You may also be interested in...
Case Status Report: Worldwide Commodity Corporation
October 25, 2004 Update
The Commission issued a Decision revoking Bruce N. Crown’s registration.
On August 2, 2004, the U.S. Commodity Futures Trading Commission (CFTC) filed a one-count enforcement action in the United States District Court for the Eastern District of Pennsylvania against Defendants Worldwide Commodity Corporation (Worldwide) of Pembroke Pines, Florida, and current employees Steven Labell and Joseph L. Allen both of Plantation, Florida, Bruce N. Crown of Pembroke Pines, Florida, and, Phil Ferrini of Sunrise, Florida (Defendants), alleging that they fraudulently induced customers to trade options on commodity futures contracts.
The complaint also charges that Universal Financial Holding Corporation of Aventura, Florida, a futures commission merchant that guarantees Worldwide Commodity's liabilities, is also liable for any violations of the Commodity Exchange Act and CFTC Regulations for which Worldwide is found liable. The complaint was brought in a Pennsylvania federal court because many of the customers who allegedly received Defendants' fraudulent solicitations were located there.
The CFTC's complaint alleges that defendants fraudulently solicited customers by exaggerating the profitability of trading commodity options, including statements that customers could double or triple their money within short time periods. According to the complaint, Defendants based these profit representations on seasonal trends, well-known public information, and their alleged previous trading successes, statements that the complaint alleges misrepresented the profitability of trading commodity options. The complaint further charges that Defendants falsely represented to customers that the risks of loss from trading options were minimal, while failing to disclose the fact that, during 2002 and 2003, more than 99% of the firm's 368 customers lost money trading commodity options, for a total customer loss of more than $4 million.