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by Mike Caswell

Ontario's Jonathan Cartu, facing civil charges in the United States for a $165-million option scheme, denies that he did anything wrong. (All figures are in U.S. dollars.) The Commodity Futures Trading Commission claims that Mr. Cartu and others ran an offshore options scheme that promised returns as high as 85 per cent. The subsequent trades, however, were rigged against investors, the CFTC says.

Mr. Cartu's denials are contained in an answer that he filed on Monday, Oct. 23, in federal court in Texas. The document is 20 pages long, but it contains few details. In response to almost every allegation against him, Mr. Cartu either makes an outright denial or he denies having "knowledge and information" sufficient to formulate a response.

Mr. Cartu does give some hints as the strategies his lawyer might employ, with the answer stating that the case is barred by the statute of limitations and by the CFTC's "lack of standing." (Translated from legalese, this means that the CFTC filed the case too late and does not have jurisdiction over the matter.) Mr. Cartu also casts at least some blame on others, saying that the CFTC's case is barred "by the acts and omissions of the CFTC and/or Cartu's co-defendants."

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