZONA COURT ENTERS ORDER OF PERMANENT INJUNCTION AND
    RESTITUTION IN CFTC AND STATE OF ARIZONA ENFORCEMENT ACTION AGAINST UNITED
    METALS TRADING CORP., WESTERN NATIONAL TRADING, AND ANTHONY F. ANDREWS, OF
    SCOTTSDALE, ARIZONA, AND MARVIN C. PENDERGRAFT, OF PHOENIX, ARIZONA,

Court Order Stems from a Ten-Count Anti-Fraud
    Enforcement Action Brought

Against the Defendants in 1996 by the CFTC and the
    Arizona Corporation Commission

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
    today that on January 22, 1998, the Honorable Roger G. Strand of the U.S.
    District Court for the District of Arizona entered a consent order of
    permanent injunction and restitution against United Metals Trading Corp.
    (UMTC) and Western National Trading (WNT), both of Scottsdale,
    Arizona, Anthony F. Andrews, also of Scottsdale, and Marvin C.
    Pendergraft of Phoenix, Arizona.

The order was entered to settle a ten-count injunctive complaint filed
    by the CFTC and the Arizona Corporation Commission on September 23, 1996,
    and an amended complaint filed on November 27, 1996, against UMTC, WNT,
    Andrews, and Pendergraft, charging that the defendants' activities, among
    other things, defrauded commodity investors in violation of the anti-fraud
    provisions of the Commodity Exchange Act (CEA) and the Arizona Securities
    Act (See CFTC News Release #3944-96, September 25, 1996). UMTC was alleged
    to be a commodity pool operator controlled by Andrews and Pendergraft.

The complaint charged that, from February 1992 through September 1996,
    the defendants cheated and defrauded approximately 60 commodity pool
    investors located throughout the United States, from whom they solicited
    more than $1,000,000, by falsely representing to investors and potential
    investors that they were operating a highly profitable commodity futures
    pool.

The complaint also alleged that defendants misappropriated investors'
    money for their own use, invested only a small portion of the funds in
    commodity futures, issued false reports to investors showing profits from
    commodity trading when, in fact, virtually no trading was occurring, failed
    to register with the CFTC, and violated Arizona law by selling unregistered
    securities and committing fraud in connection therewith.

Order Effectively Bars Defendants from the U.S. Futures Industry and
    Orders Restitution of Approximately $602,000

Under the terms of the consent order, defendants have agreed, among
    other things, to be permanently enjoined from committing further violations
    of sections 4b(a)(i), (ii) and (iii), 4d(1) and (2), 4m(1), and
    4o(1) of the CEA, CFTC regulations 4.20(a)-(c) and 4.21, and
    provisions of the Arizona Securities Act (ASA) and to make restitution in
    the amount of $602,088.05 for the benefit of customers. Furthermore, the
    consent order prohibits the defendants from ever seeking registration with
    the CFTC in any capacity or engaging in conduct which requires registration
    under the CEA or the ASA. The order also prohibits the defendants from
    trading on or subject to the rules of any contract market, either for their
    own accounts or for the account of any other person, interest, or entity,
    and requires that all contract markets permanently refuse the defendants
    any trading privileges.

The Arizona Corporation Commission and the Arizona Attorney General have
    agreed to administer the settlement. The CFTC gratefully acknowledges their
    assistance in the investigation and litigation of this case.