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       Commodity Futures Trading
         Commission
         Office of External Affairs (202) 418-5080
         Three Lafayette Centre
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         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: 5080-05For Release: May 27, 2005
  BRITISH COLUMBIA CITIZEN KEVIN STEELE CHARGED WITH DEFRAUDING OVER 200
   PARTICIPANTS, INCLUDING U.S. RESIDENTS, IN $7.5 MILLION COMMODITY POOL SCHEME
  Scheme Touched Victims Worldwide
  WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC)
   announced today that on May 26, 2005, the Honorable Milton I. Shadur of the
   United States District Court for the Northern District of Illinois, acting on a CFTC
   enforcement complaint filed on May 25, 2005, issued a restraining order freezing the
   assets of defendant Kevin J. Steele, a Canadian citizen with a Mexican national
   ID, and prohibiting Steele from destroying books and records. CFTC v. Kevin J.
   Steele, No. 05C 3130 (N.D.Ill.).
  The CFTC complaint charges Steele with violating the anti-fraud provisions of the
   Commodity Exchange Act (CEA) in his operation of a commodity pool. According to the
   complaint, between December 2002 and May 2005, Steele touted the success of his
   trading as he solicited and accepted at least $7.5 million for his commodity pool
   from at least 200 investors worldwide. The CFTC has learned that a large proportion of
   the participants reside in the Canadian Province of British Columbia, but some are
   U.S. residents and others reside in Germany, Italy, Japan, and Greece.
  The CFTC complaint alleges that Steel pooled the participants’ funds to trade
   such commodity futures as the E-mini S&P and e-CBOT Treasury Bond contracts. As
   alleged, Steele traded these futures contracts through at least two accounts at a
   futures broker located in Chicago, Illinois. The complaint further alleges that Steele
   issued false statements reflecting monthly profits from that trading, when, in
   reality, he lost at least $3 million trading.
  Steele also is charged with acting as a commodity pool operator without being
   registered with the CFTC.
  In the continuing litigation, the CFTC is seeking preliminary and permanent
   injunctions, orders requiring the repayment of funds to defrauded participants and the
   return of ill-gotten gains, and an order imposing civil penalties.
  The following CFTC Division of Enforcement staff members are responsible for this
   case: Ava M. Gould, Diane M. Romaniuk, Mary E. Spear, Donald G. Nash, Daniel A.
   Nathan, Grant Collins and Scott R. Williamson.
  The CFTC also appreciates the assistance it has received from the Integrated Market
   Enforcement Branch of the Royal Canadian Mounted Police’s Federal and
   International Operations Directorate, and the British Columbia Securities Commission.
  # # # | Media Contacts
   Alan Sobba
   (202) 418-5080
   Dennis Holden
   (202) 418-5088
   CFTC Office of External Affairs
  Staff Contact
   Rosemary Hollinger
   Associate Director and
   Regional Counsel
   CFTC Division of Enforcement
   (312) 596-0520
  Related DocumentsComplaintAsset Freeze Order
   Information for Kevin J. Steele Investors