Release: #4065-97 (95-Civ-6970)

For Release: October 21, 1997

U.S. DISTRICT COURT GRANTS SUMMARY JUDGMENT TO CFTC IN FRAUD ACTION
    AGAINST RICHARD E. MASERI OF BOCA RATON, FLA., AND PRIVATE RESEARCH,
    INC.

Maseri Found to Have Defrauded Customers of Over $550,000 In Scheme
    Involving Computer Software Trading Program; Contempt Hearing To Be
    Held

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
    today that on October 14, 1997, the U.S. District Court for the Southern
    District of Florida granted the CFTC's motion for summary judgment against
    Richard E. Maseri of Boca Raton, Florida and Private Research,
    Inc. (Private Research), a Florida corporation, ruling that the CFTC is
    entitled to the permanent injunction it sought in its complaint filed
    October 16, 1995. (CFTC News Release #3877-95, November 3, 1995.)

Chief Judge Edward B. Davis also granted the CFTC's motion for default
    judgment against Florida corporations AIM International, Inc. (AIM)
    and Bullseye, Inc. (Bullseye), that, along with Maseri, were charged
    in the same complaint with cheating and defrauding customers, registration,
    and disclosure violations.

Judge Davis held that Maseri, AIM, and Bullseye defrauded customers
    during 1994 in connection with selling a commodity software trading advice
    program known as the "CAT-FX program" that was developed, owned and
    marketed by Maseri. The court determined that Maseri, AIM and Bullseye made
    "duplicitous" claims about the CAT-FX's trading success in order to promote
    the fraudulent trading program. Judge Davis also found that Maseri himself
    misled customers by highlighting his experience at major brokerage firms
    while failing to disclose that he had been discharged for cause from those
    firms. The court also found that Maseri failed to disclose that he had been
    barred from the securities industry after a decision of the National
    Association of Securities Dealers found that he converted customer funds to
    his own use.

The court further found that Maseri failed to register with the CFTC as
    a commodity trading advisor, futures commission merchant and commodity pool
    operator or to provide customers with disclosure documents as required
    under the CEA.

Judge Davis ordered a hearing to be held on November 12, 1997, in Miami
    to determine whether Maseri should be held in contempt for transferring
    assets in violation of the order of preliminary injunction entered on
    October 25, 1995. At the same time, the court will also hold a hearing to
    determine whether Ronald Bruce Romberg, of Lighthouse Point, Florida, who
    was charged in the complaint, should be held in contempt for failing to
    obey the court's order to appear and give testimony in this case.

The CFTC Enforcement Division anticipates that the court will issue a
    final judgment and order that will permanently enjoin Maseri and the other
    defendants from engaging in the violations charged in the complaint, and
    may afford other relief, including disgorgement and restitution.
    Geoffrey Aronow, the CFTC's Director of Enforcement, stated:
    "We are gratified by the court's strong action in this matter and the
    deterrent message it sends to those who would defraud the public by making
    false claims in connection with transactions involving use of commodity
    trading software. We continue to be concerned about activity in this area
    and will continue our efforts to combat fraud in connection with futures
    and options trading systems."