UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
COMMODITY FUTURES TRADING )
COMMISSION, )
) Case No. 02-61307-civ-gold
Plaintiff,
v. )
) COMPLAINT FOR STATUTORY
DONALD C. O'NEILL, an individual, ) RESTRAINING ORDER, INJUNCTIVE
FRECOM TECHNOLOGY ) AND OTHER EQUITABLE RELIEF
CORPORATION, ) AND FOR CIVIL PENALTIES UNDER
MOMENTUM
TRADING
) THE COMMODITY EXCHANGE ACT,
GROUP, LTD., AS AMENDED, 7 U.S.C. §§ 1-25
NDT
FUND,
LLC,
)
ORCA FUNDS, INC., )
ORCA CAPITAL FUND A, LLC, )
ORCA MOHAVE A, LLC, )
ORCA HOPI A, LLC, and )
SHELALEY HOLDINGS, LLC, )
Defendants,
and )
)
DANIELLE
O'NEILL,
)
NANCY IAGROSSI, and )
ROBERT O'NEILL, )
)
Relief
Defendants.
)
________________________________ )
I. SUMMARY
1. Starting in January 2001 and continuing through at least July 2002, Donald
SNIPPETS:
NDT FUND,
owned, controlled or managed, solicited investments totaling least $13 million from at
least 29 customers for the ostensible purpose of trading primarily foreign currency futures
personal and luxury expenditures.
When soliciting the funds initially,
certain investors who inquired about the value of their accounts, Defendants also made
materially false statements about their experience and track record, sent fraudulent
and made other blatant misrepresentations and falsifications.
corporate Defendants comprise eight interrelated companies: Frecom Technology
Corporation, a Delaware corporation, Shelaley Holdings, LLC
These entities together constitute a common enterprise
O'Neill and the Orca Common Enterprise are collectively "the
purchased with those funds, have been transferred to relief Defendants Danielle O'Neill,
trading primarily foreign currency futures contracts.
portion of investors' funds, sustaining an overall net trading loss of around $487,000.
over a period of 45 days (accompanied by business colleagues and a high-priced call girl)
their accounts, including at least one account statement that was entirely fabricated using
brokerage firms, when those firms in fact were only corporate accommodation addresses
claimed to have hundreds of millions of dollars under management,
He further made material false statements about the Defendants' trading track record.
compel their compliance with the Act.
The Commission also seeks civil monetary
Momentum began soliciting customers in or around May
common enterprise was marketed at times as a "hedge fund."
foreign currency that is a contract of sale of a commodity for future delivery,
or b) $5 million and who enters the transaction to manage the risk associated
Fraud And Deceit By Means of Misappropriation
willfully made or caused to be made materially false reports or statements thereof by
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