U.S. Commodity Futures Trading Commission v. Southern Trust Metals, Inc. et al

Filing 227

ORDER Adopting Magistrates Judge's Reports and Recommendations. Signed by Senior Judge James Lawrence King on 9/1/2017. (jw)

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O RDER A DO PTI G M AG ISTR ATE JUD G E'
N
S
R EPOR TS AND R EC O M M ENDA TIO NS
THI CAUSE c e bef e t Cour Pl n if Unie St e Commodiy Fut e
S
om s or he
t aitf
td ats
t
ur s

Trdi Commison' (he%CFTC''M oin f Or rt Show Ca e W hyDefnda Es obi
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us
e nt c o

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d
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ur DE / 95 , ie
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7,
l s td
Stts M a itae J
ae
gsrt udge Edwi G. Tore ' Re t a Re omme ton ( #211 a
n
r s por nd c
ndai DE
) nd
S eme a Re ta Rec
uppl ntl por nd ommendai ( #223)r e
ton DE
e omme ng t tt CFTC' Moton
ndi ha he
S i
b g a e i pa t and de ed i par. The Cour ha a tonaly c i r t vol i
e r nt d n r ,
ni n
t
. s ddii l ons de ed he um nous
t

Elngs oft pa tes conssi of t r pons s a r ple t t CFTC' M oton, a t
fi
i
he ri ,
itng
he es e nd e is o he
S
i
nd h4

o j ci n t te Re o t a d Re o n ain ,r s o e a r pist eeo a wela t e
b e to s o h p rs n c mme d to s ep ns s nd e le h rt , s l s h
s plm e t lau hort fld durng t pe nc oft e m at r . lUpo eonduc i a de no
up e n a t iy se
n
tng
vo
i he nde y hes
te s

' DE 200, 204,206,207,21 21 21 21 222,
see
3, 4, 5, 8,
224,
225, 226.
and
l

r vi of t r c d,t Cour c l es t tM ag sr t J
e ew
he e or he
t onc ud ha
i t a e udge Tor es R& Rs accur el st e
r '
at y at
t l w a f c soft c e.
he a nd a t
he as
On A ugus 29,201 t Cour e e e Fi lJ
t
6 he
t nt r d na udgm e aga ns Def ndan Rober Es o
nt i t e
t
t cobi

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i obi ' dei m o y t n e ays 1 61 00 n esiuton nd
Es
)
032.
cvi m o t r pe t To dat Es obi hasonl ma a sngl payme of$500. t r hi
i l ne a y naly,
e, c o
y de i e
nt
00 owa ds s
r tt i oblg i a ha ma no payme t r hi cvi m one a y pe ly.On M a c
esiuton i aton, nd s de
nt owa d s i l
t r nat
rh
21 201 t CFTC m ove f a Or r t Show Caus why Es bi s d notbe he d i
, 7 he
d or n de o
e
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c e
ont mpt f f ii t pa a r quie by t Cour' Fi l J
or a lng o y s e r d
he
ts na udgment Es obi r ponde
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d,
a g ng t t t CFTC' M oton l e d l l ba i bec us i hi vi ,bot t r s iuton
r ui ha he
S
i a ke ega s s a e, n s ew
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a r a d t e cvlp n l ae S n y j dg n s'a te e cu i e me n a albe t t e
wad n h ii e at r k e u me t' nd h x lsv a s v ia l o h
y
mo
CF f r c le tn o te j d me t i te Fe ea De t Co lcin P o e u e Ac ( e
TC o o lcig n h u g n s h d r l b le to r c d r s t t
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'
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fiigt p ytej d me t a r q ie b isFia J d me t
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hi e
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nd wel- itn i tal Re r a
lwrte nii
po t nd

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e
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nt

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t e mmo iis c ng
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es
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ai

o t e saue tus a mo e j d me t u d r t e CEA t a icu e a
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ny u g n n e h
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r tt i r r medy ma be e or d t ough t co e
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r f ce s r
And,be a e t FDCPA e l
c us he
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ve i e o ont m
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e e ptr m e ba ed on t FDCPA ' ge r lcolec i pr vi i .
ont m e dy s
he
S ne a l ton o s ons

Ac or ngy,J
c di l udge Tore c l d t tt CFTC' M oton s d be gr t d i of r a i
r s oncude ha he
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i houl
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e
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he
ts ont mpt po r t e or e t r tt i awa d i
we s o nf c he esiuton
r mpos d on
e
Es o i t Fi lJ
cobi n he na udgm ent
.

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r s o he vi
t r nat mpos d by t Cour' Fi lJ
e
he
ts na udgm e ,J
nt udge

Tor s c n l d d t t s c p n l e ae lg l i n tr ,a d kli e mo e d ma e ,te
re o cu e ha u h e at s r e a n au e n ' jk
i
l
ny a gs h
e or m entofa c vi m one a y pe t by c em pt woul . ..r af of El ent Cic t
nf ce
i l
t r naly
ont
d
un oul
ev h r ui

p e e n i Co sg.R an' Co Co,7 5F.d 9 0 ( 1t Ci.l 8 ) a d L .v1Br de
rc de t n mb v y s al . 8 2 7 1 h r 9 6 1 n US . a ly
g F.d 1 3 ( 1h Ci.2011q' Ac di y,J
644 3 2l 1 t r
). cor ngl udge Tore c ude t tt CFTC'
'
rs oncl d ha he
S
M o i s d be deni d t t ex e i s e t i
ton houl
e o he t nt t e ks o nvoke t Cour ' c t m p powe st e or e
he
ts on e t
r o nf c
t ci lm one ar p ly i pos on Es o by t Cou tsFi lJ
he vi
t y ena t m ed
cobi
he
r ' na udgm en .
t

S to
cobi ie
Es e i l r - r ui hi pos ton i br ei on t CFTC' M o i n,Es o fld
s ntaly e a g ng s
ii n i tng
he

obeci t t i ta Re t a Rec
j tons o he niil por nd
omme ton ( #21 . Es o t n fld as
ndai DE
3) cobi he ie
s pplmen a a hort t Unie St tsSupr me Co tsr c ntopi onsi SEC v Kok s 1
u e t l ut iy he td ae
e
ur ' e e
ni n
. e h, 37

S.Ct l 3 ( 01 )a d Ca f r i Pu .Emply e ' t k A l ANZ S c I c,l 7 S. . 0 2
. 6 5 2 7 n l o na b
o e s Re.v ' '
y. r
e . n . 3 Ct 2 4
( 7) bot ofwhih wee de i d atrt i talR&R wa e erd.Es bi aguedt tt
201 , h
c r cde fe he nii
s nt e co o r
ha he
Kok s de s on r nde ed i ald J
e h ci i e r nv i udge Tor es c l i t t r s iuton a a d i e t e
r ' onc us on hat he e tt i w r s quiabl ,

h n e s be tt e o c me tb c ne t An i ANZ,t eCo r i v ld td a c r-r ae
e c u j c o nf re n y o tmp . d n
h u t n aiae ou tce td
eq tbl t lng r e f s fcsa ut oflm ia i whe et tsat e sexplcttm e ba ma
uia e oli ul or pecii tt e i ttons
r ha t ut '
ii i - r de
cla t r wa no r
e r he e s
oom f t lng ofa ki Es obi a gue t tt saut y s he e i t
or oli
ny nd. c o r d ha he t t or c m n he
xpr s xc pton lo ng or e
tm
r o nf c
FD CPA co a ne no e e s e e i a l w i f us of con e pt pow e s t e or e
nt i d
r tt i awards.
es iuton

l lght oft s s e e ala hort w hi h w as notavaia e untla ï r J
n i
hi uppl m nt ut iy, c
l bl
i t e udge Tor es
r
i s d hi i talR& R,t Cour die t d t tJ
s ue s nii
he
t r c e ha udge Tor es c i r t s e e a a ho iy
r ons de he uppl m nt l ut r t
3

a is as plment R&R ( E #221 .J e Tore c i rd t s e nalauhort
nd sue up e al
D'
) udg
rs onsdee he upplme t t iy,
a i hi Supplme alR&R ( '#223)c ude t tEsobi sagume st ron ta k a
nd n s
e nt
DE
,
oncl s ha c o' r
nt hee i c ny
l
m ert5
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l

Es o i t e fld hi o j cin t tes p lme tlR&R ( * 2 )a an r -r un
c bo h n ie s be to s o h u pe na
DE 2 4 g i e ag ig
hi pr vi l a gue postons Es obi a s as i t ale ai t t s d t Cour entr
s e ousy r d ii , c o lo ked n he tm tve ha , houl he
t e
a Or rafimi a a i t R& Rs t tt Cour c riy a s h Or rf i e ae
n de fr ng nd doptng he
, ha he
t e tf ny uc
de or mm di t

a lunde 28 U. C.j l b)t bec i rd byt Unie St esCic tCou tofAppe l
ppea
r
S.
292( o onsdee
he td at rui r
a

f te Elv nh Cic i ao g wi hsc re ty p n i a pe lo te u d ry n j d me i
br h e e t rut ln t i u rnl e dng p a f h n eli g u g nt n
h
t s m at r The CFTC oppos s h c tfc ton a pr m aur a pot nta l unnec s ar
hi
te .
es uc erii a i s e t e nd
e ily
e s y,
bec us afimi a a i t R&Rs i no a fndi of c e pt r t r a e de i y
a e fr ng nd doptng he
s t i ng
ontm ; a he , n vi ntar
hea i wilbe r quied t m a s h a fndi l Es bi i f
rng l
e r o ke uc
i ng. f co o s ound t be i cont
o
n
emptf hi
or s

non- yme oft r tt i a r t tOr rwoul be a fnalo de a Es obi coul tke
pa nt he esiuton wa d, ha de
d
i r r nd c o
da
a a
n ppea f om t t
l r ha .

T Co r h s c n ie e te Mo in , J d To r s R&Rs a te o j cin ,
he u t a o sd r d h
to s u ge re '
, nd h be to s
r s ns s a r i t r t a concl s t t R& Rs cont n a t ough a w e l
e po e nd eples he eo, nd
ude hat he
ai
hor
nd lr one r
eas d ccom m endaton f gr i i par,a denyi i pa t CFTC' M otoh.
i or antng n t nd
ng n rt he
S
i
J
udge Tores ca ef l consde e t r d, exha tvel anal ed t l w on t
r
r uly
i r d he ecor
us i y
yz he a
h<
Cour ' a hort t hol a def
ts ut iy o d
bndant i cont
n
empt f f ii t pay bot a equia e
or a lng o
h n
t bl
r tt i aw a d and a l l ci l m onet y pena t a pr l concl
es iuton
r
ega vi
ar
ly, nd opery
uded t t
ha
cont pti a lbl f t f m er a i bared as a r edy f t l t r.M or
em
s vaia e or he or , nd s r
em
or he ate
eove ,
r

t Co ' fnds t a c rii ai f r i dit a a und r 28 U. C.9 1 92 b i
he ul i h t e tfc ton o mme ae ppe l e
t
S.
2 () s
i ppr i e i t pr entpr
na oprat n he es
ocedtr posur oft scas
tal t e hi
e.

Accor ngl upon a car ulr vi w oft r d a t Cour bei ot wie
di y,
ef e e
he ecor nd he
t ng her s
f l advied,i i O RD ER ED ,A DJU D GED,and D ECR EED asf l s:
uly
s ts
olow
1 M a sr t J
. git a e udge Edw i G.Tor es M a 15,2017 Re t a Recom m endaton
n
r ' y
por nd
i

( #211 ,a wela hi J y 6, 7 Su e n a Re r a Re o nd to
DE
) s l s s ul 201 pplme t l po t nd c mme ai n
( #2 be a t s mea eh r by AFFI ED and ADOPTED.
DE 23) , nd he a r e e ,
RM

Es o o' Obe to t t R&Rsaehee yOVERRULED.
c bi s j cins o he
r rb
3. The CFTC ' M oton f Or ert Show Ca e W hy Def nda Es obi Shoul NotBe
S
i or d o
us
e nt c o
d

Hed i Cont
l n
emptofCoul ( /1 i hee GRANTED wihr pe tt r siuton
' DE /95) s rby
t
t es c he ett i

a pe toft Cour' Fi J
s c he
ts nal udgment( #1 ) e eedAugus 29,201 By s ae
DE 67 , ntr
t
6. epar l
Or r t Cour s ls an e denta y hearng a w hi h Def
de , he
t hal et vi i r
i t c
endantEs o s l
cobi ha l
s
how ca e why he s d not be he d i cont m pt f hi f l e t pa t
us
houl
l n
e
or s aiur o y he
r tt i a a d as r r by t s Cour ' Fi Judgm ent
es iuton w r
equied
hi
ts nal
.
DONE a ORDERED i c m be s at t J m e Lawr nc Ki Fe r l J tc
nd
n ha r
he a s
e e ng de a usie
Buidi a Unie St t sCourhous ,M imi Fl i t s 1 tda ofSe embe 201
l ng nd t d a e
t e a , orda, hi s y
pt
r
7.
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A M ES LA W N CE K I G
N
I
TED STA TES D I
STRI J
CT
c
c:

M a s r t Judge Edw i G . or
gi t a e
n
A I counselof record
l

5

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