Gary F. Scholze

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					Case 2:06-cv-00114-wks

Document 51

Filed 09/11/2008

Page 1 of 12

2009-12-15

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF VERMONT _______________________________________ U.S. COMMODITY FUTURES ) TRADING COMMISSION, ) ) ) Plaintiff, ) ) v. ) ) GARY F. SCHOLZE, ) an individual, ) ) Defendant. ) _______________________________________)

Civil Action Docket No. 2:06-CV-00114

AMENDED ORDER OF PERMANENT INJUNCTION, RESTITUTION AND OTHER EQUITABLE RELIEF AGAINST DEFENDANT GARY F. SCHOLZE On June 8, 2006, Plaintiff, the U.S. Commodity Futures Trading Commission (“Commission”) filed a Complaint for permanent injunction and other relief, and moved pursuant to Sections 6c and 6d of the Commodity Exchange Act, as amended (the "Act"), 7 U.S.C. §§ 13a-1 and § 13a-2 (2002), for a Statutory Restraining Order and Preliminary Injunction, freezing the assets of the Defendant, Gary F. Scholze (“Scholze” or “Defendant”), and prohibiting the Defendant from destroying any business records, books or documents. On June 29, 2006, this Court issued a Statutory Restraining Order and a Preliminary Injunction and other equitable relief which, inter alia, preliminarily enjoined Defendant from further violating the Act and Commission Regulations (“Regulations”) as alleged in the Complaint, froze Defendant’s assets, ordered the maintenance of and access to business records, and subsequently, through a modification to the Order, required Scholze to submit to a receivership.

SOURCED: WWW.BACKGROUNDNOW.COM Page 1 of 12 www.BackgroundNow.com provides background checks to businesses; publishes fraud, corruption, and other criminal and civil case news; and distr butes case complaints, indictments, plea agreements and other court documents to analysts, bloggers, journalists, reporters and interested readers. Always keep in mind that indictments, complaints or informations are not evidence of guilt. These are descriptions of accusations made against defendants. Those accused are presumed innocent until guilt beyond a reasonable doubt is proven or until guilt is admitted or plead.

Case 2:06-cv-00114-wks

Document 51

Filed 09/11/2008

Page 2 of 12

2009-12-15

On May 14, 2007, Defendant answered the Complaint, admitting the truth of the factual allegations contained therein. Contained within the Defendant’s Answer was Scholze’s consent to an Order of Permanent Injunction and his intention to contest the imposition of a civil monetary penalty. On October 9, 2007, the Court held a joint sentencing/ civil monetary penalty hearing. The Court, being fully advised in the premises, finds that there is good cause for the entry of this Order and that there is no just reason for delay. The Court therefore directs the entry of findings of fact, conclusions of law and a permanent injunction and ancillary equitable relief pursuant to § 6c and §6d of the Act, 7 U.S.C. § 13a-1 (2002), as set forth herein. I. FINDINGS OF FACT AND CONCLUSIONS OF LAW A. FINDINGS OF FACT 1. Commencing in approximately August 2001, Scholze fraudulently solicited and

accepted funds from individuals for the purpose of trading commodity futures and options on their behalf. Scholze offered either the opportunity for him to trade on their behalf through individual managed accounts or to participate in a commodity pool. Following these solicitations, at least thirty-two members of the general public gave Scholze funds totaling approximately $2.1 million to invest in commodity futures and options. 2. Scholze, a retired chiropractor, placed print advertisements in a professional

publication for chiropractors offering to teach individuals how to “trade world markets as a second (or first) career. Retired Chiro will teach you how. Courses customized and guaranteed.” Scholze also solicited investors at commodities trading seminars, where he taught the students, among other things, about trading commodity futures and options, for a fee.
SOURCED: WWW.BACKGROUNDNOW.COM Page 2 of 12 www.BackgroundNow.com provides background checks to businesses; publishes fraud, corruption, and other criminal and civil case news; and distr butes case complaints, indictments, plea agreements and other court documents to analysts, bloggers, journalists, reporters and interested readers. Always keep in mind that indictments, complaints or informations are not evidence of guilt. These are descriptions of accusations made against defendants. Those accused are presumed innocent until guilt beyond a reasonable doubt is proven or until guilt is admitted or plead.

Case 2:06-cv-00114-wks

Document 51

Filed 09/11/2008

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2009-12-15

3.

In his solicitations, Scholze offered several different services, generally holding

himself out as a trader in commodity futures and option markets. Specifically, Scholze offered to trade commodity futures and options on behalf of the investors. Depending upon the amount of money invested by the individual, Scholze represented that he would either trade th
				
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