For Release: July 30, 2008
California Resident Gilbert Philip Castillo, Jr. to Pay More Than $272,000 to Resolve CFTC Anti-Fraud Action
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that Philip Castillo, Jr. of Walnut Creek, California, will pay $92,474.60 in restitution and a $180,000 civil monetary penalty to resolve CFTC charges that he committed fraud in connection with the trading of S&P 500 commodity futures and option contracts through three Internet websites.
The consent order, entered by the Honorable Thelton E. Henderson, U.S. District Court Judge for the Northern District of California, also permanently prohibits Castillo from engaging in any business activities related to commodity futures trading.
The order arises from a 2006 CFTC complaint against Castillo (see CFTC Press Release 5212-06). The complaint charged that Castillo and his company, Castle Enterprise Corporation (Castle) d/b/a WallStreetWar.com, CastilloResearch.com and Never-Lose.com (collectively, the Wall Street War websites), operated Internet websites from February 1999 through mid-2005 that made fraudulent representations to the general public regarding Castillo’s trading successes and the accuracy, profitability, and track record of Castle’s various commodity advisory services. During this time, Castle was purportedly acting as a Commodity Trading Advisor (CTA) without being registered with the CFTC, as required.
The order finds that Castillo violated the anti-fraud provisions of the Commodity Exchange Act by making false material representations through the Wall Street War websites. These representations included touting that the Wall Street War Advisory Service is “[p]roven to be the most accurate and profitable advisory available!”, and claiming that the system had a track record of 90 to 96 percent profitability, with “tremendous returns in different market conditions for six years!” that ranged “from 302% to 447%.” In fact, many of the advisory services offered to the public by Castillo and Castle never operated and clients were abandoned after purchasing trading systems or courses.
The order also finds Castillo liable as a controlling person of Castle and for being an unregistered Associated Person (AP) of Castle, which was operating as an unregistered CTA.
Previously, on February 5, 2007, the court entered a final default judgment against Castle, ordering it to pay $814,858.89 in disgorgement to be used for restitution to victims of its fraud and a $480,000 civil monetary penalty (see CFTC Press Release 5291-07).
The following CFTC Division of Enforcement staff members are responsible for this case: Timothy J. Mulreany, David Reed, Michael Amakor, Paul Hayeck, and Joan Manley.