**Release: #4133-98** **For Release: April 8,
    1998**

**CFTC FILES CIVIL ANTI-FRAUD AND REGISTRATION
    CHARGES IN VERMONT**

**FEDERAL DISTRICT COURT AGAINST THOMAS B.
    O'CONNELL**

**IN CONNECTION WITH THE SALE OF COMMODITY FUTURES
    TO THE PUBLIC**

The Commodity Futures Trading Commission (CFTC) announced today that on
    April 8, 1998, it filed an injunctive action in the U.S. District Court for
    the District of Vermont against **Thomas B. O'Connell
    (O'Connell)**, alleging that O'Connell operated a multi-million
    dollar commodity pool Ponzi scheme in violation of the Commodity Exchange
    Act (the Act) and CFTC regulations (Regulations). Simultaneous with the
    filing, O'Connell consented to the entry of a permanent injunction and
    other relief.
     The eight count complaint alleges that between 1989 and 1995, O'Connell
    defrauded investors in two limited partnerships he operated, **O'Connell and Associates (OCA)**, a Vermont limited partnership, and
    **O'Connell Partnership Limited (OPL)**, a Florida limited
    partnership. The complaint alleges that during that period, O'Connell
    defrauded more than 50 investing limited partners out of funds in excess of
    $14 million. According to the complaint, O'Connell perpetuated his scheme
    by mailing false monthly reports to investors. In addition, O'Connell
    allegedly created a fictitious futures commission merchant to help him
    conceal his fraud, theft and actual trading losses from auditors. Among
    other things, the complaint alleges, O'Connell misappropriated investors'
    funds to pay personal living expenses, to purchase luxury homes and to
    purchase private aircraft. The complaint also alleges that O'Connell
    violated the registration provisions of the Act by operating an
    unregistered commodity pool and violated CFTC regulations by commingling
    funds of the pool with his own funds and failing to make proper disclosures
    to the pool participants.
     O'Connell consented to the entry of a permanent injunction prohibiting him
    from engaging in further violations of the Act and Regulations and from
    engaging in any commodity-related activity, including soliciting customers
    or customer funds or trading for himself or on behalf of other persons. The
    CFTC has filed O'Connell's signed consent to permanent injunction with the
    court where it now awaits formal entry. O'Connell is currently serving a 52
    month prison sentence for conviction on federal criminal charges stemming
    from his activities as sole general and managing partner of OCA and OPL.

The U.S. Attorney's Office for the District of Vermont, the Federal
    Bureau of Investigation and the Securities and Exchange Commission provided
    valuable assistance to the CFTC in the investigation of this matter. Also
    today, the CFTC instituted administrative proceedings alleging improper
    professional conduct against Henry & Horne, PLC, the public accounting
    firm that audited OCA's financial statements from 1992 through 1995, and
    two of its accountants, Sherald Griffin and Donna Laubscher, and accepted
    offers of settlement from Griffin and Laubscher.

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