|CFTC Seal
       Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | CFTC Seal                                                                                                                                                                                                                                                                                                                                                  | Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581
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|CFTC Seal                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
         1155 21st Street, NW
         Washington, DC 20581                                                                                                                                                         
|Release: 5139-05For Release: November 28, 2005
      Illinois Federal Court Requires Canadian Commodity Pool
              Operator To Pay Over $7 Million In Restitution To Defrauded
              Investors In CFTC Enforcement Action
      WASHINGTON, DC – The U.S. Commodity Futures Trading
              Commission (CFTC) announced today that an Illinois Federal
              District Court entered an order of default judgment against
              Kevin J. Steele, a Canadian citizen and commodity pool
              operator, requiring Steele to pay over $7 million in restitution
              to defrauded pool investors and a contingent civil monetary
              penalty of $6.2 million as a result of his violations of federal
              commodities laws.
              The court’s order stems from a complaint filed by the CFTC
              against Kevin J. Steele in the United States District Court for
              the Northern District of Illinois on May 25, 2005 (see CFTC Press
              Release 5080-05, May
              27, 2005). Steele never responded to the CFTC’s
              allegations, and the court entered the default judgment order
              against him on November 22, 2005.
              The order finds that Steele defrauded and deceived pool investors
              by misappropriating at least $3.1 million of their funds,
              misrepresenting the value of the commodity pool, failing to
              disclose trading losses, and causing false statements to be
              issued to pool participants that misrepresented the balance of
              the participants’ respective interests in the pool.
              Specifically, the order requires Steele to pay restitution to
              injured investors in the amount of US$7,409,194.75 and to pay a
              civil monetary penalty of US$6.2 million after he has paid to the
              investors the full restitution amount. The order also releases to
              the Receiver General for Canada, in care of the Royal Canadian
              Mounted Police, any funds held in two commodity trading accounts
              held in Steele’s name at Interactive Brokers LLC and any
              funds held in Steele’s bank account at Bank of America in
              order to pay restitution to injured investors.
              The order also permanently enjoins Steele from further fraudulent
              conduct and from trading commodity futures or options on
              commodity futures or foreign currency.
              This litigation was part of a coordinated cooperative enforcement
              effort with the Royal Canadian Mounted Police-Integrated Market
              Enforcement Team (RCMP-IMET) and the British Columbia Securities
              Commission, who offered invaluable assistance to the CFTC during
              its investigation and litigation. Because most of the injured
              investors are Canadian citizens, the Receiver General for Canada,
              in care of Inspector George Pemberton, RCMP, Vancouver, British
              Columbia, will administer the restitution award.
              The following CFTC Division of Enforcement staff were responsible
              for this case: Diane M. Romaniuk, Ava M. Gould, Mary Elizabeth
              Spear, Rosemary Hollinger, and Scott R. Williamson.
      * * * * * * * * * * * * * *
      The CFTC encourages members of the public to bring to our attention any suspicious
       activities involving futures or commodity options, including matters involving
       foreign currency (forex) investments or suspicious Internet websites.�
      You may contact the CFTC at 1-866-FON-CFTC (1-866-366-2382),�visit us
       at our Customer Protection
       web page (www.cftc.gov/cftc/cftccustomer.htm), or fill out our Internet Report Form identifying your
       concerns (www.cftc.gov/enf/enfform.htm).
      In addition, the CFTC publishes a series of Consumer Advisories at
       http://www.cftc.gov/cftc/cftccustomer.htm#advisory alerting the public to
       warning signs of possible fraudulent activity and offering precautions individuals
       should take before committing funds.
      # # # | Media Contacts
       Alan Sobba
       (202) 418-5080 
       Dennis Holden
       (202) 418-508 
       Office of External Affairs
      Staff Contact
       Rosemary Hollinger
       Associate Director
       Regional Counsel
       CFTC Division of Enforcement
       (312) 596-0520
      Related DocumentOrder of Default Judgment