Case Status Report: Gordon Driver and Axcess

The CFTC filed a Federal injunctive complaint against Gordon A. Driver, Axcess Automation LLC and Axcess Fund Management LLC on May 14, 2009 in the Central District of California (Case No. 09-CV-0578 ODW (RZx)). The US Securities & Exchange Commission (SEC) filed a related action on the same day (Case No. 09-CV-3410 ODW (RZx)). The CFTC’s complaint charges that Defendants engaged in a fraudulent commodity pool Ponzi scheme that defrauded over 100 investors in the U.S. and Canada of at least $13.5 million and that they misappropriated investor funds. The complaint also charges that Defendants Driver and Axcess Automation commingled pool funds and failed to register as a Commodity Pool Operator, and that Axcess Fund Management failed to produce documents requested by the CFTC during its investigation.

March 14, 2011

There will be a hearing on Plaintiff’s motion for default judgment against all Defendantsat in Courtroom 11, US District Court, Central District of California (Los Angeles) at 1:30 pm (PST).

March 4, 2010

Judge Otis D. Wright II of the U.S. District Court for the Southern District of California has vacated the hearing in this matter that had been scheduled for March 5, 2010 at 3 pm

February 2, 2010

Court orders continuance of February 5, 2010 Order to Show Cause Hearing to March 5, 2010 at 3:00 pm in the courtroom of the Hon. Otis D. Wright II, US District Court, Central District of California.

January 11, 2010

At the 1:30pm Hearing in US District, Central District of California (Western Division – Los Angeles) before Judge Otis D. Wright II on Plaintiff’s Motion for Issuance of Order to Show Cause Why Defendants Should Not Be Held in Contempt.

August 26, 2009

California Federal Court Order Continues Asset Freeze against Las Vegas Resident Gordon A. Driver, Axcess Automation LLC and Axcess Fund Management LLC

CFTC charged defendants in May with operating a $13.5 million Ponzi scheme that defrauded more than 100 participants in the United States and Canada

Washington, DC -The U.S. Commodity Futures Trading Commission (CFTC) today announced that a Federal court judge in Los Angeles continued an asset freeze against Gordon A. Driver of Las Vegas, Nev. and his companies, Axcess Automation LLC and Axcess Fund Management LLC, all charged in a CFTC anti-fraud action with operating a $13.5 million Ponzi scheme. The scheme allegedly defrauded more than 100 participants in the United States and Canada, with many participants residing in Los Angeles County and in Ontario Province.

The preliminary injunction order, entered on August 17, 2009, by Judge Otis D. Wright II of the U.S. District Court, Central District of California, continues the court’s asset freeze against the defendants entered on May 14, 2009, when the CFTC charged them with defrauding commodity pool participants. The court order requires defendants to provide to the CFTC an accounting of their assets and prohibits them from engaging in any commodity-related trading, among other relief.

The order arises from a CFTC complaint that charges defendants with operating two commodity pools as a Ponzi scheme, misappropriating pool participant funds and issuing false statements to participants. Defendants allegedly accepted more than $13.5 million from participants and traded only about $3.7 million of this amount, losing approximately $3.5 million. Gordon Driver allegedly misappropriated pool funds for his personal expenses, including cash withdrawals at Las Vegas casinos (See CFTC Press Release 5656-09, May 15, 2009).

The U.S. Securities and Exchange Commission (SEC) filed a related civil action against Driver and Axcess Automation LLC on May 14, 2009 (SEC v. Driver, et al., case no. 09cv3410 ODW (RZx)). On April 15, 2009, the Ontario Securities Commission (OSC) filed a cease trading order against Driver, temporarily prohibiting him from trading any securities within Ontario Province. The CFTC appreciates the assistance of the SEC and the OSC in this litigation.

In the continuing litigation, the CFTC seeks a permanent injunction order, civil monetary penalties and other equitable relief against the defendants.

August 17, 2009

Hearing in Central District of California (Western Division) before Judge Wright. Court denies Driver’s motion to modify asset freeze to pay for an attorney. Court issues a preliminary injunction against further violations, temporarily bans Defendants from trading commodity futures and options, and continues asset freeze. Court also orders Defendants to answer the complaint within 45 days. See CFTC press release pr5704-09.

June 4, 2009

Hearing in Central District of California (Western Division) on Order to Show Cause why preliminary injunction should be issued against Defendants. Court allows Defendants 60 days to obtain an attorney.

May 14, 2009

CFTC files complaint charging Gordon Driver, Axcess Automation LLC, and Axcess Fund Management LLC with engaging in a fraudulent Ponzi scheme in connection with two commodity pools operated by Defendants. See CFTC’s press release pr5656-09.

Related Documents

• Order, August 17, 2009
• CFTC Press Release 5656-09, August 26, 2009

Media Contacts
Scott Schneider
(202) 418-5174
Dennis Holden
(202) 418-5088
Office of External Affairs

Staff Contact:
David Acevedo
Chief Trial Attorney
CFTC, Division of Enforcement
140 Broadway - 19th Floor
New York, NY 10005
646-746-9754

Last Updated: March 23, 2011