California Department of Corporations Brings Enforcement Action against Commodities Firm Operating Illegally in Southern California.

SACRAMENTO, Calif. -- Majority of 44 Investors from Los Angeles, Orange County and San Diego; Allegedly Defrauded of at Least $4.4 Million Involving Foreign Currency Investments

The California Department of Corporations (Corporations) announced that it has issued a desist-and-refrain order against Universal Money Traders, Inc. (Universal), of Solana Beach to halt the illegal solicitation of customers to trade commodity contracts or foreign currency. As many as 44 Universal customers from Los Angeles, Orange County and San Diego had losses of at least $4.4 million. The order also named Mark Todd Hauze, Thomas V. Moore, Thomas Mooreland, and Shalice Ann Emerson.

The Corporations order alleges that, from 2003 through spring 2005, Hauze, Moore, Mooreland, and Emerson solicited the general public to trade commodity contracts or foreign currency through Universal's Web site and direct telephone marketing calls.

According to the order, Hauze, Moore, Mooreland, and Emerson never revealed to customers that the four of them were not registered with the Commodity Futures Trading Commission (CFTC) to trade commodity contracts or foreign currency. In 2002, Hauze's CFTC registration was suspended, he was barred from membership in the National Futures Association for three years, ordered to pay a $15,000 fine and $54,000 in restitution to four investors whose accounts he allegedly churned, trading accounts for the purpose of generating commissions without regard for customers' interest. In 1996 and 2001, the NASD ordered Moore to pay compensatory damages in two different instances for breach of fiduciary duty and misrepresentation.

"Before investors open an account, they should always check on a company's or individual's status," said acting Corporations Commissioner Wayne Strumpfer, whose department has regulatory jurisdiction over the California Commodities Law. "Trading commodities futures and options is not for everyone as it can be a volatile, complex and risky business."

Corporations counsel Ursula Clemons is responsible for this case.

The Department of Corporations is California's investment and financing authority and is responsible for the regulation, enforcement, and licensing of securities, franchises, off-exchange commodities, investment and financial services, independent escrows, consumer and commercial finance lending, residential mortgage lending, and payday lenders. Contact our toll-free consumer resource center at 866-ASK-CORP (275-2677) for information or to obtain a consumer complaint form. Please visit Corporations' Web site at www.corp.ca.gov.