Release:#3928-96

For Release:August 1, 1996

CFTC FILES FOUR-COUNT COMPLAINT AND OBTAINS PRELIMINARY INJUNCTION
    AGAINST THOMAS J. DENIZ OF MODESTO, CALIFORNIA

Defendant Is Charged with Defrauding More than 40 Commodity
    Pool

Customers of an Amount in Excess of $500,000

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
    today that on July 31, 1996, U.S. District Judge Oliver W. Wanger of the
    Eastern District of California in Fresno entered a preliminary injunction
    against Thomas J. Deniz of Modesto, California. The defendant has
    never been registered with the CFTC in any capacity.

The court's preliminary injunctive order stems from a four-count civil
    injunctive complaint filed by the CFTC on July 29, 1996, alleging, among
    other things, that the defendant violated the anti-fraud provisions of the
    Commodity Exchange Act (CEA) by cheating and defrauding customers.
    In addition, Deniz is alleged to have converted customer funds to personal
    use in connection with acting as an unregistered commodity pool operator.
    The complaint states that since at least December 1995, Deniz has solicited
    members of the public, by mail, telephone, and other means of interstate
    commerce, to participate in a commodity pool.

Specifically, the CFTC complaint alleges that Deniz, through
    misrepresentations and false statements, obtained in excess of $500,000
    from more than 40 customers, while acting illegally as a commodity pool
    operator. The complaint further alleges that Deniz received investor funds
    in his own name rather than in the name of the pool, deposited pool funds
    into accounts in his own name instead of in the name of the pool, and
    commingled his funds with those of pool participants.

Finally, the complaint alleges that Deniz entered into written
    investment guarantees with pool participants guaranteeing their principal
    when he lacked funds to cover these obligations. According to the
    complaint, Deniz also sent investors monthly statements reporting a return
    of over 25% per month when his commodity trading account was suffering
    losses. The complaint further alleges that Deniz represented to investors
    that their funds would be used for trading commodity futures when, in fact,
    he used a substantial portion of these funds to pay his personal expenses
    and to make principal and "interest" payments to other investors.

Preliminary Injunction Freezes Defendant's Assets, Prohibits
    Destruction of Books and Records, and Requires Deniz To Make an Accounting
    of His Assets

Without admitting or denying the allegations of the complaint, Deniz
    consented to the entry of a preliminary injunction which 1) enjoins him
    from violating provisions of the CEA requiring registration for commodity
    pool operators and prohibiting fraud and misappropriation of customers'
    funds, 2) freezes his assets, including accounts in which investors' funds
    were alleged to have been deposited, 3) prohibits the destruction of his
    books and records, and 4) orders him to account for all of his assets.

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