Release: #4245-99 (CV-98-N-1755-S)

For Release: March 17, 1999

**U.S. District Court for the Northern District of Alabama Orders    Payment of $45 Million and a Permanent Injunction By Default Against Dr.    Richard E. Busch in Alabama Commodity Pool Fraud Case**

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced    that **Dr.�Richard E. Busch,** defendant in *CFTC v. The    ChateauForte Consortium, Inc. et. al.,* has been ordered to pay over $45    million as part of an order of permanent injunction entered against him by    default for his violations of the anti-fraud and registration provisions of    the Commodity Exchange Act (CEA). The order directs **Busch** to make    full restitution to investors of at least approximately $13 million,    including prejudgment interest, and to pay a civil monetary penalty of over    $32 million. Judge Edwin L. Nelson of the Northern District of Alabama    signed the order on March 5, 1999.

In its order, the court finds that **Busch** failed to answer or    otherwise plead to the complaint filed by the CFTC in the Northern District    of Alabama on July 7, 1998 (see CFTC News Release #4166-98, July 13, 1998)    and that all the allegations and facts contained in the CFTC's complaint    and other pleadings are deemed admitted as true.

Based on the complaint and the court's order, the court finds that since    approximately October 1996, **Busch** participated with other defendants    in soliciting Alabama residents to invest at least $10.8 million in **The    Millennium Fund**, an unregistered commodity pool. The court further    finds that, **Busch**, acting through co-defendant **The�ChateauForte Consortium, Inc.,** misappropriated investor funds,    acted as an unregistered commodity pool operator, and failed to comply with    commodity pool reporting and disclosure requirements. **Busch**,    according to the complaint, lives in Fort Wayne, Indiana,

The court's order enjoins Busch from violating the anti-fraud and    registration provisions of the CEA, as well as certain reporting and    disclosure provisions, and from engaging in any commodity futures-related    activity, including entering into any commodity futures transactions or    accepting funds from investors for the purpose of trading commodity futures    contracts. Furthermore, the order leaves in place the court's July 7, 1998    order freezing assets, preserving records, and appointing a receiver over    all named defendants, including **Busch**.

Previously, on August 24, 1998, the court entered a consent order of    preliminary injunction against defendants **James Michael Hanks** and    **Financial Planning Alliance International** (see CFTC News Release #    4184-98, August 27, 1998). In the pending litigation, the CFTC seeks a    court order permanently enjoining **The ChateauForte Consortium, Inc.**,    **WorldEx, S.A.**, **John La Tourette**, and **William E. Amos**    from violations of the CEA and requiring the defendants to make an    accounting, to disgorge profits, to make restitution to defrauded    customers, and to pay civil fines not exceeding $110,000 per violation or    triple the defendants' monetary gain.

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