RELEASE: PR6031-11

May 2, 2011

CFTC Sanctions New York Resident Howard Winell andHis Companies, Winell Associates, Inc., and MaxiePartners GP, LLC, More than $5.2 Million for FraudCFTC order permanently bans respondents from CFTCregistration.Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today filedand simultaneously settled charges against Howard Winell, Winell Associates, Inc. andMaxie Partners GP, LLC (Maxie GP), all of New York, N.Y. The CFTC order finds that therespondents engaged in unauthorized trading and misappropriated funds in connection withoperating a commodity futures and options pool.

Specifically, the CFTC order finds that, commencing in 2005, the respondents solicited andpooled approximately $20 million from approximately 25 pool participants to tradecommodity futures and options on commodity futures through a commodity pool namedMaxie Partners LP. In May 2007, one of the pools largest participants made a request toredeem its approximately $7 million. According to the order, the respondents segregated the$7 million to meet the participants redemption request, but, before making the redemption,the pool sustained significant losses and had margin calls of approximately $4 million issuedby Futures Commission Merchants holding the pools trading accounts. The order furtherfinds that to meet the margin calls and continue trading, Winell transferred approximately $7million, the participants segregated funds, back to the pools trading accounts. Through themargin calls and trading, the respondents lost approximately $3.8 million of the participantsfunds. The order concludes that the respondents misappropriated a pool participants fundsand engaged in unauthorized trading.

The order requires the respondents jointly and severally to pay restitution of $3,740,277.37and a $1.5 million civil monetary penalty. The order also imposes permanent trading banson the respondents (with a limited exception) and permanently bans them from CFTCregistration.

The CFTC Division of Enforcement staff members responsible for this case are Timothy M.Kirby, Kevin K. Batteh, Gretchen L. Lowe and Vincent A. McGonagle.

Media ContactsDennis Holden202-418-5088

Last Updated: May 2, 2011

CFTC Sanctions New York Resident Howard Winell and His Companie... http://www.cftc.gov/PressRoom/PressReleases/pr6031-11

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