Unregistered CTA Fined, Barred

Feb 14 2007 | 11:04am ET

CTA-wannabe Gilbert Philip Castillo is finding out that it’s easier to actually register as a trading advisor than not. On Feb. 5, Castillo and his allegedly sham trading advisory practice, Castle Enterprise Corporation, were charged by U.S. District Court Judge Thelton Henderson in the Northern District of California with fraudulent solicitation of investors without registration.

From at least Feb. 1, 1999, through mid-2005, Castillo allegedly operated the WallStreetWar.com, CastilloResearch.com and Never-Lose.com Web sites and made fraudulent representations to the general public regarding his trading prowess. Investors allegedly bought into Castillo’s managed account programs, trading systems and training courses to the tune of more than $800,000.

Castillo was ordered to disgorge $814,000 in restitution and pay a $480,000 civil penalty. He is also permanently barred from engaging in any business activities related to commodity futures.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of