Release:#3980-96

Release:December 12, 1996

CFTC'S DIVISION OF ENFORCEMENT ESTABLISHES VIRTUAL OPEN HOUSE ON
    WORLDWIDE WEB; DEFENDANT DONALD CHANCEY'S PROPERTY TO BE AUCTIONED TO
    RECOVER FUNDS ALLEGEDLY EMBEZZLED IN COMMODITIES SCHEME

WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
    today that it has established pages on its Worldwide Web site that display
    the personal property of Donald B. Chancey, a defendant in a CFTC
    civil injunctive action, whose assets will be auctioned on December 14,
    1996. Chancey, who disappeared this past May, allegedly embezzled $3
    million from investors through his operation of an unregistered commodity
    pool called the Southeastern Venture Partners Group (SVPG).

The web pages provide potential bidders who were unable to inspect
    Chancey's property at a December 7 pre-auction open house with a "virtual
    open house" where they can view photographs of the defendant's belongings,
    including oriental rugs, computer equipment, furniture, and appliances. The
    auction will be held at Chancey's house located in Valdosta, Georgia's
    Fairview Historic District. The auction will be conducted under the
    auspices of a court-appointed receiver, who obtained approval for the
    auction from the Court. The receiver has taken control of Chancey's
    business and property pending final disposition of the CFTC's suit.

The virtual open house is the CFTC's latest use of the Internet in its
    case against Chancey and the SVPG. Previously, the CFTC posted a photograph
    of Chancey on the Worldwide Web in an effort to obtain information as to
    his whereabouts. Visitors to the CFTC's Worldwide Web site can report a
    sighting of Chancey by completing a form included on the special Chancey
    web page and e- mailing the form to the CFTC's Division of Enforcement.

In its six-count civil injunctive complaint filed in the U.S. District
    Court for the Middle District of Georgia, the CFTC has charged that the
    Chancey and SVPG -- both of Valdosta, Georgia -- violated the anti-fraud
    provisions of the Commodity Exchange Act (CEA) and CFTC regulations.
    The complaint alleges that the defendants fraudulently solicited customers
    to invest in an unregistered commodity pool; misappropriated funds by using
    them for personal and unrelated business expenses; and violated numerous
    disclosure, reporting, and recordkeeping requirements of federal commodity
    law and CFTC regulations. Neither of the defendants is registered with the
    CFTC in any capacity.

The CFTC complaint charges that since at least 1991, Chancey and SVPG
    fraudulently solicited customers to invest in a commodity pool, furnished
    customers with a promissory note guaranteeing a 23 percent annual return,
    pocketed some of the funds received from pool investors, and perpetuated
    their fraud by furnishing customers with phony account statements and
    reports, among other alleged violations.

On the same day the complaint was filed, the court entered an ex
    parte order against Chancey and SVPG, freezing their assets, appointing
    a receiver to take charge of the business operations and assets, and
    protecting books and records. The Court also issued a Writ of Ne
    Exeat, ordering Chancey to surrender himself to the United States
    Marshals because he posed a risk of flight from the United States.

In its continuing litigation against the defendants, the CFTC is seeking
    preliminary and permanent civil injunctions, in addition to other remedial
    relief, including restitution to defrauded customers. The complaint also
    seeks a civil monetary penalty against each defendant in the amount of
    $100,00, or triple the monetary gain to the defendants, whichever is
    greater, for each violation.

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