Release: #4195-98
    (Civ-PJM-98-3316)

For Release: October 6,
    1998

CFTC Charges Bethesda, Maryland
    Firms And Their Principal With Fraud and Sale of Illegal Off-Exchange
    Foreign Currency Futures Contracts In International Foreign Currency
    Trading Scheme

Court Issues Ex Parte
    Order Freezing Assets of Defendants and Alleged Corporate Affiliates in the
    United Kingdom and Hong Kong

WASHINGTON -- The Commodity
    Futures Trading Commission (CFTC) announced today that on October 1, 1998,
    it filed a four-count civil injunctive
    action in the U.S. District Court for the District of Maryland against
    Noble Wealth Data Information Services, Inc. (Noble Wealth), International Advanced Investment, Inc. (IAI) and Esfand
    Baragosh, who is a principal of both firms, charging them with
    fraudulently selling illegal off-exchange futures contracts in foreign
    currencies, such as Japanese Yen, Swiss Francs, German Deutschemarks, and
    British Pounds.

The CFTC's complaint alleges
    that, from August 1994 to the present, the defendants violated the
    anti-fraud and various other provisions of the Commodity Exchange Act (CEA)
    and CFTC regulations by cheating and defrauding customers, offering and
    selling illegal futures contracts on foreign currencies, misappropriating
    customer funds, and bucketing orders.

On October 1, 1998, the Honorable
    Peter J. Messitte issued a statutory ex parte restraining order
    freezing the assets of the defendants, as well as the assets of Noble
    Wealth Development, Ltd. (Noble Wealth HK), a Hong Kong firm, and Bull & Bears, Ltd., a/k/a Bull & Bears International Investment,
    Ltd. (Bull & Bears UK), of the United Kingdom. The CFTC complaint
    alleges that the two foreign companies are affiliates of Noble Wealth, and
    that they have received funds directly traceable to the fraud.

The court's restraining order also
    prohibits Noble Wealth, IAI, and Baragosh from destroying any of their
    books and records, and requires them to make their books and records
    available for inspection and copying by the CFTC. Judge Messitte has also
    appointed a receiver to take control of Noble Wealth and IAI and marshal
    assets for potential redress to injured customers.

According to the CFTC's complaint,
    Noble Wealth, IAI, and Baragosh solicit funds from members of the general
    public through classified advertisements placed weekly in newspapers, such
    as The Washington Post. The complaint also alleges that so-called
    "traders," who respond to the advertisements, attend a brief training
    program during which Noble Wealth allegedly claims that over 30 percent
    profit can be achieved in just a few days

time by trading foreign currencies
    through Noble Wealth. According to the complaint, the defendants furnish
    traders with scripts and brochures that depict extraordinary profit
    projections, urge them to open their own accounts, and dispatch these
    traders to recruit family members and friends to open accounts with Noble
    Wealth. The complaint charges

that instead of using customer
    money to buy foreign currencies, defendants siphon off a substantial
    portion of the funds to pay personal expenses, operating expenses, and
    salaries and commissions, and divert other funds to overseas
    accounts.

Geoffrey Aronow, Director of the
    CFTC's Division of Enforcement, commented:

"This case is part of the
    Commission's continued crackdown on foreign currency schemes that
    offer slapdash training to inexperienced investors and urge them to market
    these investments to family, friends, and other members of the public.
    These schemes are part of a larger pattern of efforts to induce the public
    to trade foreign currencies by dangling the prospect of huge profits in
    little time. Individuals considering trading in foreign currencies or other
    futures should be skeptical of promises of quick riches with little risk
    and evaluate carefully whether such trading is appropriate for their
    needs."

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
    customers.

The Maryland Division of
    Securities provided valuable assistance to the CFTC during the
    investigation of this matter.