CFTC News Release 4399-00

For Release May 15, 2000

**CFTC PARTICIPATES IN INTERNATIONAL "*INTERNET SURF" DAY* TO    UNCOVER FRAUDULENT PROMOTION OF COMMODITY SCHEMES**

WASHINGTON � The Commodity Futures Trading Commission (CFTC)    announced today that it participated in an international ***Internet    Surf Day*** which targeted futures and securities fraud and abuse on    the Internet.

The ***Surf Day***, organized by the International Organization    of Securities Commissions (IOSCO), took place on March 28, 2000, and    included the participation of approximately 220 individuals from 21    regulators in 18 countries. Participants identified more than 1,000    Internet web sites for follow up review, including approximately 250 sites    that involved cross border activity.

CFTC staff were joined in their efforts by staff from the National    Futures Association (NFA). In total, CFTC and NFA participants devoted 130    hours to the surf and identified dozens of sites for further review, a    number of which involved cross border activity.

The sites identified for follow-up review by CFTC and NFA staff involved    a variety of trading opportunities, including foreign currencies, stock    indices, precious metals and energy products. Some claimed profits based on    the seasonality of commodities (for example, heating oil and gasoline).    Other sites advertised computerized trading systems of various kinds,    boasting large profit potential while minimizing risk of loss.

According to Phyllis Cela, CFTC Acting Director of Enforcement,    IOSCO�s International Internet Surf Day provided a unique opportunity    for IOSCO members to coordinate their identification of potentially    fraudulent activity on the Internet and send a clear signal to wrongdoers    that they cannot escape detection:

*International cooperative efforts like the IOSCO Internet Surf Day      are a key component of effective enforcement in a global marketplace. The      CFTC is committed to protecting US customers from bogus claims about      commodity investment opportunities, wherever they occur. Joining forces      with other IOSCO members around the world enhances our effectiveness in      stopping fraud and educating the public.*

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***Notes to Editors:***

On May 1, 2000 the CFTC filed 10 enforcement actions involving    fraudulent activity on the Internet by promoters of commodity trading    systems. CFTC Release No. 4397-00 (www.cftc.gov/opa/enf00/4397-00.htm). The CFTC    simultaneously issued a Consumer Advisory warning the public about the    risks of trading and some steps they can take to educate

themselves before trading or purchasing a trading system. CFTC May 1,    2000 Advisory (www.cftc.gov/enf/00orders/posting4-tradingsystem.htm).

Other Advisories issued by the CFTC include:

- "Foreign Currency Trading Fraud" CFTC Release No. 4127-98 ( www.cftc.gov/opa/enf98/forexa15.htm )
- "Sales Pitches Based on Seasonal Demand and Other Public      Information." CFTC Release No. 4204-98 ( www.cftc.gov/opa/enf98/opa4204-98.htm )

For further information about IOSCO    International Internet Surf Day, contact Peter Clark, IOSCO Secretary    General at 514.875.8278.

List of participating IOSCO members and    websites:

| **IOSCO Member Organization**                                            | **Website Address**                   |
|--------------------------------------------------------------------------|---------------------------------------|
| AUSTRALIA - Australian Securities and Investments            Commission | http://www.asic.gov.au/               |
| CANADA - Ontario Securities Commission                                   | http://www.osc.gov.on.ca/             |
| CANADA            - Commission des Valeurs Mobili�res du Qu�bec         | http://www.cvmq.com/                  |
| FRANCE -            Commission des Op�rations de Bourse                 | http://www.cob.fr/                    |
| GERMANY - Bundesaufsichtsamt            F�r Den Wertpapierhandel        | http://www.bawe.de/index.htm          |
| GREECE � Capital Market            Commission                           | [email protected]                |
| HONG KONG - Securities            and Futures Commission                | http://www.hksfc.org.hk/eng/index.htm |
| ITALY            - Commissionne Nazionale Per Le Societa E La Borsa     | http://www.consob.it/                 |
| JAPAN - Securities and            Exchange Surveillance Commission      | http://www.fsa.go.jp/sesc/sesc-j.html |
| MEXICO - Comision Nacional            Bancaria y de Valores De Mexico   | http://www.cnbv.gob.mx/index.htm      |
| NETHERLANDS - Stichting Toezicht Effectenverkeer                         | http://www.ste.nl/                    |
| NORWAY �            Kredittilsynet                                      | http://www.kredittilsynet.no/         |
| POLAND            - Polish Securities and Exchange Commission           | http://kpwig.gov.pl                   |
| PORTUGAL            - Commiss�o do Mercado de Valores Mobili�rios       | http://www.cmvm.pt/                   |
| SPAIN -            Comisi�n Nacional del Mercado de Valores             | http://www.cnmv.es/                   |
| SWEDEN            � Finansinspektionen                                  | http://www.fi.se/                     |
| SWITZERLAND - Swiss Federal Banking Commission                           | http://www.sfbc.admin.ch/             |
| UNITED KINGDOM - Financial Services Authority                            | http://www.fsa.gov.uk/                |
| UNITED            STATES - Commodity Futures Trading Commission         | http://www.cftc.gov/                  |
| UNITED STATES - National Futures Association                             | http://www.nfa.futures.org/           |
| UNITED            STATES - Securities and Exchange Commission           | http://www.sec.gov/                   |

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Many of the above-listed IOSCO members will announce separately the    results of their participation in the International Internet Surf Day. You    can contact the members directly for further information.

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