7.9.2009 The CFTC charges David Michael Kogan and his company, First Capital Futures Group, with operating a fraudulent commodity scheme involving 58 customers and causing more than $3 million in customer losses. The CFTC alleges that the defendants fraudulently solicited members of the public to trade options on commodity futures contracts by misrepresenting and failing to disclose material facts. According to the CFTC, Kogan and other First Capital brokers repeatedly told customers that they would make substantial amounts of money in a very short time by trading options. The CFTC stated that, despite mounting trading losses, Kogan, as well as other First Capital brokers, told customers that Kogan had “made millionaires out of several customers” and that many First Capital customers were making money. Instead, First Capital customers lost more than $3 million, of which more than $2.2 million was collected as commissions and fees.
Click http://www.cftc.gov/newsroom/enforcementpressreleases/2009/pr5675-09.html to access the CFTC press release.