The CFTC does not verify or otherwise pass upon commodity trading results or commodity trading systems and has not in any manner passed upon the effectiveness or profitability of Calhoun's trading systems or the accuracy of any advertisements he has disseminated touting these systems. In addition, the Commission seeks civil penalties and restitution, an accounting, disgorgement and such other equitable relief as the Court may deem necessary or appropriate. Given Calhoun's pattern of fraudulent activity, unless restrained and enjoined by this Court, Calhoun is likely to continue to engage in the acts and practices alleged in this Complaint, as more fully described below. The Act establishes a comprehensive system for regulating the purchase and sale of commodity futures contracts and options. From on or about June 1995 through at least January 1999, Calhoun willfully placed advertisements in Futures magazine, a monthly commodity futures industry publication, in connection with orders to make, or the making of, contracts of sale of commodities for future delivery in interstate commerce.
Most ads overstate results citing only their test figures.
KCI advertising statements from 1987 to 1995 documented to the CFTC in Federal Court . On information and belief, Calhoun engaged in a direct mailing campaign in connection with orders to make, or the making of, contracts of sale of commodities for future delivery in interstate commerce by mailing out approximately 6,100 letters to customers and potential customers between on or about August 1998 and December 1998. The CFTC does not verify, endorse or otherwise pass upon the adequacy, accuracy or success of any trading advice, system or methodology and has not done so with respect to Calhoun, KCI, the trading activities of any of Calhoun's alleged customers, or any of Calhoun's trading advice, systems or methodologies. The CFTC does not pass upon the truthfulness or accuracy of any advertisements for commodity trading advice, systems or methodologies and has not done so with respect to any of Calhoun's advertisements. Paragraphs 1 through 16 are re-alleged and incorporated herein.