Release: 5527-08
For Release: July 31, 2008

Tampa Resident Edward J. Evors Ordered to Pay $904,000 in Restitution and Civil Monetary Penalties in CFTC Action Evors Permanently Prohibited from Engaging in Commodity Trading-Related Activities

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today that it obtained $452,000 in restitution and a $452,000 civil monetary penalty in a consent order against Edward J. Evors of Tampa, Florida. The order also permanently prohibits Evors, who has never been registered with the CFTC in any capacity, from engaging in any commodity trading-related activities.

The court also entered default judgment orders against two Nevada companies controlled by Evors, Bally Lines, Ltd. (Bally Lines) and GPS Fund, Ltd. (GPS), requiring them to disgorge funds received from Evors’ customers.

The orders were entered by the Honorable Richard A. Lazzara of the U.S. District Court for the Middle District of Florida. The consent order as to Evors resolves CFTC charges that he misappropriated customer funds that he solicited and received for the purpose of trading commodity futures contracts with Coyt E. Murray and Murray’s trading firm, Tech Traders, Inc. of North Carolina. Instead of investing customer funds with Tech Traders, Evors misappropriated the funds and concealed his theft by sending customers false account statements misrepresenting their investment. (See CFTC Press Release 5385-07, September 20, 2007.)

According to the CFTC’s September 2007 complaint, Evors instructed customers to send their funds to Bally Lines and GPS for placement with Tech Traders, but these firms actually provided no services and had no legitimate claim to any customer funds. As such, the complaint named Bally Lines and GPS as relief defendants and sought disgorgement from them.

Murray and Tech Traders were defendants in a previous CFTC enforcement action in which they and other defendants were ordered by the U.S. District Court of New Jersey to pay more than $30 million in sanctions (see CFTC Press Release 5357-07, July 23, 2007).

The following CFTC Division of Enforcement staff members are responsible for this matter: Elizabeth M. Streit, David A. Terrell, Joy H. McCormack, Scott R. Williamson, Rosemary Hollinger, and Richard Wagner.

Release: 5525-08

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.