Financial Firm Faces Charges.Los Angeles-based Madison Financial Group and its two principals are the target of a complaint filed by securities regulators accusing them of fraudulently fraud·u·lent adj. 1. Engaging in fraud; deceitful. 2. Characterized by, constituting, or gained by fraud: fraudulent business practices. soliciting thousands of customers to open commodity option accounts. The Commodity Futures Trading Commission The Commodity Futures Trading Commission (CFTC), the federal regulatory agency for futures trading, was established by the Commodity Futures Trading Commission Act of 1974 (88 Stat. 1389; 7 U.S.C.A. 4a), approved October 23, 1974. alleges that, from April 1998 to March of this year, Madison principals Richard A. Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. and Ronald G. Scott instructed employees to promise huge returns that could not be delivered. Madison misrepresented its performance record and failed to disclose the risks involved in trading commodity options, the complaint alleges. Madison opened more than 2,800 accounts with a total of about $20 million in customer funds. About 97 percent of the accounts suffered net losses, the CFTC CFTC See: Commodity Futures Trading Commission CFTC See Commodity Futures Trading Commission (CFTC). said. |
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