- 17 - Petitioner, as a participant in the Hunter gold futures spread program, would have been required to sign the following Hunter forms: (a) New Account Application; (b) Account Agreement and Risk Disclosure; (c) Risk Disclosure Statement; and (d) Current Policies and Fees, setting forth the commissions and fees payable by petitioner to Hunter. Petitioner testified that it was normal practice in his business to keep copies of signed documents. However, at trial, petitioner could not provide signed copies of any of the Hunter documents listed above. Petitioner's initial commodity positions were created on December 1, 1980, when he made the investment. Petitioner paid an initial deposit of $178,500. Out of his initial deposit, petitioner incurred the following costs: Legal fee $3,500 Management fee 35,000 Commission to establish initial spread positions 17,500 Total costs 56,000 Thus, petitioner's initial margin was $122,500 ($178,500 - $56,000). Petitioner's trades with Hunter were initiated by FAX, Inc. (FAX), a registered trading adviser. In order for FAX to initiate trades between petitioner and Hunter, petitioner would have been required to sign both an "Investment Advisory Agree- ment" and a "Special Power of Attorney" authorizing FAX to tradePage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011