1. News & Issues

Your suggestion is on its way!

An email with a link to:


was emailed to:

Thanks for sharing About.com with others!

Government Warns of Iraq War-related Scams
War will not bring huge commodity profits, watchdogs warn 
 More Resources
Consumer Resources

Product Recalls and Warnings

Timeline to Possible Iraq War

Cost Estimates of Iraq War

War on Terror - Articles and Headlines

Homework Helper

Jobs - Federal
Jobs - State

Advertise your business, service or opportunity in our classifieds section
 Books and Videos
Compare Prices and Buy Online

Government Related Best Selling Books

Books on US Presidents

Books on Congress and Government

Books on the US Constitution

Videos for Learning About US Government

Books on Student Loans and Grants, and Money Management

Books on Gun Control 

Flags and Patriotic Gifts
  From Other Guides
• Commodity Investing for Beginners

Terror's Links to Organized Crime

Terrorism and Globalization

Can Liberty Survive Terrorism?

Missing Children and Adults - Help Find Them
 Money Resources
• Money for a Small Business

Small Business Grants? The States Have Them

Unclaimed Money: Find and Claim It

Government Aid & Money – No Grant Needed

• U.S. Government Grant Information Sources

Getting Into College - Financial Aid

New: Books on Student Loans and Grants, and Money Management

Are You Eligible for Federal Aid?

Patents, Copyrights and Trademarks

More Money & Financial Resources
 Elsewhere on the Web
• Scams Related to 9-11 Attacks and the War on Terrorism

• CFTC Consumer Information Bulletins

Commodity Exchange Act

All Commodity Futures Trading Laws & Regulations

Dateline: 11/19/02

Even as the timeline to a possible war with Iraq ticks down, the U.S. Commodity Futures Trading Commission (CFTC) is warning consumers of companies making bogus claims of profits from commodity futures and options trading based on the possible effects of war.

According to the government watchdogs, the suspect companies lure consumers into investing by claiming that a war with Iraq will drive up future prices of heating oil, gasoline and other expendable commodities.

Too Good to be True, Usually Is
In reality, warns the CFTC, the sales pitches are false. "In reality, the prices of commodity futures and options contracts already take into account all known or predictable market conditions, such as changes in demand for a commodity or known shortages of a commodity or problems in production or delivery of that commodity due to major events in the world."

Warning Signs!
The CFTC issued this Advisory after receiving several reports of companies attempting to take advantage of the extensive media coverage of the Iraq situation. Consumers are advised to watch for the warning signs listed below, and to take precautions before placing their funds with any company that offers leveraged or financed commodity transactions:

  • Avoid any company that predicts or guarantees large profits because of well-known current events, published reports or predictable, seasonal changes in demand.

  • Stay away from companies that promise little or no financial risk.

  • Carefully scrutinize unsolicited phone calls and e-mails about investments, especially those from out-of-state salespersons or companies with which you are unfamiliar. 

  • Be wary of high-pressure efforts to convince You to send or transfer cash immediately to the firm via overnight shipping companies, the Internet, by mail, or otherwise.

  • If you are suspicious, contact the CFTC, the National Futures Association, your state attorney general's office of consumer protection, or the Better Business Bureau prior to trading.

  • Be sure you get written documentation about the product, the company, and its track record, in order to verify the data. 

  • If you can, before doing business with any company, check the company's materials with someone whose financial advice you trust 

  • If in doubt, do not give money to anyone. If you can't get solid information about the company and the investment, you may not want to risk your money.

If You Have Been a Victim
Consumers who believe they are aware of, or have been the victim of individuals or firms operating in violation of the antifraud or other provisions of the Commodity Exchange Act, should file a customer complaint through the CFTC's Reparations Program

The CFTC Reparations Program resolves disputes between commodity customers and commodity professionals. Through this program, you may be able to institute "reparations" proceedings against commodity professionals registered with the Commission if the individuals or firms allegedly violated the antifraud or other provisions of the Commodity Exchange Act.

Consumers can also contact the CFTC directly via national and regional telephone numbers and office address available at Web address: http://www.cftc.gov/cftc/cftccontacts.htm

About the CFTC
The Commodity Futures Trading Commission (CFTC) was created by Congress in 1974 as an independent agency with the mandate to regulate commodity futures and option markets in the United States. The agency protects market participants against manipulation, abusive trade practices and fraud.


Subscribe to the Newsletter


©2015 About.com. All rights reserved.