CFTC ACTION: American Derivatives Corp et al.

The CFTC announced that it obtained more than $6.75 million in civil monetary penalties and equitable relief in a court order against American Derivatives Corp. (ADC), Brokerage Management Corp., Layne D. Gerstel and Devereaux D. Booth, all of Atlanta, Ga., and David N. Mittler of Aventura, Fla.

The consent order of permanent injunction, entered on December 15, 2009, in the U.S. District Court for the Northern District of Georgia, resolves a CFTC enforcement action that charged defendants with fraudulently soliciting more than 274 customers to trade commodity options and failing to supervise employees committing such fraud.

In 2008, the court issued a consent order against defendants National Commodities Corporation, Inc. (NCCI) and International Commodity Clearing, LLC (ICC), both of Fort Lauderdale, Fla., and formerly registered futures commission merchants and guarantors of ADC. The order holds NCCI and ICC jointly and severally liable for that portion of ADC’s restitution obligation attributable to the period of time during which each company’s guarantee agreement with ADC was in effect.

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