U.S. Securities and Exchange Commission
Litigation Release No. 16401 / January 6, 2000
Securities and Exchange Commission v. Currency Trading International, Inc., Brian R. Moore, Craig A. Cunningham, Craig Wiginton, James R. Kelsall, Christian J. Weber and Robert Shane Jones, Civil Action No. SACV-00-12 AHS (ANx) (C.D.Cal.).
The Securities and Exchange Commission announced today that it filed an enforcement action in federal district court in Santa Ana, California against the broker-dealer Currency Trading International, Inc. (CTI), its owners, Brian R. Moore (Moore) and Craig A. Cunningham (Cunningham), and its managers, Craig Wiginton (Wiginton), James R. Kelsall (Kelsall), Christian J. Weber (Weber) and Robert Shane Jones (Jones). The Commission alleges that the defendants engaged in the fraudulent offer and sale of foreign currency options in a high pressure telephone campaign. Between 1994 and the fall of 1998, the defendants generated over $16 million in commissions from more than 900 investors in California, Ohio, Georgia and Colorado.
The complaint alleges that the defendants initially told investors that they could double or triple their money within days, misrepresenting the speculative nature of foreign currency options, and then pressured investors to send more money to recover losses. The complaint further alleges that the defendants did not return funds to investors, allow investors to control activity in their accounts, or permit investors to sell options positions without purchasing new positions.
Moore, 38, resides in Bath, Ohio; Kelsall, 28, resides in Barberton, Ohio; and Jones, 35, resides in Fairlawn, Ohio. Cunningham, 42, resides in Irvine, California; Wiginton, 48, resides in Anaheim, California; and Weber, 27, resides in Huntington Beach, California. The Commission seeks an injunction, civil penalties and disgorgement with prejudgment interest against each of the defendants for violating the antifraud provisions, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.