|CFTC Seal
       Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | CFTC Seal                                                                                                                                                                                                                                                                          | Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581
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|CFTC Seal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581                                                                                 
|Release: 4971-04
   For Release: August 13, 2004
U.S. COMMODITY FUTURES TRADING COMMISSION CHARGES FLORIDA
              COMPANY WORLDWIDE COMMODITY CORPORATION AND FOUR INDIVIDUALS WITH
              DEFRAUDING CUSTOMERS
  Firm And Certain Traders Allegedly Made False Claims That
              Accounts Would Make Large Profits With Little Risk Due To
              Seasonal Events
              WASHINGTON, D.C. – The U.S. Commodity Futures Trading
              Commission (CFTC) announced today the filing of a one-count
              enforcement action in the United States District Court for the
              Eastern District of Pennsylvania against defendants Worldwide
              Commodity Corporation (Worldwide) of Pembroke Pines, Florida,
              and current employees Steven Labell and Joseph L.
              Allen both of Plantation, Florida, Bruce N. Crown of
              Pembroke Pines, Florida, and Phil Ferrini of Sunrise,
              Florida (defendants), alleging that they fraudulently induced
              customers to trade options on commodity futures contracts. The
              complaint 
			  also charges that Universal Financial Holding
              Corporation of Aventura, Florida, a futures commission
              merchant that guarantees Worldwide's liabilities, is also
              liable for any violations of the Commodity Exchange Act and CFTC
              regulations for which Worldwide is found liable. The complaint
              was brought in a Pennsylvania federal court because many of the
              customers who allegedly received defendants' fraudulent
              solicitations were located there.
              The CFTC's complaint alleges that defendants fraudulently
              solicited customers by exaggerating the profitability of trading
              commodity options, including statements that customers could
              double or triple their money within short time periods. According
              to the complaint, defendants based these profit representations
              on seasonal trends, well-known public information, and their
              alleged previous trading successes, statements that the complaint
              alleges misrepresented the profitability of trading commodity
              options. The complaint further charges that defendants falsely
              represented to customers that the risks of loss from trading
              options were minimal, while failing to disclose the fact that,
              during 2002 and 2003, more than 99 percent of the firm's 368
              customers lost money trading commodity options, for total
              customer losses of more than $4 million.
              The complaint seeks injunctions against the defendants from
              violating the CEA and regulations, demands a return of funds for
              defrauded customers, repayment of ill-gotten gains, and an award
              of civil penalties. A copy of the complaint is available at
              www.cftc.gov.
              Complaint Also Names Relief Defendant
              The complaint also names Larry Kahn, a director and
              shareholder of Worldwide Commodity, as a relief defendant in the
              action. Relief defendants are persons who are alleged to have
              received funds from an illegal scheme, but who are not charged
              with legal liability for the scheme itself, and may not have had
              any knowledge of it.
              The CFTC also announced today that on July 31, 2004, it filed a
              Notice of Intent to revoke the CFTC registration of defendant
			  Crown 
			  as an Associated Person for failing to disclose that
              he was suspended and subsequently disbarred from the practice of
              law by the Florida Supreme Court.
              The CFTC would also like to thank the National Futures
              Association for its assistance.
              The following CFTC Division of Enforcement staff members are
              responsible for this case: Jan Folena, Jed Silversmith, Lacey
              Dingman, and Richard Glaser.
  # # # | Media Contacts
   Alan Sobba
   (202) 418-5080
   Dennis Holden
   (202) 418-5088
   Office of External Affairs
  Staff Contact
 Richard Glaser
 Associate Director
 CFTC Division of Enforcement
 Washington, DC
(816) 931-7600
  
  Related DocumentComplaintNotice