U.S. Commodity Futures Trading Commission v. Garcia et al

Filing 48

ORDER denying 32 Defendants Dorian A. Garcia, DG Wealth Management, Macroquantum Capital LLC, and UKUSA Currency Fund LP's Motion to Stay this Action for 45 Days. Signed by Judge Sheri Polster Chappell on 5/21/2015. (LMF)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
FORT MYERS DIVISION
U.S. COMMODITY FUTURES
TRADING COMMISSION,
Plaintiff,
v.

Case No: 2:15-cv-237-FtM-38CM

DORIAN A. GARCIA, DG WEALTH
MANAGEMENT, MACROQUANTUM
CAPITAL LLC and UKUSA
CURRENCY FUND LP,
Defendants.
/
ORDER1
This matter comes before the Court on Defendants Dorian A. Garcia, DG Wealth
Management, Macroquantum Capital LLC, and UKUSA Currency Fund LP's Motion to
Stay this Action for 45 Days (Doc. #32) filed on May 6, 2015. Plaintiff U.S. Commodity
Futures Trading Commission filed a Response to Defendants' Motion to Stay (Doc. #38)
on May 11, 2015. The undersigned held a hearing on May 13, 2015, at which time the
parties argued their opposing positions on, among other things, Defendants' Motion.
(Doc. #42). The matter is now ripe for review.

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BACKGROUND
On April 14, 2015, the Commission commenced the instant civil action against
Defendants under the Commodity Exchange Act (the "Act"), 7 U.S.C. §§1 et seq., and its
corresponding regulations, 17 C.F.R. §§ 1 et seq. (Doc. #3). Approximately two weeks
later, Defendants learned that the United States Attorney's Office for the Middle District
of Florida is also investigating Defendant Garcia for criminal offenses based the same
facts alleged in the instant Complaint. Armed with that knowledge, Defendants now move
to stay this action for forty-five (45) days, arguing the stay will allow them adequate time
to evaluate this case and to explore a global resolution of this action and the parallel
criminal investigation. (Doc. #32 at 1-2, 4, 6). The Commission counters that there are
no circumstances to justify a stay, and that a stay will unduly prejudice the Commission
and the public investors who Defendants allegedly defrauded.
DISCUSSION
A party seeking to stay an action must "make out a clear case of hardship or
inequity in being required to go forward." Landis v. N. Am. Co., 299 U.S. 248, 254-55
(1936); see also Clinton v. Jones, 520 U.S. 681, 709 (1997) ("The proponent of a stay
bears the burden of establishing its need."). Upon a sufficient showing, a district court
may exercise its inherent authority to stay an action. See Landis, 299 U.S. at 254-55.
Upon consideration of the parties' written and oral arguments, the Court finds that
Defendants have not shown how a stay will meaningfully benefit the parties, the Court, or
the public at large. To date, the United States Attorney's Office has neither charged nor
indicted Defendant Garcia with any criminal offense, and there is no evidence beyond
Defendants' hopeful representations at the hearing, that such circumstances will change

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in 45 days. In addition, the Commission and the investors in Defendants' alleged "Ponzi"
scheme will suffer substantial prejudice and harm by a stay because the Commission will
be unable to continue its search for recoverable funds and additional victims. Even
without a stay, there is no reason why Defendants cannot continue to evaluate and
resolve this case along with the parallel criminal investigation.
Accordingly, it is now
ORDERED:
Defendants Dorian A. Garcia, DG Wealth Management, Macroquantum Capital
LLC, and UKUSA Currency Fund LP's Motion to Stay this Action for 45 Days (Doc. #32)
is DENIED.
DONE and ORDERED in Fort Myers, Florida this 20th day of May, 2015.

Copies: All Parties of Record

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