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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U NI TED STATES DI STRI CO URT CT SO UTI ER N D I I STR I O F FLO R I CT DA M IA M I DIV I N SIO CA SE N O .1 22739- V - N G 4C1 Kl U . CO M M O DI FU TURES TRAD I S. TY NG CO M M I ON , SSI Pl n if aitf, S HE T TMET Y I , OUT RN RUS AL NC. LO RELEY O V ERSEA S CO RPORA TI , ON a RO BERT ESCO BI , nd O Def nda s e nt . / 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 a ng si s t t .) to or de o ' us e nt c o Shoul NotBeHed i ContmptofCo t( /1 ) fld Marh 31,201 aswela Unie d l n e ur DE / 95 , ie c 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 (s c o' ,or rnghi t pa wihi tn d $2,03, 7. i r tt i a a$357, 00 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 co o houl l n 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 . c o es 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 h he e tt i 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 h C ' FDCPA' .Acc di l Es obi ague t tt Cour i poweres t hol hi i c e f ' ) or ngy, c o r s ha he ts l s o d m n ontmpt or fiigt p ytej d me t a r q ie b isFia J d me t aln o a h u g n s s e urd y t n l u g n . hi e s xhausi tve, t oughl r ea c d, a hor y es r he nd wel- itn i tal Re r a lwrte nii po t nd Re omme ton ( /2l1,J e Tore c ude t t a t t r tt i a r i ed e ndai DE / ) udg rs oncl d ha, s o he esiuton wad mpos by t Cour ' Fi lJ he ts na udgm e : nt Th CEA gh Co dte Ex ha e Ac) e c mp se b o d e u tbl e t e mmo iis c ng t n o a s s r a q ia e r siutona y r medi ,whi h r m e est Congr s r cog ze woul i ude e tt i r e es c e di he e s e ni d d ncl a1ne s a y e t bl powe s a whih woul tadii ly i l t powe 1 ce s r quia e r , nd c d r tonal ncude he r ofc e .The CEA cla l di note l s h a r m e fom t oper ton ont mpt e ry d xcude uc e dy r he ai o t e saue tus a mo e j d me t u d r t e CEA t a icu e a f h ttt, h , ny u g n n e h h t n ld s r tt i r r medy ma be e or d t ough t co e esiutona y e y nf ce hr he nt mptpowe i ne s a y. r f ce s r And,be a e t FDCPA e l c us he xcudes fo is umbr l a ot f r 1 t t rm t ela ny her ede al aw ha gi s r s t a c e ptr m e Es obi c nnot de e t Pl ntf ' r g t s e a ve i e o ont m e dy, c o a f a ai if s i ht o e k 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 S i houl an e ns a s t s eks t i e o nvoke t Cour' c e 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 . Howeve ,a t t ci lmone a y pe ly i 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 #. , 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. N # ' 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 GE

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