Advertisement
YOU ARE HERE: LAT HomeCollections

California | SOUTHLAND FOCUS

2 Web Site Operators Accused of Deception

September 28, 2000|Bloomberg News

Federal regulators accused two Orange County Web site operators of lying to customers about their backgrounds and trading history to lure investors to their online course on trading commodity and stock options. The Commodity Futures Trading Commission contends in a lawsuit filed Tuesday that Rabb Sabin of Silverado Canyon and Art Smith of Orange fraudulently represented the profitability of their trading methodology and acted as unregistered commodity advisors. Sabin and Smith operate Westar Financial Services and a Web site called the Cash Nursery, the agency said. The commission has warned the public about get-rich-quick schemes touted on the Internet and has filed 15 cases against Web site operators over alleged false claims. Sabin, 53, denied having defrauded investors, saying he changed misstatements that had been posted earlier on the Web site. Moreover, he said his trading system is successful for the majority of students in his course. Smith, 55, could not be reached for comment. "I like helping people. I'm not here to rip them off," Sabin said in an interview. "If they follow all the trading rules, they will make a profit."

Advertisement
Los Angeles Times Articles
|
|
|