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must be executed through an FCM which is a member of an exchange.
Since Hunter was not a member or clearing member of the Commodity
Exchange of New York (COMEX) or the International Money Market
(IMM), Hunter was not authorized to execute gold futures con-
tracts on the floor of either exchange. Accordingly, Hunter
contracted with A.G. Becker, Inc., a clearing member of the
exchanges, to execute and clear the gold futures transactions
involved herein.
Hunter delivered promotional literature to prospective
clients. A majority of the promotional material was devoted to
showing clients the "significant tax advantages" they could
obtain through the Hunter investment program.
Most of the "Questions and Answers" portion of the Hunter
promotional material relates specifically to tax benefits that
can be received by participating in the Hunter program. Specifi-
cally, the materials state:
3. Can I lose my investment?
Yes. As with any investment, the risk of loss is
commensurate with the opportunities for profit.
However, the opportunity for profit can be con-
siderably enhanced, and the risk of loss substan-
tially reduced by the proper choice of alternative
methods of liquidating your contracts.
* * * * * * *
8. How can the probability of gain be increased by
choice of liquidation methods (?) (See #3)
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