NFA Distributes $1.9 Million Initial Payment To Defrauded Investors

by Glen Shapiro, LawAndTax-News.com, New York

23 August 2006

The US National Futures Association (NFA) announced on Monday that it has made an initial distribution of nearly $1.9 million to 241 investors as part of a court order issued on February 10, 2006, against a California company and two of its principals.

The case was filed by the Commodity Futures Trading Commission (CFTC) in the United States District Court for the Central District of California.

On August 4, 2004, the CFTC filed a complaint against Chase Commodities Corporation and Lee LaGorio, both of Woodland Hills, California; Excel Obando of Sun Valley, California; and Universal Financial Holding Corporation (UFHC) of Aventura, Florida. The complaint charged Chase with fraudulently soliciting customers by exaggerating the profitability of trading options on futures.

The court ordered the defendants to pay a total of $4.2 million in restitution to defrauded customers; assessed separate $120,000 civil monetary penalties against LaGorio and Obando; permanently enjoined Chase, LaGorio and Obando from engaging in sales solicitation fraud in violation of the Commodity Exchange Act and CFTC regulations; and banned Chase and LaGorio permanently, and Obando for five years, from trading on markets subject to Commission jurisdiction.

"With this initial distribution of restitution funds 241 investors will receive approximately 60% of their losses," announced NFA President Dan Roth. "We are currently receiving monthly payments from the respondents, which will allow us to make additional distributions in the future."

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