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For Release: March 27, 2003
UTAH MAN CHARGED WITH DEFRAUDING CUSTOMERS
OF MORE THAN $300,000 IN FOREIGN CURRENCY (FOREX)
CFTC Obtains Federal Court Order Freezing Assets of
Defendants Bryan Hawker and G, Hawker & Stone, LLC
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC)
announced today that a federal district court in Utah issued an order freezing
the assets and preventing the destruction of the books and records of defendants
Bryan Keith Hawker of Sandy, Utah, and G, Hawker & Stone, LLC, a Utah limited
liability company that Hawker operated out of his home.
The order, entered on March 13, 2003, stems from a CFTC complaint filed the
day before, on March 12, 2003, alleging that, since at least October 2002,
the defendants fraudulently offered and sold foreign currency (FOREX) futures
contracts to the retail public, and accepted approximately $311,000 from at
least twelve persons.
Specifically, the complaint alleges that the defendants falsely claimed to
have successful experience trading accounts they managed for customers and
made statements minimizing the risks of FOREX trading when, in fact, the only
trading in which defendants are known to have engaged resulted in losses. In
addition, the complaint alleges that Hawker failed to disclose his criminal
background to investors and prospective investors, including a February 2000
guilty plea to a third-degree felony count of attempted insurance fraud, and
nine counts of state securities fraud that were pending since January 2002.
The CFTC complaint also charges that Hawker and G, Hawker & Stone did
not use investor funds to trade foreign currencies; instead, they used most
of the funds they accepted from investors for other purposes and have not accounted
for those funds. On March 5, 2003, Hawker was arrested by state authorities
and charged with five state law felonies arising from the same conduct charged
by the CFTC.
The CFTC is seeking an injunction against each of the defendants, the repayment
of ill-gotten gains, a refund of customer losses, and civil penalties against
each defendant of not more than the higher of $120,000 or triple the monetary
gain to the defendant for each violation of the Commodity Exchange Act or CFTC
Hearing on CFTC Motion for Preliminary Injunction Set for April 17th
The Honorable J. Thomas Greene of the United States District Court for the
District of Utah has set a hearing for the CFTC’s motion for preliminary
injunction for April 17, 2003, at 10:00 am.
The State of Utah, Department of Commerce, Division of Securities and the
Utah Attorney General’s Office assisted the CFTC staff in this investigation.
The following CFTC Division of Enforcement staff members are responsible for
this case: Michael Tallarico, William P. Janulis, Vincent B. Johnson, Scott
R. Williamson, and Rosemary Hollinger.
A copy of the CFTC complaint and restraining order may be obtained at www.cftc.gov.