United States Commodity Futures Trading Commission v. Hunter Wise Commodities LLC et al

Filing 303

OPINION AND ORDER re Judgment in Favor of the CFTC. Signed by Judge Donald M. Middlebrooks on 5/15/2014. (jua) (Main Document 303 replaced on 5/16/2014) (ots).

UNI
TED STATES DI
STRI COURT
CT
SO UTH ERN DI
STRI OF FLORI
CT
DA
CASE NO . I 8I - M I
: Z- JII CV- DDLEBROOK SY M NNON
UNI
TED STATES COM M ODI FUTUM S
TY
TR ADI G COM M I ON ,
N
SSI
Pl n i f
ai t f ,
VS.

HUN TER W I CO M M O D I ES,LLC,e al,
SE
TI
t .
D ef
endant
s.

O PI O N AN D O R D ER
NI

THI CAUSE c e bef e t Cour f fnaldiposton oft i s spr e e durng
S
om s or he
t or i
s ii
he s ue es nt d i
a be h t i l hel f o Febr r 26, 201 t ough Fe ua y 28,201 a M r ch 3, 201
nc r a
d rm
ua y
4 hr
br r
4 nd
4.

Pl ntf Unie Stt Commodiy Fut e Tr di Commison (I
ai if td aes
t
urs a ng
si C
CFTC' alges t
' le
)
hat
Dee t1vi ltds vealsci oft Commodiy Exc
fndans oae e r e tons he
t hangeAc (he1 t',7U. C.j1,
t t i ') S.
Ac
e s q. a a nde by t Dodd- a W al Ste t Re or and Consu r Pr eci Ac
t e , s me d
he
Fr nk
l re
f m
tne ot ton t

(1 0dd- a 'za CFTC Re ai .The tili t smatrf us d prmaiy on Huntr
$D Frnk'l nd
gultons
ra n hi te oc e i rl
e
W ie, M r J ge ,a M r M a tn, whom t CFTC a s t 1d a comm odii s s he t t
s
. a r nd . ri
he
s ers e
te c me ha

lForpup os soft sOr r lD e e nt ' c itoft Entt D e e nt ,w hi h a e H unt
hi de , t f nda s' ons s
e
he iy f nda s
c r
er
W ieComm odii ,LLC,
s
tes
Hunt rW ie Se vies LLC,Hunt rW ieCr di,LLC,a Hunt
e s r c ,
e s e t
nd
er

W ieTr ng,LLC,(ole tvel S- trW ie',C. Hopki Fi nci ,LLC a HadAse
s adi
c lci y,ll e s ' D.
lun
)
ns na al
nd r st
Le dngGr u LLC, c l ci l,t Ho kn ', a k t n M easGr u ,
n i o p,
( ol t y û
e ve CD p is) Blc so e tl o p LLC,
CBlc so e', wb i g Alin e l c, ç wb i g ', ie S ae Ca ia Tr s,
i a k t n ' Ne rd e la c , n .(i rd e' Untd tts ptl u t LLC
)
Ne
)
(I
I
USCT' a Ll Commodiis LLC, oydsCommodii Crdi Compa LLC,Ll
' nd oyds
)
te ,
Ll
tes e t
ny,
oyds
Sevies LLC,(ole tvel l -oyds'a wela i vi lDeenda sDa dA. oor
rc ,
c lci y,t l ' s l s ndi dua f nt vi M e,
t
)

Cha w i k Hopki ,Ba i Kes r J hn K i H a ol Edw a d M a tn J ,a Fr d J ge .û e l r
de c
ns r s e , o
ng, r d
r
r i r nd e a r ç a e
D
D ef nt ' r e s t CD H o ns Bl cks one N e brdge, U SCT.
enda s' ef r o
pki , a t , w i and
2 A sdi c s d i m or det i bel , Dodd- a bec me e f ctveon J y 1 2011and g a ed
s us e n
e a l ow
Fr nk a
fe i
ul 6,
r nt
t CFTC ne a hort ove ce t n l r ged,ma gi d,orfna e comm odiy ta a tons
he
w ut iy r rai eve a
r ne
i nc d
t r ns c i
w ih r t i c t e s i udi a hort t pr bi f a i c
t e a l usom r , ncl ng ut iy o ohi t r ud n onne ton w ih s h ta ac i
ci
t uc r ns tons
i i er at com m er
n nt st e
ce.

$(h))E
.1)
1

i ve mir pr e i t na u e ofpr ci m ea s ta
nvol d s e es ntng he t r
e ous tl r
ns to wih r t i c t m e s a
aci ns t e al uso r 3 nd
t tr uled i l s st alng m ilonsofdolar .4
ha es t n os e ot i
li
l s
Thi O pi o cons iut s t Cour ' fndi of f c a conc usons of l pur ua t
s ni n
tt e he
ts i ngs a t nd
l i
aw
s nt o

Fe a Rul ofCi lPr ed e 52() Al propos indi of f tand concl i of 1w
derl e
vi oc ur a l
ed
ngs
ac
usons
a
.

ic n itn wi t o es t o t heena erj ce
n o sse t t h s e f rh ri r ee td
h

.

1
.

FACTUAL BACK GROUND
Hunt W ieç nve t sa e notpl ye si t c sno, i t a t y own t c sno
er s ç sor r
i
a r n he a i nse d he
he a i

. . . .

Put

a he wa ouri ve t sa e notbe tng on t hores
not r y,
n sor r
ti
he s '
,

weownt r eta k Ei) Thepoi i
he ac r c sc.
nt s

3A ç eai cus om e ' i a non- elgi eco r c pa tc pa An i i i e c r tpari pa '
t t l t r's
r
i bl nta t rii nt
t g bl ontac tci nt'
el
.
m e ns i peri ntpa t
a , n tne
r:

( aci f isowna ountA) tng or t
cc

( ) a i vi lwhohasa
xi n ndi dua
mount i t onadic ei r bass t
s nvesed
sr tonay i, he
agg egae ofwhih i i exc sofr t
c s n es

()
l

$1 000, or
0, 000;

(1 $5, 000a whoe esi ot a e me , contac,ortansacton
1) i 000, nd
ntr nt he gr e nt
r t
r
i
n or rt ma get rs a s a e wih an a s towne orla lt
de o na he ik s ocit d t
se
d ibii
i ure orr s na y lkey t beowne ori ured
nc r d
y
ea o bl i l o
d nc r , byt
,
i
he
ndi dua
vi l

7 oS. j a( 8)A)xi. r f e a eaicusome s ndi dua
a U. C. 1 1 ( ( ) The eor, rt l t ri ani vi lwhodoesno ha
m
t ve
unt i sed o adic e i r ba i, t aggr ga eofwhih exc eds$1 milon
s nve t n s r tona y ss he
e t
c
e
0 li , or$5
m ilon i t i vi ualent r i o t tansadi n i or rt managet rs ass i t
li f he ndi d
e s nt he r
o n de o
he ik oc a e wih an
as e om
st
d t
w d o la lt i ur e , orr s na y lke y t be ow ne ori ur e by t i vi
r i biiy nc r d
ea o bl i l o
d nc r d,
he ndi dual
.
1
d.
4L1 ds Com m odii s LLC Ll
oy
te ,
oydsComm odii sCr di Compa
te e t
ny
,
Ll
ri s
LLC,M r Bur ge, M r Ga no s te t c ai sa ns t m ,a
. ba and . udi etl d he l m gai t he LLC, oydsSe vce ,
nd on Fe ua y 5 201
t
h
br r , 4,
,
t ee
de DE
N e Cour ent r d a ConsentOr r. ( 254) TheCour aloe erdaConsntOr rast ( )
.
t s nt e
e de o: 1
e dge nd . ng DE 9) nd 2)
wbr
nd
ent i a M r Ki ( 28 a ( USCT a Mr M oor ( 288) TheCo ts l
e DE
.
ur hal
er e a lj d me t g is CD Ho isa dM r Hopki and Bl ksone and M r K es r
rd fut u g n a an t
pkn n
ns
ac t
unde
e
.

.

s pa ae Or .
e r t der

.

t w e c r t pr es , a sa t m a m one no ma tr wher t ma kes s f ,
hat
ontol he oc s nd t nd o ke
5
y
te
e he r t hit,
.

E- l fom J ge t Pa a Pang (une 1 20 8 ( TC Ex. 1 0 a 1 .Ths sae n
mai r a r o ndor
J
,
0 ) CF
8 t ) i ttme t
e bodi M r Ja ra M r M a tn' i e i ,t i u rt ndi ofwha Ht e W ie sood
m
es . ge nd . ri s ntntons her nde sa ng
t mt r s t
f ,a how t y, a Hunt r W ie i sor , pr he o t bac of a oxi t l 3
or nd
he nd
e
s nve t s of d n he ks
ppr ma ey ,200

r t i c t m e s who l tove $52 m ilon fom J y 16 2011 t ough Februar 25, 2013.I
e al uso r
os r
li r ul ,
hr
y
n
t i m i ,t y unr a ona ybe ive t t hous awayswi .
her nds he
e s bl le d hat he
e l
ns
4. The Casi -It O wner and It D eal s
no s
s
s
er

a

M r J r and M r M a tn' t a i 'w a a wel-plnne a e ut s heme de i
. age
. r i s t s no' s
c
l a d nd xec ed c
alng

wih fna ed, of- xc
t i nc
fe hange c modii ta aci
om
tes r ns tons t t t y or h
ha he
c
e ta e usng r t i
sr t d i e a l
c t r , t De l r De e
usome s he a e
f ndant, non- ry de l r , a me a s Supple s6 H unt W je'
s
pa t a e s nd t l
ir .
er s s
busnes mode r ve a ound t s ppos d buyi a s li ofpr c ous me a s i l ng
i s
l evol d r
he u
e
ng nd elng
ei
t l, ncudi
gol sl ,pl tnum , pa ldi ,a c
d, iver ai
la um nd oppe . H u e W i e c a m e t pur ha e a s lt s
r nt r s l i d o c s nd el he e
pr ci m e asfom s ver lSupple s
e ous t l r
e a
ir .
Huntr W ie wa orgi ly a Caior a lm ie labiiy compa sa td i J y 2007
e
s
s i na l
lf ni i td i lt
ny t re n ul
,
b i hasbe n a r git e Ne
ut t
e
e ser d vada lmie la lt c
i t d ibiiy ompa snce O cobe 201 l ma nt ns
ny i
t r 0. t i ai
busnes a es e i La Vega , N e
i s ddr s s n s
s vada a I v ne Ca iom i M r M a tn i t r git e
nd r i , lf a. . ri s he e ser d

age .He a M r J ge a e mana r a m e
nt
nd . a r r
ge s nd mber ofHuntrW ieCom modii
s
e
s
t
e .H unt r W i e
s
e
s
Comm odiis i t s e m e be ofbot Hun e W ie Cr di LLC a Huntr W ie Tr ng
te s he ol m r
h
tr s e t
nd
e
s adi ,
,
LLC .H un e W i e Co m odii , H unt r W ie Cr t a H unt r W ie Tr di al s r t
tr s
m
tes
e
s edi, nd
e
s a ng 1 ha e he

s me busne s a e s i La Vega and t s me m a lng a e s i Iv ne. H unt r W i e
a
i s ddr s n s
s
he a
ii ddr s n r i
e
s

5TheHuntrW iel nve t s' r Ja rme i do noti l t r t lc t r
e s t sor 'M . ge ntons
i
ncude he e ai usome s who
,
e e e i o Hu e W ie' pr c ousm eal ta a tons butt ewho i sed i HuntrW ie
nt r d nt nt r s s e i
t s r ns c i ,
hos
nve t n
e s.
6F
ft sOr r k
hi de , t
suppler' i l sA- a k Pr ci M etl
i s' ncude M r e ous a s

o pur eso
r pos
nc (ç r '
A)
, l . $ M ak'
StndadBa PLC (f a dBn ',a Nai sCommodiyM akesLt (s txi' . ,
a r nk,
lstndar nk' nd txi
)
t r t d ç i s'
Na
)
.

3

Se vce alo s r st lvi ma lng a es .7M r.M a tn a M r J rar t s em e be s
r i s s ha e he r ne ii ddr s
ri nd . age e he ol m r
a ma
nd nage s of Hunt r W ie Se vi e , LLC a a e t Chi f Ope a i Ofier a Chif
r
e
s r cs
nd r he
e
r tng fc nd
e
Exec i Ofi e ofHt e W ieSe vce , r s c i l Bot M r
utve fc r
mt r s r i s e pe tve y. h .

M a tn a M r J gert tfed
ri nd . a esii

a ti .
t ral

M r M ari ha t ry-i ye r of e re e i t pr i us m et s i ty
.
tn s hit tve a s
xpe i nc n he ec o
al ndusr

.

Hi
s

pr ci m e as e re e i l swor ng a M one Pr ci
e ous t l xpe inc ncude
ki t
x e o
us M etl ,f m e l Pa ii Coas
a s or ry c fc
t
Coi Exc nge Uni e Cr di Cor ai n, whe ehe wasi c r e ofbusnes de l e f
n ha , m t e t por to
r
n ha g
i s veopm nt or
t buyi s li , a tna i ofpr i m e a s8M r.M a tn f unde a waspr i ntof
he
ng, e lng nd i ncng
esde
ecous t l .
ri o
d nd
Ca t A s e , whi h w as i t busnes of buyi s lng, a fna ng c
pial s t
c
n he
i s
ng eli
nd i nci omm odii
tes
,
t a a tons t oug a ne w or of de e s. The de e s woul fnd c t e s a s t m t
r ns c i
hr h
t k
al r
alr
d i usom r nd end he o

Ca t As e .An outi i sore nt ly t r i t d hi fom t tc
pial s t
sde nve t ve ua l e m na e m r ha ompa Ca t lAs e
ny. pia s t
washi l s ve ur i c
s a t nt e n omm odiis untl2006, whe he a M r
te
i
n
nd

.

J ge decded t deve o t
a r i
o
l p he

busnes pln f HuntrW ie.
i s a or
e
s

M r J ge ha e re e i t s c ii ma ke a wel. Prort wor ng f Hunt r
. a r s xpe inc n he e urtes r t s l i o
ki or
e
W i e Com m odii , M r J ge r a co i
s
tes . a r an, nd ntnuest nm Hunt rW ie Se rte
o ,
e s cu ii s a s urte tr
ec iis im
,

t t i r git r d by t Fi ncil l ty Regult r Au hort M r J r put i t s d
ha s e se e
he na a ndusr
a o y t iy. . age
n he ee

ca t lf Hunt r W ie a he wa r s nsbl f r ii t e uiy ca t lf Huntr W ie
pia or
e
s nd
s e po i e or a sng he q t pia or
e
s

.

7l m yFe ua y 1 201 Or ron t Pari s M otonsf Sum ma yJ
n
br r 9, 4 de
he te ' i
or
r

2 4Or e ' ( 28 ) lf t tHt erW ieoper t asacom monunt r nseie rlr 1
01 d r' DE 1 ound ha mt
)
d me i(F b t y 9,
g tç
a
s
aed
e e pr
1 A lhough M r.M ar,n ran t busness' day
9) t
( 281a
DE
t
t
i
he i
s
.

.

t da ope a i ns M r J ge ' poston w ihi
o- y r t o , . a r s ii
t n
untrW ie de
e
s monsr t d t the ha knowldge ofand diecedt
ta e ha
d
e
r t he
ec
onom i as t oft
c pecs he
e iy. r or lf
ntt The ef e, ound t tM r M a tn a M r J ge c r ld Hunt W i e
ha . ri nd . a r ontole
er s d.
BAsdi
ri ntr , 1 nt
a e
s us e i f t rde a lbe o , duet aCons ntOr rM r M a tn e e ed i o bec us of
c s d n urhe t i l w
o
e
de
.
hi conduc a Uni e, M r M at wa p r n n l e j ie fom ma igmirp e e tto s
s
t t m t . ri s ema e ty n on d r
n
kn se rs n ain
a o itngdicl ur sr lt d t ma e i f c sr ga di i or a i n rel vantt a cus om er'
nd m ti
s os e ea e o t ral a t e r ng nf m t o e
d
o
t
s
e i i t e e i t a i s m e i c m odii s Se Cons ntOr a t De e nt E
c s on o nt r n o n nve t nt n om
te . e
e
der s o f nda s .
Keih Owe ,Ed M a tn, a EdM ye s CFTC Ex. 1 Fe r Tr Commisi v
t
ns
ri nd
r,
59, de al ade
s on . Uni t
Cr di C
e t
me
H

-

or , 9 5759( D. .De 20,1 .
p.No. 2C. Cal, c. 994)
4

Alhoug he ha no pror e re e i t pr ci me al i ty,M r J ge was c uc a t
t h
d
i xpe i nc n he e ous t s ndusr
.a r
r il o
Hunt r W ie' s ce s be us he pr de i
e
s s uc s ca e
ovi d mporan c ac s and dee ned t sr t gi
t t ont t
tnni
he ta e c
die i n oft com o ai a li pa t r hi wih M r M a tn.
r cto
he
r ton, 1 n rne s p t
. ri

l a ton, wo o he ke e pl st sii d d i t til Syl aW ila sa St ve
n ddii t t r y m oyee e tfe urng he ra : vi lim nd e
Fic M s.W ila s wa Hunt r W ie s Diecor of Ope ai .She r t die l t M r
t h.
li m
s
e
s' r t
r tons
epored r cty o .

M a tn. r Fic wa r ponsbl f i t racng wih t de l r .Heofe e deaertai ng a
ri M . th s es i e or n e f i
t he a e s
f r d l r ni nd
knew wha s r i es Hun e W ie of e e t t deae s Ac or ng t Hunt r W ie' r cor ,
t e vc
t r s f r d o he lr . c di o
e
s s e ds
Hun e W ie r eve r t i c t r fo ove 11 de e s.Sum ma y Exhi t- Hunt rW ie
t r s ec i d e al usome s r m
r 0 alr
r
bi
e
s

De lrLo sRe o t ( t Cu t me Na s b De lr(uy z lprs n l CFTC Ex. 7 Boh
ae s p rs wih so r me ) y ae J l ol - e e ts
6. t
e pl st sii d t Hunt rW i e sope ai i t co modii i ty.
m oyee e tfe o
e s'
r tons n he m
tes ndusr

On De e r 5,201 t CFTC fld t Co ai ( 1 i t i tnt a ton,
c mbe
2, he
ie he mpl nt DE ) n he nsa ci
9 i t Defnda s f Dodd- a vi ai .o The CFTC s ks
e nt or
Fr nk ol tonsl
ee
al gi t re n Count a ns
le ng hite
s ga

ij tvea e tbl r le a pe lisunde t Ac .
n unci nd quia e eif nd nate
r he t

9'he count a i tHunt rw ie M r J er a M r M ari c itd of
r
s ga ns
e s , . ag , nd . tn onsse :

e
Coun One oltonsofSe ton4( oft Ac,7U. C. 6 a ,hr u hilg lo f
t ,vi ai
ci a) he t S. j () t o g l a, fnt ,
e hange ta ac i agans a1 De enda s'
xc
r ns tons i t 1 f
o Se to 4 o t eAc, U. C j6 () a ans Hune W ie
f ci n b f h t 7 S. b a , g i t tr s ,
2. CountTwo, oltons
vi a i
M r M a tn,a M r J r
. ri nd . age ;

3. Co n Th e , ilto o S cin6 c( )o t eAc, U.. j9 1, ndRue 1 0.,1
u t re voains f e to ()1 f h t 7 SC. 4 ) a
l 8 1 7
C. R.j18 1, i tHunt W ie, r M atn,a Mr J ge ;
F.
0. agans
er s M . ri nd . a r
4. CountTweve viltonsofSecin4d o t Ac,7U. C.j6d() f f iur t r se
l , oai
to
f he t S.
a , or al e o egitr
a ns HuntrW ie M r M a tn,a M r J r a
gai t
e
s , . ri nd . age ; nd

Co n Thre n, i ig a da et gu d rS cin 1 ()o teAc , U. C. 1 c
u t ite adn n b ti n e e to 3 a f h t7 S. j 3 ,
n
aga ns H unt r W i e, r M a tn,a M r J r
i t
e
s M . r i nd . age .

( mp .DE 1 . re c o t id vd a, n-niyDee d n sa df re c o t Co ns
Co l, ) Fo a h f he n i iu lno e t
t fn a t n o a h f he u t,
t Compli alge c r lpes la lt purua t Seci 1 b)oft Ac , U. C.
he
ant le s onto ron ibiiy s nt o ton 3(
he t 7 S.
j1 eb . a ke pa d dt CF S u idcinb icu i S ci n2 c( )D)t t eAc,
1 Do()Frn x n e he TC'j rs ito y n ldng e to ()2 ( o h t7
03d
dU. C. 2 c( )D) whihp o i e ,np rie t r:
S. j ()2 ( , c r v d s i e t n pat
n

On De e r6,2 2,t CFTC fld a M oin f r Prl n r lj n to ( 4
c mbe
01 he
ie
to o ei a y n u cin DE )
mi
s e n t e j i te Dee d n s fo o frn a d e e u ig ilg l rti c mmo iy
e kig o n on h
fn a t r m fe ig n x c tn l a eal o dt
e
ta a tons On Fe u r 22,201 afe t Co thel ahe rng on t M oton f Pr i i r
r ns c i .
br a y
3, tr he ur d
ai
he
i or elm na y

( Reai c
D) t l ommodiyt ns tons
t ra aci
()Applc lt
i
iabiiy

Exc p a p o i e i ca e(i,h ss b aa rp s al p yt a a re n ,
e t s r v d d n lus i) ti u p r g a h h l a pl o ny g e me t
c r c ,ortans ton i a co modiyt ti onta t r aci n ny m
t ha s

()
l

(1
1)

e ee i owih,orofe e t (ve i note erdi owih) apes
ntrd nt t
fr d o e n f nt e nt t , ron

t ti nota ei bl c r c pa tc pa orei bl c
ha s
n lgi e onta t rii nt lgi e omm e cile iy;
r a ntt
a
nd

e erdi o,oro frd( ni note e e i o ,onalveag or
nt e nt
fee eve f ntr d nt)
e r ed
m a gi d ba i , fna e by t ofe or t co t r t oraperon
r ne s s or i nc d he f r ,he un e pary,
s
a tng i c e twih t ofe ororc e pa t on asm ia ba i.
c i n onc r t he f r
ount r ry
i l r ss

(i Exc ptons
i) e i
Thi s
s ubpa ag a s lnota y t r r ph hal
ppl o

()
l

a a re n , o ta t o ta s ci nd s rb di p r g a h( )o
n g e me t c nrc, r r n a to e cie n aa rp 1 r
s b aa r p s( ,B) o ( ,ncu i a ya r e n , o ta t o
u p r g a h A) ( , r C) i ldng n g e me t c n rc, r
ta s cins e iial e cu e fo s b aa r p ( , B) o ( ;
r n a to p cfc l x ld d r m u p r g a h A) ( , r C)
y

(1 a s c iy;
1 ) ny e urt
(1) aco rc ofs l t t11
nta t ae ha

( ) rs t i a t dei r wihi 28da ors h ohe l r
aa e uls n cual lvey t n
ys uc t r onge

pe i ast Comm ison ma de e m i byr e orr gulton
rod he
si
y t r ne
ul
e ai
bas d upon t t c lcomm e e a pr tc i c h ors m a ke s
e
he ypi a
r i l aci e n as
pot r t
f t c
or he omm odiy i ve or
t nvol d;

(
bb) ce t a e o c a eoblgai t delve bet nas le a a
raes n nf r e bl i ton o i r wee elr nd
buye t tha t a lt t delve a ac e de i r
r ha ve he biiy o i r nd c pt lve y,
rs ci l i c
e pe tve y, n onneci wih t lneofbusnes oft s l
ton t he i
i s he eler

a buye g)
nd
r.

7U. C. 2 c( )D) Fo amo edealdd s u so r g r igDo d Frn sc a g st t Ac
S. j ()2 ( . r r tie ic si n e adn d - a k' h n e o he t
a t r uie e t tr t lco m odiy ta a t o occz on a r a e e ha
nd he eq r m nt ha e ai m
t r ns c i ns lr
egul t d xc nge,s t
ee he

Co tsFe uay 1 201 Or r ( 281 .
ur' br r 9, 4 de .DE )
6

lj n to ,t Co r is e a Or e Te r rl Ap on i S e ilCo p rt M o io .(
n u cin he u t su d n d r mpoa i p itng p ca r o ae ntr DE
y
7 )1 Th co r is e a or e o Plitf' M o in f rP ei n r lj nci n ( 7 )o
7 .l e u t su d n d r n anifs to o r l a y nu to DE 8 n
mi

Fe r ay 2 ,2 3 ûn i t tt CF h sj rs ito o e t ec mmo iista s cin a
b u r 6 01 , dng ha he TC a u idcin v r h o dte rn a to s t
is ei tei tn matra d wa e tte t ap ei n r ij n to a d oh re utb er l f
su n h nsa t te n s n i d o rlmia y n u cin n t e q ia l ei .
l
e
The Cour alo r afi med t Spe i l M oniors aut iy as i r a e t t c por t
t s e tr
he
ca
t '
hort
t elt s o he or a e

Deknda s' ( eDE 78. t33- .
t nt.z se
a 37)
The Cour e er d a Or on t Pari 'M otons f Summ a y J
t nt e n der he tes
i or
r udgmenton Fe a y
bnzr

1 ,2 4.( 2 1.I t eFe r ay 1 ,2 4 Or e ,t Co r g a td s mma yj d me ti
9 01 DE 8 ) n h b u r 9 01 d r he u t rn e u r u g n n
f voroft CFTC a a i tt HuntrW ie De e
a
he
nd gans he
e
s f ndan s a t CountOne oft Compl i ,
t so
he
ant

vi ai ofSeci 4()oft Ac:ilgalof-xc ngeta acins a Coun Tweveoft
oltons
ton a he t le , fe ha rns to ; nd
t l
he
Compli t vi ai nsof Se ton 4d oft Ac f f l e t r it r Ther f e,t Cour ne d
a n , ol to
ci
he t or aiur o eg se .
e or he
t e
hea i
fa ng,
onl a es Co Two,vi a i of Se ton 41 of t Ac 1 by c tng, dt r udi or
y ddr s unt
oltons
ci
7
he t3

cil
t , e tfe
i he ra e r ng
1 M el ni D a i n, t Cour- ppoi ed Spe a M onior t sii d durng t ti lr ga di
1 a e m a he
ta
nt
t l s st r t i c t e sduet Hunt rW ie'
he os e o e a l usom r
o
e s s
Hunt rW i e sm a gi t a ng a coun s
e
s ' r n r di c
t,
s he a Hun e W ie' pr s s
c me, nd
t r s s ott .
1 O A rl1 201 t El ve h Cic ta tr e t Cour' Or ron Pl ntf sM oton f
2
i 5
4 he e nt r ui fim d he
ts de
ai if
i or
n p
,
,

Prlmia yIj n to CFFC v Hu e WieCo di e,
ei n r n u cin.
. ntr s mmo t s LLC, -F.d-, 01 W L 1 4 3 ,
i
- 3 -2 4
42 4 5
* 2( 1h Ci. 01 )( e en fe,o u trWieà.niso i in,heElv n hCic t ( )f u d
1 1 t r 2 4 h r ia tr Gi n e s ' l t p no t e e t rui: 1 o n
l
n er rwihteCo r' fcu l i dng a da r e wi i lg l o l ins ( ) l t a t e
o ro t h u ts a t a fn i s n ge d t t e a c ncuso ; 2 hed h t h
h s
CFTC had e or me a hort o rt diput d pr ci me a ta a tonsa t tno
nf ce nt ut iy ve he s e e ous t l r ns c i
nd ha

e c pt nsa pl d a d( )a fr dteCo r' ga o p ei n r ij n to b c u et
x e i p i ; n 3 fime h u ts rnt f rlmiay n u cin e a s he
o
e
CFTC ha pl a aprm af i c s ofavi a i oft Ac . #. t*1
d e ded i ace a e
olton he t f a 2.
1 Seci n 41 o t Ac saes i pe tne tpa t
3 to 7 f he t tt , n ri n r:

()Unl ulaci
a
awf tons
I s l bet a ul
t ha l ml wf -

(
2)

f a pe s i ori c ci wih a or rt ma ,o t ma ng
or ny ron,n n onne ton t ny de o ke r he ki
of a co r c ofs l ofa co modiy f f ur de i r ors p, ha
, ny nta t a e ny m
t or ut e lve y, wa t t
7

o he t r f a
e a l usom r n onne ton wih r t l c m odii s
ci
t e ai om
te
atem ptng t c a o de r ud r t i c t e s i c
t
i

ta a tons CountThre,vi ainsofSe ton 6()1 oft Ac1 a d Re ul ton 1 . 11 by
rns ci ;
e olto
ci c( ) he t4 n g a i 80 5

i made ort bema f oro be l ot orwih,a ot rpes n,ohe
s
, o
de, or n haf l
t ny he ro t r
ta o o s b e t oter lso ad sg ae c nr c mak t
h n n r u j c t h ue f e in t d o ta t r et c a orde r ud oratemptt c tordefa t ot rpe s n;
o he t
fa
t
o hea
r ud he he r o

(
B)

wilulyt ma orc> et bema t t ot rpe s a f s
lf l o ke
us o
de o he he ron ny ale
r por orsatm e o wiluly t e e orca e t be e er d f
e t t e nt r lf l o nt r
us o
nt e or

t ot rpe s a f s rc d;g )
he he ron ny ale e or or

(
C) wi f l t d c ie o atmp t d c i t oh rp ro b a y me n
l ul o e ev r te t o e eve he te e s n y n a s
l y
wha s ver i r a d t a o de or co r ct or t diposton or
toe
n eg z o ny r r
nta
he s ii
e c i of any or r or c r c , or i r r t a a of a nc
xe uton
de
ont a t
n ega d o ny ct
ge y
pe f r e wih r pec t a or r or c r ct f or i t c e of
r o m d, t es t o ny de
onta or , n he as

paa rp ( ) wi teohe p ro .
rg a h 2 , t h t r e s nl
h
l
7U. C.j6b()2)
S.
a( .
1 se ton6()1 oft Ac pr de ,i rlva pat
4 ci c( ) he t ovi s n ee nt r:
l s lbe unlwf f a pe s diecl ori r c l t us orempl or
t hal
a ul or ny r on, r ty
ndie ty, o e
oy,
a tmpt t us or e o i conne ton wih ... a c r t of s l of a
te
o e
mpl y, n
ci
t
ontac
ae
ny
c m odiy i i t r t t c m e c ...a m ani a i or dec ptve de ce or
om
t n n e s a e om r e
ny
pul tve
e i
vi
co rva ,i c r ve i ofs h r l s and r a i as t Co m iso
nti nce n onta nton
uc u e
egultons he m s i n
s l pr
ha l omul t .
ga e

7U. C.j9( )
S.
1.

1 Rul 1 . 1 r a ,i peri ntpar :
5 e 80 e ds n tne
t

()I s albeu lwf lf ra y p ro dr cl o idrcl ,i c mwcin wi
a thl
na u o n e s n, ie ty r n ie ty n o to t
h
a ...c r ct of s l of a commodiy i i e sat c
ny
onta
ae
ny
t n ntr t e omme c
re
i t ntona l orr c es l
n e i ly e kl sy:

( ) Us or e oy,or atmptt us or e o a ma pultve
1 e
mpl
te
o e
mply, ny ni ai
de ce s he e ora tfcet defa
vi , c m , rii o r ud;

( M a oratmptt ma a untueormil di sae tofa
2) ke, te o ke, ny r
sea ng ttmen
matra f to t om i t sae am aeralf c nec s ar i or rt
e i l ac r o
t o tt
t i a t e s y n de o

ma t saeme sma notunr ormil di ,gr
ke he tt nt de
tue
sea ng' o l

( )Eng g ,o atmp t e g g ,i a a t p a tc ,o c u s o
3
a e r te t o n a e n ny c, rcie r o re f
busnes , whi h ope a e o w oul o r t a a faud or dec i
i s
c
rts r
d pe a e s r
et
upon a pe s
ny r on.
8

t
o

e oyi a s he e o a tfc t de r ud i c
mpl ng c m r rii e o fa n onne ton wih c r t ofs l ofcomm odii s
ci
t ontacs
ae
te ;

dCo n Th re n adnga d a tig u de Se to 1 ()o t Ac, U. C. 1 ca . Th
u t ite , i i n bet n r cin 3a f he t 7 S. j 3 ()1 e
n
6

an

CFTC al gest tM r M a tn a M r J ge deveoped a s he usng Hun e W ie' c por t
le ha . ri nd . a r
l
c me i
t r s s or a e

we t de r ud o r3, r t i c t r a r ule i t r t i c t e s l i ove $5
b o f a ve 200 e al usome s nd es t d n he e a l usom r osng r 2
m ilon fom J y 16, 1t z
li r ul
201 h ough Febnmr 25,201
y
3.
#. TheCasno' Ope atons
i s r i
Ht e W ie' s he was a mulil ve m ode .Fis, t Deaer De enda s wo d
mtr s s e me
t-e l
l r t he
l
f nt
ul

c ac a s i tnovi a ama e i sor t entri o fna ed comm odii sta a tons
ont t nd olci
ce nd
t ur nve t s o e nt i nc
te r ns c i
usng Hunt W i e s doc nt a tani m ae i lt gui t m .Ne ,t deae s wo d
i
er s '
ume s nd r i ng t ra o de he
xt he lr
ul
s nd t r t i c t r ' f
e he e al usome s unds t Huntr W ie, who woul i t n diti e t de l r '
o
e
s
d n ur srbut he a e s
a i a e s r oft f sand i e es.Lasl Hunt rW ie woul us t r mai ng f
pplc bl ha e he ee
ntr t ty,
e
s
d e he e ni unds t
o

e e i o m a gi ta ng ta a tons wih t me a s Supple s Hunt r W i e see e a
nt r nt
r n r di r ns c i
t he t l
ir .
e
s t r d nd
contole e r a pe toft spr s .
r ld ve y s c
hi oce s

t h
h
ae f n a t n
The Re ai Cu t me s'I tr to s wi te De lr Dee d ns a d
t l so r n eaci n
H unt r W i e
e s
he
l
f ndan s m ir pr s nt i ,t e i sor ,ie, t r t i
t ' se e e atons hes nve t s .. he e a l
Becaus of t Deaer De e
e
c t r,t
usome s hought t y we e pur hasng pr cous me a s fom t Deaer Def nda s on a
he
r
c i
ei
tl r
he
l
e nt

1 C. R.j1 1.
7 F.
80.
1 seei 1 a oft Ac pr de ,i rlva pat
6 ton 3() he t ovi s n ee nt r:
Any peron who c
s
omm is or who wiluly ads a t ,co es c
t,
lf l i , be s uns l, omm a ,
nds

i e ,orpr ur t c
nduc s
oc es he ommisonof aviltonofa o t pr vii oft s
si l oai
ny f he o sons hi
c pt ,ora oft r es r gulto ,oror sis d purua t t sc pt r
ha er
ny he ul , e ai ns
der s ue
s nt o hi ha e ,
orwho a t i c
c s n ombi ton orc er wih a o he pe s n i a s vi ai n,
nai
onc t t ny t r r o n ny uch olto
orwho wiluly c us s a a tt be done oromit whi h i diecl pe f med
lf l a e n c o
ted
c f r ty ror
orom itd by hi oranot rwoul be avi l ton oft pr sonsoft sc pt r
te
m
he
d
o ai
he ovii
hi ha e

o a y o s c r ls rg lto ,o o d r ma b h l r s o il f rs c
r n f u h ue , e uains r r es y e ed e p nsb e o u h
vi a l n a a prnci l
ol to s i pa .

7U. C. 1 ()
S. j 3ca .
9

fnanc ba i.For e m pl t De e De e nt
i ed ss
xa e, he alr f nda s'webst c am e t r t l cusome s
ies l i d hat eai
t r

woul be buyi m eal,bu t tt me as woul be so ed i a de ior whih woul
d
ng t s t ha he t l
d
tr n
post y, c
d
r quie a sor e f See eg. Bl c t W e ie,CFTC Ex.52 a 4.The DeaerDef nda s
e r t ag ee. , . , a ksone bst
t
l
e nt
cai e t tonce t r t lc t e s s
l m d ha
he eai usom r ubmitd a down pay e ,t r t lc t e s woul
te
m nt he eai usom r
d
r ceve a l n t c r t r s of t c t ofbuyi t me al.The r t l c t r w e e
e i
oa o ove he e t he os
ng he t s
eai usome s r
c ge e r tnti e es on t s pur e l ns17
har d xo bia nt r t he e pos d oa .
Ret l c t e s e
ai us om r xpec ed t r p t be f t of t r i t e i t s m e a s
t o ea he ne is
hei nvesm nt n he e t l

c
omm odiy ta a tons Ht e W ie s own ta ni m ae il , whih i ofe e t Deae
t r ns c i . mt r s '
r i ng tra s
c t frd o
lr
Def nt t us on r t i c t
enda s o e
e al usomer ,cai
s l med t tta ng i pr ci m eal wa a i
ha r di n e ous t s s û um
medi
rs i t nt'a t tr ti cuso e s s w d r 300% r t n. CFTC Ex. 11 a 7, 1
ik nvesme ' nd ha ea l t m r a l
ove
eur '
'
2 t
2.

Fu t r t Hunt W ie c e e tani m ae il pr m ie û
rhe , he
er s - r atd r i ng tra s o s d t ialowne s p'oft m eal
physc
r hi ' he t s
t twe elqui and woul t l
ha r i d
d i wayshaveva ue. 1 a 31.
a
l ' d. t
'
The r t i c t m e s e e e i o s ve al a ee e s w ih t D e e D e e nt e a l us o r nt r d nt e r gr m nt
t he al r f nda s

agr e e s t t we e pr pa ed by Huntr W ie. A Cusom e Loa Sec iy & St r ge
e m nt ha
r e r
e
s
t r
n,
urt
oa
Agr e e pr dedt tispur ewa t
e m nt ovi ha t pos s o:

stf rh t etr t e whih ( d aelwilln t Bor we ,fo tmet
e o t h ems md r c t e lr l e d o ro r r m i o
he
tme physc lc
i , ia ommodii (he çco
tes t : mmodiy Loa ',a s ofmone t
t
ns' nd ums
)
y o
purhas physc commodiis(hetcas Adva es),i udi butnotlmie
c e
ial
te t s h
nc ' ncl ng,
i td
t dei r t a de ior c t , f es sor ge, c lt r , s urt i t r t
o, lve y o
post y, oss e , t a
ola e al ec iy n e es,
c ti rs a c t as oc aedwih e c l n ta a ton.
era n iks nd os s s i t
t a h oa r ns c i

Cusome Ac ountAg e me Te ae,CFTC Ex.1 a 4 ( ena tr ta Ag e me )
t r c
r e nt mplt
50 t heri fe , toan r e nf'.
l
Fr t s Loa Ag e m e ,t r a lc t e s we e 1 d t bei ve t tt i er s t we e
om hi
n r e nt he eti usom r r e o le ha he nt e t hey r

payi wa f t l nst i de l r fna ed f t e tans tons a t m eal sor d on
ng s or he oa her a e s i nc or hes r aci
nd hat t s t e
be l oft r a lc t e s a t ly e s e
ha f he et i usom r c ua l xi t d.

1 Asde c i beow , t r t lc t m e sdi nota t ly o any me a sand Hunt rW ie
7
s rbed l he eai uso r d
c ual wn
tl
e s
ne e cu e any l ns
ver xe t d
oa .
10

As pa tof t s he e Hunt r W ie c e t d t mplt s a i s d doc e s o t
r
he c m ,
e
s r a e e a e nd s ue
um nt n he
De e De e nt ' behaf t oug is onlne daaba e c le t ç t . Huntr W ie
alr f nda s
l hr h t
i
t s a ld he t al'
por '
e
s
m ant i a c r l t s çporal' whih alowe de e s a r t i cusom e s t ac es
i aned nd ontoled hi ç t ,' c l d alr nd e a l t r o c s

t ra c
hei c ounta tans ton i or i and alowe t De l De e
nd r ac i nf maton
l d he aer f ndant t pr pa e r pors
so e r e t
on t i r t lc t e s Hunt rW ie ge r t d t a coun docume st twe egi n t r t i
her eai usom r .
e
s ne a e he c
t
nt ha r ve o e a l
c ume s eve t
ons r , n hough t we eon t De e Defnda s lte he a a ar d t be fom
hey r
he alr e nt ' e tr ad nd ppe e o r

t De e De e
he alr f ndant.The doc e s i l
s
um nt ncuded Tr de Confnna i notce ,t x f m s Notc
a
i ton i s a or , ies
ofTr ns e s a a coun sae e s Furhe ,Hunt rW iepr de tani m ae il a ot r
a f r , nd c
t t tm nt . t r
e s ovi d r i ng tra s nd he
s r c t tt De e De e nt us d t s ii r t i c t e sa m ant i t ra count i
e vies ha he alr f nda s e o olc t e a l usom r nd i an hei c
sn
or rt c i t s he e Se Fic Te tm o Fe 27- 201 M a .3,201 A1 oft e
de o ontnue he c m . e th si ny, b 28, 4, r
4. l hes
doc e sc ai d m iladi saeme sorde ptve omisonsr ga di whehe t r t i
um nt ont ne
se ng t t nt
ce i
si
e r ng
t r he e al
c t m e sa t ly o d pr ci m eal
uso r cual wne e ous t s.
Thr h t pora ordi c sonwih t rde l r ,t r a lcusome st
oug he tl
s us i
t hei a e s he eti t r houghtt y we e
he
r
a e t buy a s l m eal.I t rta ng equiy f l be o ac ti pe c nt ge t y woul ge
bl o
nd e l t s f hei r di
t el l w era n r e a , he
d t
ama gi c la t y woul ha t de i m or m one i o t rac ou .l t i posto f l
r n al nd he
d ve o post e
y nt hei c nt f her ii n el
t a e n l r e t pe ce age pa toft r t lcusom e s'ac ou woul be lqui t d
o n ve owe quiy r nt , r
he eai t r
c nt
d
i da e
untlt r we e e
i he e r noug f
h unds i t ac ounts t tt equiy pe ce age woul be overt
n he c
o ha he
t r nt
d
he

m a gi c l a ount Hunt r W ie had t abiiy t i
r n al m
.
e
s
he lt o mpos m a gi cal a lqui t r t l
e r n ls nd i dae eai
cus om e s pos tons
t r ' ii .

( )Hu trWie'M a a me t fteDe lrDee da t
2 n e s s n ge n o h a e f n ns
l i a r ntt tt whol s heme woul f la r wiho Hunt rW ie' e rpr e
t s ppa e ha he
e c
d al pa t t ut
e s s ve - es nt
ove sght Fore
ri .
xampl Fr nk Ga no,t owne of Ll
e, a
udi he
r
oydsCom modii ,t tte r ga di
tes esii d e r ng
how m uc he and t De e Def nda s de nde on Hun e W ie t ope at t s he e.
h
he alr
e nt pe d
tr s o
r e he c m

11

Ll
oydswasr s nsbl f r c uii t de l r who s i t t r t i c t e s f Hunt
e po i e or e r tng he a e s
olcied he e a l usom r or
er
W i e Al o Ll ' alr us d Hun e W ie' s r c . Ga no Te tmony,M a . 201
s . l f oyds de e s e
t r s s e vies See udi
si
r 3, 4.
Ll
oyds s r d a a i e medir be wee Hu e W ie a t Deae De enda s i
e ve s n nt r
a y t n nt r s nd he
lr f nt ; t
pr de no ot rs r c t t de l r .1 Alhough Ll
ovi d
he e vies o he a e s d. t
oydswoul tnd de e st do busnes
di
alr o
i s

wih HuntrW ie i wa HuntrW ie t tr n t ba kgr
t
e
s ,t s
e
s ha a he c ound c c on t e de e st e ur
he ks hos alr o ns e
t rc edi lt l was Hunt r W ie t twoul de l t tc tnumbe wih a prc f a l
hei r biiy. t
e
s ha
d ve op he ike
r t
i e or l

ta a i f Ll
r ns ctons or oyds t r a t t de e s and t de e s t t r t lcusome s l wa
o ely o he alr ,
he alr o he eai t r . t s
HuntrW ie t tpr ded t s r ce Ll
e
s ha ovi he e vi s oydscli e i pr ded i ispr otonalbr hur s
am d t ovi n t om i
oc e ,
whi we e i ntc t t e c am e i Hunt rW ie 'own pr
ch r de ial o hos l i d n
e
ss
omotonalbr hur .Compar
i
oc es
e
Ll
oyds Pr otona Br hur CFTC Ex. 1 w ih H unt W i e Pr otonalBr hur CFTC
om i l oc e,
05 t
er s om i
oc e,

Ex.l .l a ton,i wa Hunt W iet tLl
51 n ddii t s
er s ha oydsde
pende on t pu cha e t met sa t
d
o r s he al nd o
pr de c i ton t r ti c t m e s t t t me a s e se Si l r t t i ntc l
ovi ontnna i o ea l uso r ha he t l xit d. mia o he de ia
pr
omotona br hur s Ll
i l oc e , oydssmpl r br nded t con e sofa Hunt rW i eNewse t t t
i y e a
he t nt
e
s
lter ha

c i d t m eal i
onfnne he t s nvent y a s nt i t is cusome s unde Ll ' l
or nd e t o t
t r
r oyds ogo. Compar
e

T a se Not e ,Hu tr W ie Ne lte ,J l 2 ,201 ,CFTC Ex.1 8 wi E- i wi
r nf r i s ne s wsetr uy 0
c
1
1 t mal t
h
h
Lly sNe lt r( g 2 , 01 )( TC Ex 1 9 .
o d wset Au . 3 2 1 CF
e
. 1)
Syl a W ila s a f r e e pl e a ow ne of Ll
vi
li m , o m r m oye nd
r
oyds A s e M ana m e a a
st
ge nt nd
f m e br - a e f Hunt r W i e tuoug Uni r a Cl a i Fi S. .a Ba c ay M e al ,
or r oker de l r or
e
s l
h
ve s l e r ng nu A nd r l
ts

l ,alo t sii d a
nc. s e tfe bout how muc c r Huntr W ie ha ove is deaer .Se W ila s
h ontol
e
s d
r t
l s e li m
Tesi ony,Fe 27,201 Re ai cus om e s'a cou s a e e s we e s die l fom Hunt r
tm
b.
4. t l t r c nt t t m nt r ent r cty r
e
W i e t t cus om e s He Fl i ba e c por ton,Bar l M e a s di note cu e t l ns
s o he t r . r orda- s d or a i
c ay t l , d
xe t he oa

i pur td t ofe isc int ;s ad it d,çW e di tha t tki ofm one ' I a 1 6t pore o f r t le s he m te û
dn' ve ha nd
y. d. t 8:
'
1 I t d,Ba clys l
2. nsea
r a ooked t Hunt r W ie t c r t lndi and de lwih t m eal.
o
e
s o ontol he e ng
a t he t s

12

H unt r W i e r pr s nt i , J y Br e Gr s a is l al c
e
s e e e atves a
uc
os m n, t eg ouns l1 a J D e D i , js
e ,8 nd oe
os t

Diecor ofU. De l e ,c im e t tHunt rW ie ça ol ey' ha t m e as.1 a
r t
S. veopm nt onfr d ha
e
s çbs ut l ' d he t l d. t
l 1 1 2.M s W ila s r c l M r Gr s a i i tng t s pr de hi phone nu be t
3: 2- 4:
. li m e aled . os m n ns s i hat he ovi
s
m ro

he br r a t n t t r t lcuso e ss t the c d confr Hunt rW ie' owne s p of
r oke s nd he o he eai t m r o ha
oul
im
e s s
rhi
t m eal t t m . d.
he t s o he I
TheDe e De e nt s ntt de isand o he fmdspr ded by t r t lc t
alr f nda s e he post
t rt
ovi
he eai usomer ,
s
a welast i ac ounti or ton,die y t HuntrW ie ort Ll ,who woul t n s nd
s l he r c
nf ma i
r dl o
e
s
o oyds
d he e
i t Hu e W ie No ma trt i e medir howe ,t r ai cusome s f
t o nt r s .
te he nt r
a y,
ver he et l t r ' unds woul e
d nd
up i H unt W i s account
n
er se'
s.

( HuntrWie' Tr actonswiht Met sSu ir
3)
e s s ans i
t he al pples
W hie Hunt r W i e w a die tng is br r a dea e st c tt r t lcus o e s i
l
e
s
s r c i t oke s nd
l r o hea he e ai t m r , t

was alo usng t r t l c t r 'f
s i he eai usome s unds t e ut a he lvelof is s me.I t a of
o xec e not r e
t che
nse d
bu ng pr c ousmet son a fnanc bassi t r a lc t e s name,ast y we e t d a
yi
ei
al
i ed i n he eti usom r '
he
r ol nd
a t a ee t Hunt rW ie t t c t e s money,pr ded t De e De enda swih
s hey gr d o,
e
s ook he usom r '
ovi he alr f nt t
he r
ei
ts
i nce s s r he
ir .
t rs r 1 a d boughtt i ow n pr c ousm e al on a fna d ba i f om t Supple s The e
hei ha e,9 n
s

m a gi d ta ng ta a tons a l
r ne r di r ns c i
lowed Hu e W ie t ofs t is rs a us is downsr m
nt r s o fe t ik nd e t
tea

1 M r Gr s an a hi l fr , JB.Gr s n, A. wer alo lgalc m s a t
8
os m
nd s aw i m .
os ma P. , e s e
ot el nd he
r it r d age f Ll .Durng t e ry sa soft ss t M r Gr s a a a ed a
eg se e
nt or oyds
i he a l t ge
hi ui, . os m n ppe r s
c
ouns f Hunt rW i e H o e r i t Cour ' Se e be 6,
el or
e
s . w ve , n he
ts pt m r 2013 Or r Gr tng Pl i if s
de an i
a ntf '

M oi t DiquaiyJB. osma a J. Gr s n,P. asCounsl( 21 ,t Cour
ton o s lf . Gr s n nd B. osma A.
e DE 0) he
t
f
ound t ,pur ua t Fl i Ba Rul 4- . ac lc ofi er s e se a M r Gr s n
hat s nt o orda r e 19, ontit nt e t xitd, nd . os ma
a hi l w 51, w e e di qua ii d f om r pr en i M r M a tn a M r J ge i t sm ater
nd s a
7, r s lf e r e es tng . ri nd . a r n hi
1
1
t .

( 21 a 1 .lwildic sM r Gr s si ve nti mor deaibel
DE 0 t 0) l s us . osman' nvol me n e t l ow.

1 The D e l rD e e
9
a e f ndan s w o d r c ve hal oft prce s ea , i e es on l nst tt y ne r
t ul e ei
f he i pr d nt r t oa ha he ve
di bur e and s r c f e H un e W i e w oul r ce ve t f lc m i son cha ge a
s s d,
e vi e e s. t r s
d e i he ul om s i
r d,
percent oft r ai cust er t s deposi,asw el as t rem ai ng prce s ead,i er t
age he et l om s' ir t
t
l he
ni
i pr
nt es ,
a sr ief s
nd e v c ee .
1
3

ci n s2 m one t do s . The a ee nt Hunt rW ie e e e i o w ih t Suppler a t i
le t '0
y o
o
gr me s
e
s nt r d nt t he
i s nd he r
r m e e ai made i cea t tHunt r W ie di no i f d o t m eal i t e m a gi
e s nttves
t l r ha
e
s d t n a wn he t s n hes
r n
ta ng a c s Dei r oft me a son t r t i c t e s be l, t rde e r orno ,
r di c ount . lve y he t l
he e al usom r ' haf whe he f red
t
di no oc r Se Fic Tesi o Fe 28, 4.
d t cu . e t h tm ny, b. 201

Hun e W ie c am s t t i owne t me al i t Supple s pos e son, but i
t r s l i ha t
d he t s n he
ir ' s s i
,n

a t ai , h e i e c s o ta Hu trW ieo e a itrs i measa dwa s be tt a
cu lt t e v d n e h ws h t ne s wn d n n ee t n tl n s u j c o
y
magn c l, u tl isrti c so r. r M at a dM r J g rtidt e mpaeismagn
r i alj s i t eal u t me s M . ri n . a e re o o r t r i
ke
n
ta ng ac i t t a morg .Howe ,wih a morg a i vi
r di
tviy o
tage
ver t
tage n ndi dualr cevesowne s p a
e i
rhi nd
a ualde i r oc s A ba may f ec os on a hom e onl i t i vi
ct
lve y cur .
nk
or l e
y f he ndi dualsops payi .
t
ng
H e e t a f r of o ner hi a ac ualde i r oft m e al ne r oc ur ed.I H unt r W i e'
r , r ns e
w s p nd t
lve y
he t s ve c r f
e
s s

a ount f lbeow a c ran e t l ve ,Hunt rW iewoul ha t i s m or m one orrs
cc s el l
e ti quiy e l
e s
d ve o nve t e
y ik
l i i a l The e wasno ta f rofowne s p t t downsr n ci nt . Pa rc ima i
osng t l. r
r ns e
r hi o he
te m le s pe onfr tons

wihouttue owne s p,a t rs ofl i t ri t nt i ma gi c l occ r d, m a
t
r
r hi nd he ik
osng hei nvesme s f r n als ure
de
t ta a tonsHunt rW ieofe ed e iey dif r ntfom morga s.
he r ns c i
e s f r ntr l fe e r
t ge
The D ec i e Pat ons - The R e ai Cus om e s
ev d r
t l t r
I s e s t t pa r of La V ega ca i w o d f r be t r t n t r t i cus om e s
t e m ha t ons
s
s snos ul a e te ha he e a l t r
who w e e c ught up i H unt r W i e' s he e.W hie H un e W i e w a ce e a i is ga ns
r a
n
e
s s c m
l
tr s
s l br tng t i ,

ove 90% oft r t i cusome si t s he e l tm one bewe J y 1 , 2011 a Feb ua y
r
he e al t r n he c m os
y t en ul 6
nd r r
25, 2013.
21

Hunt r W i e,Ll yds a t D e l r D e e nt ne t r pur has pr i m e a s o
e
s
o , nd he a e
f nda s ihe
c ed ec ous t l n

t r t lc t e s beha f dibur e l n f
he eai usom r '
l, s s d oa unds t tna e t po ton oft pur ha e prc
o i nc he ri
he c s i e
2 M r St Fic yDie t ofDeaerTr i ng a Hunt rW ie, a e t thewoul consde t
0 . eve th r c or
l a ni t
e s gr ed ha
d
i r he
r t i c t r t be ç
e al usome s o ç
downsr a cle s' Ht e W ie. e Fic Tesi
te m int 'of mtr s Se th tmony, Fe 27,201
b.
4.
2 A c or ng t isr c ds HuntrW iemadeove $1 m ilon fom J y 1 2011a Fe u r
1 c di o t e or ,
e s
r 8 li r ul 6,
nd br a y
25,201 t oug s e c r es i er s,a s r cef s
3 hr h pr ad ha g , nt e t nd e vi ee .
14

r mai ng,norde i r me a st t r t lc t r . Ye ,t r t lc t e spa d f esand
e ni
lve ed t l o he eai usome s t he eai usom r i e
i er s on t m itken be if t t De enda s ha done a1 t s t ngs f t r t i
nt e t
he sa
le hat he f nt d
1 he e hi
or he e al
c t m e s'be i .
us o r
neft

Vitm soft s he e,Hunt W ie' downsr m cle s t tfed t l i t a
ci
he c m
er s s
tea int , esi
o osng hous nds
ofdola soft i lf s vi .Fore m pl Dag a M c r t tte dtrng he de ii t t
lr
he r ie a ngs
xa e, m r Eloy esii d li
r poston ha

herUSCT de l r ç r Le e' i or d he t ts woul notbec r d a f e , asde fom
a e , 1 . por ,' nf me r ha he
M
d
ha ge ny e s i r
an i ta 1 c r a t tt s l r s w as pur ha i w o d be s or d i a f iiy i he
nii l 0% ha ge, nd ha he ive he
c s ng ul
t e n ac lt n r

na e.M c r De a 9: 0-1 1 M s M cEloy i t d $28000. i sl r gol , and
m
Eloy po. t 1 0: . .
r nvese
, 00 n ive , d
pa ldi .Alhough s ha a e s t he onlne a c
la um
t
he d cc s o r i c ount M s M cEloy e a ne t t t
.
r
xpl i d ha he
,
s a e e s w e e c u i a t ti w a ea i r t s k w ih he br
t t m nt r onf s ng nd ha t s s e o pea t r okera
boutt s a us ofhe
he t t
r

m e as. e rdi he br ke i or he a uthe l s .M s M c r c ked he a o ti
t l N ve d r o r nf m r bo
r os es . Eloy hec
r cc un n
Fe u r 201 a s t si d t bei da ol ey foor d' t t s wa c r d ove
br a y
2, nd he e tfe o ng çbs ut l l e ' ha he s ha ge
r

$1 000. i co mison f esa ove $900 i i e c t 1 a 27: 25.Afe de a ng t t
5, 00 n m s i e nd r
n nt r s . d. t 22tr m ndi ha
he a coun be cl e M s.M cEloy r e ve a c ck f onl $3, 87,w hi h am ount d t
r c t
os d,
r e ei d he or y 457
c
e o
.

$ 5 1 i l ss
24,42. 3 n os e .
Anot rvi tm,J l W i ry,sa e hi dim a a t m a t ofhi l s a hi
he c i om
mbe l tt d s s y t he gniude
s os es nd s
fusr ton wih Newbrdge. I a c tfe l t a es e t t ç wbrdge Alince
r ta i
t
i
n
erii d eter ddr s d o he i
Ne i
la
Book e ng Dept'and da e Fe a y 23, 2, r W i ry wr e:
ke pi
o
'
t d bnzr
201 M . mbe l ot

Ap a e ty te p icp l (il o lv r g wee n v r ma ce r t me I
p r nl , h rn ias sc f e ea e r e e de la o .
i se t nt -ei t anddolas Att end,Is ul ha be n i c r
nve td we ygl ght hous
lr. he
ho d ve e n ontol
ofelve hundr d ffy ounc ofsl rvaued a $ 40 perounc Tha e s
e n
e it
es ive l
t 33.
e. t qual

t rygl ih t u a df u h n rdtndolr .
hit -eg tho s n o r u d e e l s
a
Now whe Icos outmyac ount youar s ndi meaha wrte (i c k
n le
c ,
e e ng
nd itn scj hec
f eght t a f hundr elve dola s a sxt -fve c nt.1 a
or i hous nd our
ed e n lr nd i ygli e s m
rt i t s c c lha no itnton ofc hi t s ( a ot r c c
eum ng hi he k. ve
ne i
as ng hi or ny he he k)
wihouta wrte deaied e a ton ofwhe e ni t e t a fve hundr d
t
itn, t l xplna i
r ne e n hous nd i
e

eg t -eg t ol r a dtitlli ec nso mymo e we t
ihyglih d l s n hry -fv e t f
a
n y n.
15

Letrfo W i ry t Ne rd e ( e 23 20 2 (
te r m mbel o wb ig F b. , 1 ) CFTC Ex 3 ) Mr W i e l,a
. 6 . . mb ry n
uns s i a e i t w ho r ei s Soc a Se urt che ks a a VA pe i
ophi tc t d nves or
ec ve
i l c iy
c
nd
ns on,

de nde on Ne i
pe d
wbrdge de e Clfo d Che k t die t hi t r s es f
alr if r
e o r c m owa d ucc s ul
i t e s Se W i be l Te tm ony,Fe 26,201 W hie t r w e e rs i i s i
nvesm nt . e m ry s i
b.
4.
l he e r i ks n nve tng

i sl r M r Che k c nce hi t sl rwa unde v ue a woul onl go up.
n ive , . e onvi d m hat ive s
r al d nd
d y
M r W i ry bele
. mbe l
ived he woul be m a ng m o y by buyi met s t ough
d
ki
ne
ng
al hr
N e brdg a M r Che k pr i e U nf r una e y,t tw a nott c e
w i e, s . e om s d. o t t l ha s
he as .

M r Fic t sii d t ti wo d betodd' f a deae t diappe r s e Fic Tesi
. th e tfe ha t ul
û ' or
lr o s a , e t h tmony,
Fe 28,201 ye t ti e ty w ha ha ne w he s m e of t vi tm s s
b.
4, t ha s xac l
t ppe d
n o
he c i ought e a tons
xpl na i

a
boutt rl s s a t r t n oft rmone fom dea e s W ila M ezge ,a r tr e oft
hei os e nd he e ur
hei
y r
l r . lim
t r e ie
he
r l e t t bus nes , t tfed t r ce vi a ç ii n Re oncii ton' s a e ent f om t
ea s a e
i s es ii o e i ng
û to
pos
c la i ' t t m
r
he

Delwae De ior Se vc Compa (S
a r post y r ie
ny t
DDSC' datd Se e r 1 201l t t sae
' e ptmbe 4,
)
ha ttd,
çluntrW ieSe vce ,LLC' (ijr or r lc t ta of9/4/ 1yo c r ntpostont)
û- e s r i s
l
S sc ec ds efe t ha s
1 201 ur ure
ii s
w ih C. . Hopki M e a s D i s on a e' a pur s of t ry ounc s of gol CFTC Ex.44.
t D
ns t l vi i r '
cha e
hit
e
d.

Bas on i or ai Hu e W ie pr ded,M r M e zg wast çbe i i lowne of'gol
ed
nf m ton nt r s ovi
. t er
he s netc a
r
d.
f
#.
Ye M r M e z r ne r r c ve t gol or s l he s
t . t ge ve e ei d he d
iver uppos y o ned.I Dec m be of
edl w
n
e r

2 2, e Mr M ez e a k dBlc so ed ae M u arm M a o dt d lv rhi meas Mr
01 wh n . tg r s e a k t n e lr k ra
wj o o eie s tl, .
M a o d tle hm o t o t a rq e t e e t o g Mr Mez e h d ara y ls
wj o ak d i u f h t e u s, v n h u h . tg r a le d o t
a oxi el $7, of t $20, he ha i t M r M ezge wa convi d by M r
ppr mat y 000
he
000
d nvesed. . t r s
nce
.

M a o d t a t eewa mo e t bema ei t e eta s ci n ,a d g v Mr Ma o d sxy
wj o h t h r s n y o
d n h s r n a to s n a e . wj o it
m or da t t n t i t e ar md.
e ys o ur he nvesm nt ol

16

Attee o tesx yd y , r M a o dwa no e et b f u d M r M ez e c l d
h nd f h it a s M . wj o s wh r o e o n . . tg r al
e
and l thi m es a ,buthe di notr t n M r M e zg r sca l .Af e a f w ee ,M r M e z r
ef m
s ges
d
e ur
. t e ' ls t r ew
ks . t ge

lane M r M a o d' voc malo wa f la dh n v rs o et M r Ma o da an. i
e r d . wj o s ie i x s ul n e e e p k o . wj o g i W t
b
h
no me a si hi na t ls sa e nther e ve lse hi balncea $7. 66,c i r bl
t l n s me, he a t tt me
ec i d it d s a
t 975. onsde a y

ls t n t $20, he ha i se M ez r Bl ksone Ac
e s ha he
000
d nvetd. tge ac t
countSttme (a 2013
ae nt J n.
)
(
CFTC Ex. a 9)2
41 t .2
Hu e W ie pr de t t s f t De e De e nt t m ir pr s ntt t of
nt r s ovi d he ool or he alr f nda s o s e e e he ype
ta a ton i t whi h t r t i cusome s we e e e i Fr tani m a s s rpt ,a
r ns c i n o
c he e al t r r ntrng. om r i ng nual, c i s nd
tl
her hal,
vi 2 t doc e t c i ng t e se e ofme a son t i be f Hunt rW iec r l d
deos3 o um n s onfnni he xit nc
e s ontole
e r a pe t of t downsr a c i nt de p i n,ye i di not di c os is i ve entt t
ve y s c
he
t e m le
ce t o
tt d
s l e t nvol m
o he
c t e s Furhennor i us t r t lc t e s f
usom r . t
e, t ed he e ai us om r ' undst pur has m a gi tadi a ount
o c e r n r ng cc
s

t di notgua a eet exitnceoft c
hat d
r nt he se
he omm odiis Hu e W ie kne t ewe e no m eal
te . ntr s
w her r
ts
i ispos e son,kne no l nsexitd t
n t
s si
w
oa
se hough i cha ge i e e t and kne t r wasno acual
t r d ntr s,
w he e
t

de i r oft me a s wihi t t nt ei da pe i l o de t m a a bi r pr i,
lve y
he t l t n he we y- ght y rod. n r r o ke
gge oft
HuntrW iewilngl de r uded isc t e s
e s li y fa
t usom r .

D.Dodd- ank War ngsfr Huntrl H ' Couns l
Fr
ni
om
e #' x
e
A s D odd- a nea e i pl m ent ton, Hunt r W i e s
Fr nk
rd m e
ai
e
s ought w a of c i ng t
ys
ontnui o
de r ud r t i c t e s e n t ug H unt r W i e' il ga oper tons w oul s be undert
f a e a l usom r ve ho h
e
s s le l
ai
d oon
he

CFTC' j rs cin. ne W ieh rd s v r lat r e t a v s i o i s h mea d o t e
S u idito Hu tr s ie e ea to n ys o d ie t n t c e n n h
s

2 T hr e a tona r t lcusome s Pa r c a M e c do,And ew Bur ,a Rober Ba a
2 e ddii l eai t r , ti i
r al
r
k nd
t um n
t tfed durng t ti l TheCour r e d t de ii t tm oni oft r t lcusome s
esii
i he ra .
t eviwe he poston esi
es he eai t r
t w e e de i t d by t Pari s a w el.
hat r s gna e
he te s l

2 M r M a oodtsiid,ç he 1frtc mei ot sbusnes a Ll Ase Mana me ,
3 . wj etfe l n is a nt hi i s t oyds st
W
ge nt
t y i r e met as resofvi ost tHunt rW ie ha a i br down exa ty how
he ntoduc d
o ei
de ha
e s d, nd t oke
cl

t tna e pr uc wor s,wheeaclen ha t putac ti downpayme .' a ood
he i nc d od t kg) r i t s o
eran
nt'M wj
De ,( 1 - a 49: 24)
po. DE 91 1 t 18- .
17

i plc tonsofDodd- n Durng t r e tpe i Hunt rW ie' f mercouns i l d
m iai
Fr nk. i he elvan rod,
e
s s or
el ncude

J hn Gi v n o eCt o n n n ' f r ry o Gr e b r Tr u i Ti ty Ca e (t ry' o
o
o a n n Gi v n o e' omel f e n eg a rg; moh r y û e ' f
)
Ca )
W i t a St a n, and f m e l of Dewe & Le uf a J y Br ce G r s a
ns on nd r w
or ry
y
Boe ; nd a
u
os m n

(ç osma ' ofJ. Gr s n PA ort f me fnn Gr s n Grenbeg.Prort a a t
û s n'
Gr
) B. osma
he or r i
os ma e r i o nd fer
Dodd- a be me e f tve Hunt W ie sc
Fr nk ca
feci ,
er s ' ouns le ane t M r J era M r M a tn t
e xpl i d o . ag nd . ri he
s r ous l ga i s a s a e w ih Hunt r W i e' oper to .W hie M r G i
ei
e l s ues s oci t d t
e
s s
a i ns
l
. ovnnnone was m or
e
a ma a
dn nt boutH unt r W i e M r J r and M r M a tn' ci la c i i labiiy,M r Ca e
e
s , . age ,
. r i s vi nd rm nal i lt
. r y,

a eve M r Gr s a i c t d t tHunt rW iedoc e sand a to woul vi ae Doddnd n . os m n, ndia e ha
e s
um nt
c i ns
d ol t
Fr nk.
a

( )M r Gi annone' Dodd- ankWar n
1 . ov
s
Fr
nigs
A s t J y 1 2011 da e f Dodd- a t be m e ef e tve a oac d,M r M a tn
he ul 6,
t or
Fr nk o co
f c i ppr he
. ri
and M r J ge r c ved s r w a ni f o M r G i nno r r ng D odd- ank' i pac
. a r e ei
tong r ngs r m
. ova ne ega di
Fr s m t
o H unt r W i e.For e m pl ,on J 24,2011 M r J m Gi r one s nt a e m ai t M r
n
e
s
xa e
une
, . ol
ova m
e n - lo .
M a tn a M r J ge wih cl a a c s r c m e tonsr r ng t i s hem e:
r i nd . a r t e r nd onci e e om nda i
ega di he r c

Hunt rW ie s d sop a ce i ne pur has or r on orbe or c os of
e s houl t c ptng w
c e de s
f e l e

busne son ( i y, J y 1 2011.lt nk t oddsaeagans HuntrW ie
i s
Frda j ul 5,
hi he
r it e s
be ng a e t s es f l de e a CFTC e or m e a i n a t c ng is
i bl o ucc s uly f nd
nf ce nt cto ta ki t

cure meho ofdoi busnes t rSe tons4()a 4( oft CE Ac.
rnt t d
ng i s mde ci
a nd b) he
t
2. You s d cons de s oppi ac e a e of ne pur has or r now a
houl
i r t ng c pt nc
w
c e de s
nd

gi ng yotr c t s notc t tt y wilha t t (i lqui t t i
vi
t usomer ie ha he l ve o o scl i dae her
exi tng pos to bef e J y 1 or you wil lqui t t r postons on t t
si
ii ns or ul 5
l i da e hei
ii
ha
da e. si t s f a m os c e va i a oac
t Thi s he a e nd
t ons r tve ppr h.
3. I t a t r tve,you m a wi h t pe t your c t e s t m a nt i t r
n he le na i
y s o nni
usom r o i a n hei
c r ntpostons untlt c
ur e
ii
i hey hoos t lqui t t m .H oweve ,lca
e o i da e he
r
nnota t s
t hi
tme pr di twhe he t CFTC wilc i rt ta br c oft CE Ac or
i
e c
t r he
l onsde ha
ea h
he
t
not
.

l Ed w a i f c s c s u i ge tng St nda d B al t a e t pr de you
f
s n a t uc es f l n ti
a r
lk o gr e o ovi
wih t fna i you r quie t e f ts tt e delver wihi 28 daysof
t he i ncng
e r o fec ubsiut d i y t n
sal w e s d r t gett puti o pl bef e Jul 18.Even t
e,
houl ush o
hat
nt ace or
y
hen,t
here

i silt q si n ofwhehe t CFTC woul pe m i you t mait n your
s tl he ue to
t r he
d r t
o
n ai
cure c t e postons a trJ y 15 be us t y wilno ha f a ur d
r nt usom r ii
fe ul
ca e he l t ve e t e
delver wihi t r quie 28 days
i y t n he e r d
.

E- i fo Giv l ne t J g r a d M a t (u e 2 , 2 1 ( TC Ex. 1 7 a 3 .Mr
mal r m o amo o a e n
ri J n 4 01 ) CF
n
8 t) .
Gi r
ovamone' a yssi ude hi beleft t
s nal i ncl d s i ha :

( heCFTC plnst brngas resofe oreme a tonsase l a ( onda l
T)
a o i
ei
nf c nt ci
ary s M
y,

J y 18 a i te r c
ul
gans ve y ompa i t pr c ousm e a si ty whih c i
ny n he e i
t l ndusr
c ontnuest
o
ofe pr ci m eal f s l on am a gi orfna e ba i o t tdae unls
f r e ous t s or ae
r ned i nc d ss n ha t
es
delver i made a l s on a s tt ed ba i t a de ior whih is t
i y s
, t ea t
ubsiut
ss o
post y
c s ues he
e va e of an non- ota e wa e
qui l nt
neg ibl
r hous r ept t t uli t c t e ,
e ec i o he tma e usom r
wihi 28da oft s l
t n
ys he ae.
1 a 2.Thus M r Gi nnone r ie t r d t g r ga di t i
d. t
, . ova
a s d he e la e r ng he mpac Dodd- a
t
Fr nk
woul ha o Hunt rW ie.
d ve n
e s Unde t Dodd- a a ndm e st t Act Hunt W ie
r he
Fr nk me
nt o he ,
er s

woul bebr ug unde t CFTC' j idi i a woul rs a s tbr
d
o ht
r he
S urs cton nd
d ik ui oughtby t
he
CFTC . unt r W i e w as no a t ly de i rng m e al t r t lc t e s a i w asnot
H e
s
t c ua l lve i
t s o e ai us om r nd t

pr di non- ta e war hous r c i s t r t l c t
ovi ng
nego ibl
e
e e ept o eai usomer wihi t nt e g
s t n we y- i ht
da ,a Dodd- a r r d.M r Gi l
ys s
Fr nk equie
. ovamone' r commenda i we e une voc :
se
tons r
qui al
Hunt r W i e had t s dow n orc nge is ope a i by J y 1 2011 i notbe or i
e
s
o hut
ha
t
r tons
ul 5,
,f
f e, n
or rt a d la lt
de o voi i biiy.

Alho h M r Gi nnone' r omm e tons we e una guous M r M ari s nt a
t ug
. ova
s ec
nda i
r
mbi
, .
tn e n
e- a lt ts
m i ha nme day as ng,çA. lco r c t tJ hn i es e ily s
ki ç m
r e t ha o s s nta l ugge tng t twe c os t
si ha
l e he

compa ' #.a l.M r J ge ' r s e co ime he a M r M a tn unde sood Hunt rW ie
ny?'f t
. a r s e pons nfr d
nd . ri
rt
e
s
c
ouns ls l al a c by sai t-ha , i my o ni as t pur yor of t wort c e
e ' eg dvi e
t tngs û- t n
l
pi on, he
ve
he
s as
s na i was es e i l hi opi on. I M r M a tn a M r J ge unde sood M r
ce ro,
s ntaly s
ni ' d. . ri nd
'
. a r
rt
.

Gi nno ' sae st tt Dodd- a e oreme a hort j opadi d HuntrW ie'
ova nes ttment ha he
Frnk nf c nt ut iy e r ze
e ss
busnes a tvii . n f t t y r c nied t y coul no l rc i t i s he e.
i s c i tes l ac , he e og z he
d onge ontnue her c m

1
9

Ye ,when M r Gi l
t
. ovamone s ta e mai t M r M a tn a M r J gera
en n - l o . ri nd . a
boutt e we ks
hr e e
lt r s eki t d t r ne whe he t y ha i plm e e a of hi r c me to ,he
a e e ng o e e mi
t r he
d m e nt d ny
s e om ndai ns

la d t tv r lte h d c n e S e E- i fo Giv n o e t M a t (uy 1 2 11
e me ha e y i l a ha g d. e mal r m o a n n o ri J l 2, 0 )
t
n
(
CFTC Ex.1 a 5 .On J y 1 2011 a opposd t he di M r Gi mone' wa nngs Mr
69 t )
ul 2, , s
e o e ng . oval
s ri , .
M a tn saed t the a M r J rwoul r us t cos down t c
ri t t ha
nd . age
d ef e o l e
he ompany i t y wer unabl
f he
e
e
t r c a de lwih a Unie Stt de io y t r eve acualdei r o me a swihi t
o ea h
a t
t d aes post r o ec i
t
lvey f t l t n he
t t e ghtda pe i pur ua t Dodd- a I r pons t M r M m i ssaeme t tt y
wen y- i
y rod s nt o
Fr nk. n es e o .
n' t t nt ha he
we ewilng t vi a et l i ta ofs tng Hun e W ie down,M r Gi nnonewase n
r li o olt he aw nse d
huti
tr s
. ovn
ve
m or ada nta
e ma bouthi a yss dl yo c nnotbes et tyo c n ge dei r i plcewihi
s nal i: tf u a
ur ha u a t lve y n a
t n
t 28 day pe i ie,by Aug t1 you s ul s down untlyou ar .You c d pe s l
he
rod, ..
us 5,
ho d hut
i
e
oul r onaly
be g ly ofa f l ' 1
uit
e onyl' d.

Tha s
t ame day, afe r e ng M r Gi
tr eviwi
. ovnnnone' wa i about t po e i f
s m ngs
he t ntal or
c i i cha ge bei br
rm nal r s ng oughtag ns t m f t rac i ,M r J ge s nta e- i t M r
ai t he or hei tons . a r e n ma l o .
M a tn s a i t ton Frda J y,1 2011 ç e d i i we s tdow n t e ie com pa or
ri t tng ha
i y, ul 5,
, l ec de f
w
hu
he ntr
ny,

a J h k o n ne sy g)û rs i@)'E- i fo J g rt M a t (u y 1 , 01 )( TC
s o n Giva no ) a s, we ik t.'' mal r m a e o ri J 1 2 2 1 CF
n
Ex.18 a 1 .Mr J erwa ke nl a r oft c c sa ia et t m a t cons nce
9 t ) . ag
s e y wae he hoie valbl o he nd he eque s
of c i ng t o r t Per ps e
ontnui o pe a e. ha ven m o e a a e of t c e nc s w as M r M ari w ho
r w r
he ons que e
.
tn,

wr t i a e mal oMr J g r l t a yl kwewil a ea j ii c ls'1
oe n n - it . a e ,l h n uc
Wi
lh v d onng el. d.
'
( M r Cary andMr Gr s man'Advc
2) . e
. o s s ie
M r Gi nnone wa not a one i a sng M r J ge a M r M a tn a t Hunt r
. ova
s
l
n dvii
. a r nd . ri bou
e
W i e' l gali s s M r Ca e a M r Gr s a s di c s ons w ih M r J e a M r M a tn
s se
s ue . . r y nd . os m n' s us i
t
. ag r nd . r i
a s pr vi d am pl r as w hy Hunt r W i e' ope a i a busne s pl n w oul be il ga
l o o de
e e ons
e
s s r tons nd
i s a
d
le l

onceDodd- ank c m ei o e f c .
Fr
a nt fe t

20

For e m pl M r Ca ey t s ii d t tt r t begim i ofhi r e e a i w hi
xa e, . r e tte ha owa ds he
r ng
s epr s nt ton, ch

bega i M a 2011,he i or e M r M ari a M r J ge t tHunt rW ie' a ee
n n y
nf m d . tn nd . a r ha
e
s s gr ment wih
s t
t de l r we e to e ome a i nsse wih Hunt r W ie' a t lpr c ies Se Car y
he a e s r r ubls
nd nco it nt t
e
s s cua a tc . e
e
Depo. a 1
t 70: 1 1 The a e m e s whi h i l d t ta ng ag ee e s t l n
4- 7.
gr e nt ,
c nc ude he r di
r m nt, he oa

a ee nt ,a a i sr tve s r i ag e nt ,di notde c i a cur t y t wa Hunt
gr me s nd dm nitai e vce r eme s d
s rbe c ael he y
er
W ieta a t d isbusne s butHunt rW i ene rhe e sco i d t us t m a s r t m
s r ns c e t
i s,
e s ve t l s ntnue o e he nd ha e he
w ih t de l r , ho, n t n,pr de t m t t r t i c t e s. d. t 1 24.
t he a e s w
i ur ovi d he o he e a l usom r 1 a 8-

M r Ca ey ad s d M r M a tn t t he di no unde sa why M r M a tn bei ved
. r
vie
. ri ha
d t
rt nd
. ri le
Hunt rW ie had sor d me a swih e h oft Supple s i ve wha s e
e
s
t e
t l t ac
he
ir l n
gi
t e med t be t boo
o
he k

e r oblgai asoppos t s t ng E c dhol i ( s ha '1 a 1 11- 7.l a
nty i tons
ed o omehi hej oul d n hil nd. d. t 42: 1 n n
'
e- a lt M r J ge , Augus 3,2011 M r Ca e a s hi a
m i o . a r on
t
, . r y dvied m boutadic son M r Ca e ha
s us i
. ry d

had wih Mr M a tn a not t tçg ti t not fom t ( ples fom whom ( .
t . ri nd ed ha ûetng he es r he Sup ir) r
Mr

J g r p r h s llta t ee g s mea b hid t ers ls'wo l c n i t a t e a t ly
a el u c a ed h t h r wa ) tl e n h i ae ' ud o fnn h t h y cual
ha m ea sor d f HuntrW ie' r t i c t r .
d t l t e or
e
s s e al usome s
l t d ofobt ni ç e ' a M r Ca e a s d,M r M a tn a M r J ge ha DDSC
nsea
ai ng l s' s . r y dvie
not
. ri nd . a r d

is e P iin Re o cl to fr t rti c tmes ta o y t o fr e ) . .t tt e
su osto
c n ii in o ms o eal uso r h t nl l n imld . ha h
a
c
p o u e sgd a d ta o t b o s o y u Co ltrlM a a e ,Hu tr W ie S r ie ,
r d ds xite l n h t n he o k f o r laea n g r ne s e vc s
LLC,yourcint (ili i ntfe a t be iilowne oft tcolatr .'Tr s rNotce ,
le , sc s de iid s he nefca
r ha l eal' an#
is
Hu e W ie Newse tr J y 20,2011 CFTC Ex. 11 The DDSC' Poston Re onciiton
ntr s
lte , ul
,
8.
S ii
c la i
f m stoubl M r Ca ey.He advied,ltwoul be a good i a t ti you'e g ng t c im
or r ed . r
s t
i
d
de ha f
r oi o onfr

t ts e amountofphysc m e a o ur t ts e i doi m or t n wrtng t ton a
ha om
ial t l cc s ha om one s ng
e ha
ii ha
pice ofpa ra ha s eba i on whih t ma t sa e
e
pe nd s om
ss
c o ke he t t ment' Ca ey De a 1 1 21.
. r
'
po. t 52:2M r Ca e que toned t Poston Rec ii ton notce' l nguage a M r.J r a M r
. ry
si
he
ii
onc la i
i s a
nd
age nd
.

21

M a tn' de i i t ha DD SC i s t m i lg of t f c t t ne t r D D SC ,nor a
r i s c s on o ve
s ue he n i ht he a t ha ihe
nyone
el e f t tm a t ,ha ve ii d t e s e e oft m e al .
s or ha ter d r fe he xit nc
he t s
H unt W i e' ot r co el M r Gr s a unde s ood t tH unt r W i e' s m e di
er s s he uns , . os m n,
rt
ha
e
s s che
d

notr ul i HuntrW ie a t ly ha ng physca i nt y and he a s M r M a tn a M r
es t n
e
s c ua l vi
i l nve or
dvied . ri nd .
J gera s h;i wa hi beleft tt r wasûno me a att e oft r i
a
s uc t s s i ha he e
t
t l he nd
he a nbow. Ta c l
' ped al
'

bewee Gr s n a Ga no(u1 21 2011a 3: p. )(
t n osma nd udi J y ,
t 24 m. CFTC Ex.225 .l J y2011 M r
) n ul
, .
G r s a s a ed t the had expl ne t M r M a tn t tt m e al di not e s ;H unt r W i e
os m n t t ha
ai d o . r i ha he t s d
xi t
e
s

mer l had ofs the ng. Id.4
ey
f e dgi
2
I r ga ds t t Tr ns e of Com m odiy f m Hunt r W i e s nt out t t r t l
n e r o he a f r
t or
e
s e
o he e ai

c t m e s M r Gr s n e a ne t tt f m S a oute ty wha i be ng hel ho a
uso r , . os ma xpli d ha he or t ys
l
xacl
ts i
d, w nd

f whom.l nowhees yst tHW a a ofHW ' c t rde esi (houg t ma be
or
t
r a ha
nd ny
s usome alr s t h hey y )
hol ng a phys c pr
di ny
i al oduc t i r quie t m e t oblga i t H W ' dea e c t e s or
t hat s e r d o e
i tons o
s l r usom r

uli t y t rti c tme . E- i fom Gr s n t M a tn (u1 24,2011 (
tmael he eal uso r' mal r
'
osma o ri J y
) CFTC Ex.

2 ) M r Gr sma g so t a viehscin s
38 . . o s n oe n o d s i le t,
glhee i a make difr e bewe expli ng how HuntrW ie ta st
' r s
T
r d feenc t en ani
e s r de he
de i tve a phys c lm a ke s t pr de a a s ed a lt t m e t a a al
r va i nd
ia
r t o ovi n s ur biiy o e ny nd l
2 M r Gr s a sac i ns s
4 . os m n' to ugge thi r e w a m or aki t an a tve pa tei ti t f a
s s ol s
e no
ci
ri pan n he r ud
r t rt n di i e e t d couns l Fore m pl asnot d pr vi l Syl a W ila st si d t t
ahe ha sntr se
e.
xa e,
e e ousy, vi li m e tfe ha
M r Gr s a t d he Hunt W ie ç bs ut y'had me a sa t thewoul c s m t tf t
. os m n ol r
er s k ol el '
a
t l nd ha
d ontr ha ac
t he c t
o r usomer .
s Howe r i ar or d t lpho c
ve , n ec de ee ne onve s ton, t d Fr nk Gaudi t r
r a i he ol a
no he e

ween meas Th n, tl med rn t ep ei n r ij n to h a igt t ne W ie
r o tl. e he o d u i g h r l ay n u cin e rn ha Hu tr s
mi

pos e s d m e as Furhe
s se
t l. t nnor ,t oughoutt Elven h Cic to ala g e s whe t pane
e hr
he e t r ui r r um nt , n he
l
a ke M r Gr s an t expl n whe e i c d fnd e denc on t r cor t tH un e W i e
s d . os m
o
ai
r t oul i vi e he e d ha
tr s
pos es e m eal,hec i ly s hed postonsa r r i fom a we i die quesi .
s sd t s
ontnua l hi
ii
nd efaned r ns rng r ct
tons
l o s h i t nc J e St nl y M ar usa ke M r Gr s n,r i t e rhavei t i
n ne uc nsa e, udg a e
c s d . os ma ç d hey ve
n her
ho ltl ha , s s i ofasngl piceofme al' Or Ar um e a 8: Hunt rW ie
t ite nds pos e son
i e e
t ?' al g nt t 09,
e s,

201 W L 1
4
424435( 1hCi. 4) Mr Gr s a werdyes butwe ont cai onl t t
1 t r 201 . . osman ns e ,
nt o l m y ha
Hunt rW iewo d pr de me a st alr t i c t e swho r ue td t m .I o he
e s ul ovi
t l o 1 e a l usom r
eq se he n t r
e ha
xc nges he t d t El ve h Cic tt tt a e m e sbe w e n H unt rW i e a t
, ol he e nt r ui ha he gr e nt t e
e
s nd he
Suppler pur edl gave H unt W i e possess on,even w hen hehad pr ousl s at
i s port y
er s
i
evi y t ed
ot r s Hi co uc i t sm a trm e iss r i byt Fl i Ba a r ult r aut iy.
he wie. s nd t n hi te rt c utny
he orda r nd eg a o y hort

c t rta cli sno m at rwhe e apa tc a pr c ousa i ti lma ke
usome r de am
te
r
riulr e i
nd ndusra r t
m a te and,on t o he ha pr di a s a est yourc t e de e '
y r nd
he t r nd ovi ng s ur nc o
usom r alr s
r t i ci nt t tyou a e hol ng i i l ive o y' whi h m a be tke t
e al le s ha
r
di physca n nt r
c
y
a n o
mea s cfci nt y.
n pe ii nve or
1 a 2.M o hsl t ,M r Gr s a a knowl d t tsa i Hunt rW ie ha me al sor d
d. t
nt aer . os m n c
edge ha t tng
e
s d t s t e

o isb h l wo l k l t(e a u tuh, e n t o g M r M a t s ug tt ma e s c a
n t e af ud ç mos b ) n nr t ' ve h u h . ri o h o k u h
a
'
n
decaai Ta d CalBewe Gr s n a Ga no (
lrton. pe l t en osma nd udi Nov.21,2011a 11: a. )(
t 45 m. CFTC
Ex.227 .
)
. ovannone' wa ni ,a
s r ngs s
Uli t l M r M a tn a M r J ge c e t ino e M r Gi
tma ey, . ri nd . a r hos o g r
we lasM r Ca e a M r Gr s ns a c r r ng Dodd- a sr quieme sa Hunt r
l
. r y nd . os ma ' dvie ega di
Fr nk' e r nt nd
e
W ie' mil a ng saemen s a de ep i omi sons Hunt rW ie c i d ope a i afe
s s se di t t
t nd c tve
si .
e
s ontnue
r tng tr
J y 1 2011.
ul 6,

E. Pro Kno e geo heSc mesRe l tr I ia in
ir wld ft he ' gu ao y mplc to s
()NotHi Fis Rodeo-Mr Mari ' Cons ntOr r
1
s rt
. tns
e de
As M r Gi nnone waspr vi ng l ga a c t M r M a tn a M r J rr ga di
. ovn
o di e l dvi e o . ri nd . age e r ng
t Dodd- a is st te se a Hunt rW ie M r M ari s m e t belevet thi t ryhe
Fr nk s ue ha xit d t
e s , . tn ee d o i ha s hit

fveyea hit y i t pr i m eal i ty ma hi bet rs td t anayzeDodd- a s
i
r sor n he ecous t s ndusr
de m te uie o l
Fr nk'
i plc tons.I r pons t M r Gi va
m iai
n es e o . o nnone' e- i a ki M r J ge and M r M a i whe he
s ma l s ng . a r
. rtn
t r

t y had i plm e e t r omm e tons he ha m a r ga di Hun e W ie' o r tons
he
m e nt d he ec
nda i
d de e r ng
t r s s pe a i ,
M r M a tn sae ç e doi t ssnc 1
. ri t td, ç n ng hi i e 977.Thi i no my frtr de ' E- alfom M a tn
Be
ss t
is o o.' m i r
ri

t Gi
o ovannone(ul 13,
J y 2011)(
CFTC Ex.1 a 1 .
69 t )
l d,i wasnot M r M a tn wasan e cutve a Uni e whe due t t a tons of
ndee t
. . ri
xe i t m t
n,
o he c i

M r M atn and ot rrpr e ai ,t FedealTrde Commison (TTC' commenc d a
. ri
he e esnttves he
r a
si t '
)
e n
a i i t Unie Stt s DititCour,Ce r lDititof Caior a agans Uni tCr di
cton n he t d a e src
t nta src
lf ni, i t me e t

Cor a i Uni e Tr di Com or ton, f i vi def nda s i l ng M r M a tn.
por ton, m t a ng
a i and our ndi dual e nt , nc udi
. ri

23

Se Com pl, CFTC Ex. 1 ,FFC v.Uni Cr di Cor ,No.92e
.
58
met e t p.
5759 ( Ca. Se .23,
CD 1, pt

1 ) l Uni t M r M a tn a t ohe def nt si ae t t e r ofa Cons nt
992 . n me, . ri nd wo t r enda s tpultd o he nty
e
Or r Se Cons Or ras t De e nt E.Ke t Owens Ed M a tn,and Ed M ye s CFTC
de . e
ent de
o f nda s
ih
,
ri
r,

Ex.1 9, i tNo. 2 5 5 ( Ca.De . O 1 9 ) Th Co s n Or e e j i dMr M at
5 Unme, 9 - 7 9 CD l c 2 , 9 4 . e n e t d r none . ri
,
n
fo û r v dn s bsa ta a ssa c t a yc mmo iisrtie wh m ( k o )i f ingt
r m t o i ig u tn il s itn e o n o dte ealr o he n ws s al o
p
i
d s ls a maeil a t i cu i g , b tn tlmie t , tetuea u to c mmiso sa d
ico e ny tra f c, n ld n l) u o i td og h r mo n f o sin n
)
f s' 1 a 6.The Co e Or rpe ne l r sr i d M r M a tn fom mir pr s ntng t
ee .' d. t
ns nt de nna nty e tane
. ri r
se e e i he
l gr ofrs a s a e wih a i t e i c modii ;t lkelhood t ta c umer
' ee
de
ik s ocit d t n nvesm nt n om
tes he i i
ha
ons
w oul e r a pr i on a i s m en ; a t a ount of f s or any ot r m a era f c
d an
oft
n nve t f' nd he m
ee
he
t il a t

o j ei ey maeilt a c ns me ' d cso t iveti a c mmo i o oh r iv sme t
be tv l tra o o u rs e iin o n s n o dt r t e n e t n
y
ofe i 1 a 5. r M a tn r ceve a a e t a deby t Cons ntOr r whih de al d
f rng. d. t M . ri e i d nd gr ed o bi
he
e
de , c t ie

wh two l c n t uefa da de pli dwh t ewa p r n n l e j ie fo d i .
a u d o si t r u n x ane a h s ema e ty non d r m ong
t
He e,M r M ari a M r J ge de ope t H unt r W i e s m e t i ul t t
r
. tn nd . a r vel d he
e
s che o ns a e hem f om
r

r t l c t e s c am s M r M a tn a M r J r s emed t be ive t t i t y we e not
eai usom r ' l i . . ri nd . age e
o le ha f he
r
die ty s i tng ci nt,e n a t y we e c mitng fa t y c d notbe labl f t r
r c l olcii le s ve s he
r om ti r ud, he oul
i e or hei
l s s The i e
os e . y nt nded t hi be nd acoak ofa
o de hi
l
nonymiy ast y we epuli t srngs
t
he
r
lng he ti .

( )Re lt r Pr be ta I iae Hu trWie
2 gua oy o lms h t mpl td n e s
c
Asde fo M r M ari spe s
i rm
. tn' r onale re wih r gult r a
xpe ince t e a o y gencesr gar ng faud i
i e di r
n
pr i me a sta a tons M r M a tn and M r J ge we e ma a e oft is wih t
ecous t l r ns c i , . ri
.a r r
de war
he s ues t he
Hunt rW ie s he tzough l uist diec l orby i iaton,r atd t Hunt rW ie'
e
s c me lr
aws t hat r ty,
mplc i el e o
e
s s
a tonsi deae f a
c i n lr r ud.

24

()
a

Aril Re r ngCo
tce aadi
mmodiisFrud Cas si Fl i
te a
e n orda

Mr M at a dM r J g rweema ea r o t eCF Se p nd dj rs ito a e ry
. ri n . a e r d wae f h TC' x a e u idcin s al
n
a M a c 2011 On M a c 23,2011 ChrsJ i a at ne f wa ded t M r M a tn a M r
s rh
.
rh
, i an, n tor y, or r
o . ri nd .
J era ari e t tdicus ed t ma vitm swho wer t ke adva age ofby uns r pul
ag n tcl ha s s he ny c i
e a n
nt
c u ous

b o esa d d ae s J n Bu sen fi l Re lto ,Loso s Ca Le v God I v so s o
r k r n e lr. o rti , t e gua in t fRik n a e l n e tr n
t
Sh y Gr
ak ound,Sun Se i l M ac 1 2011 CFTC Ex.1 ( ri fe ,* iteRe aton' .
ntne, rh 9, ,
68 heena tr ç tl gul i '
L
)
Alhough much oft a tcl f us d on t f d t tpr c ousm ea busne s a ta a to
t
he ri e oc e
he a ha e i
t l i s es nd r ns c i ns
c
ondude i Fl i ha g unr ult t a ho a s r a r oft pe ng f de al
d n orda ve one eg aed, he ut r dvied e de s he ndi e r
r ult r c nges as oc aed wih Dodd- ank.l e a el f l wi t dic son of t
eg a o y ha
s it
t
Fr
mm dit y olo ng he s us i
he
c i na hit r oft i vi l who s i t r t lc t e si Hunt rW ie' s he e s e
rmi l so y wo ndi dua s
olcied e ai usom r n
e
s s c m ,e
M a tn De Fe 26,201 t a tc e expl i d:
ri po. b.
4, he ri l
a ne

M or f r ove sghtoft gol fr a a st beon t ho ion when a ne
e ede al r i
he d ims ppe r o
he rz
w
1 w t ke e f t i J y.Com pa es t t s l pr ci m et s i l ve a
a a s f ec n ul
ni ha e l e ous
al n e r ged de s
al
wilha t de i rt gol wihi 28 da t t c t e ora l a i whe e
l ve o lve he d t n
ys o he usom r
oc ton
r
t m ea sa e ea iy a e sbl s t buye c n ve iy t t acualy e s.I
he tl r sl cc s i e o he
r a rf hat hey t l xit f
t gol in' physc ly delver d, t ta a ton wil f l unde CFTC
he
d s t
ia l
i e he r ns c i
l al
r

j rs ito a d c mp ne a dt i b o r wil e dt b fd r l lc nsd t
u idcin, n o a is n her rkes l n e o e e eal ie e o
y
w or i c m odii s
k n om
te .

fite Re aton,a 5.M r M a tn a M r J ge r c i d t s e a to of Dodd- a s
tl gul i
t
. ri nd . a r e e ve hi xplnai n
Fr nk'
i plc tons m or t n f m on hsbe or is i pl e a i
m ia i
e ha our
t
f e t m em nt ton.

(
b)

Fedea TrdeCo si sAci Ac ns 2020
rl a
mmison' ton ai t /

l Aprl 2011 t CFTC fl a a ton a ns 20/ Tr di Co pa l ,20/
n
i
, he
ied n c i gai t 20 a ng m ny, nc. 20

Pr co M eas l ,a isofi r ( l vey,t 20' i t Unie SttsDititCo t
e ius tl, nc. nd t tces coledi l 1
20/ ' n he td ae src ur
)
f t Ce r lDiti ofCalf ni .See 20 20 Compl CFTC Ex.1 2,CFFC v 20 20,No.11
or he nta srd
ior a
/
.
8
. /
-

000643 ( Cal Apr 26,2011.The Co ai alge t tfom J nuay 2006 t oug t
CD . .
)
mpl nt le d ha r a r
hr h he
flng of t ac i n, i Apr l of 2011 20 20 i d c t d a defa d c t e s a
ii
he to n
i
, / û
ha hea e nd
r ude us om r nd

pr pe tve c t
os c i usomer by l ng a
s
yi bout t lkei
he i lhood of pr ii a c e i t ne
oftng, nd onc alng he ar

c rany ofs tnta l s ,whe i si wih' 20/ 1 at2 ! 1 The 2020 Compli
e tit
ubsa il oses n nvetng t ' 20. d.
.
/
ant
s htt hol 20 20 la ef de r udi r t lcusome soutofa l a t$ m ilon i l s .
oug o d / ibl or fa ng eai t r
t e s 4 li n os es
M r Gi nnone me i d t 20 20 Co pl nt i a e- lt M r M a tn a M r
. ova
ntone he /
m ai n n mai o . ri nd .
J r on M ay 3,2011 cl i i t t i was ti pe a i ' t t t s k w ih hi .Se E- a l
age
, a m ng ha t
çm r tve ' ha hey pea
t m
e m i

fom Giva
r
o nnonet M a tn a J ge ( a 3,2011 (
o ri nd a r M y
) CFTC 1 2 a 1 .On Ma 1 2011 he
8 t)
y 3,
,
f m a de t 20 20 Co pli t M r M a tn a M r J ge a d r c e t t t y r a
o r d he /
m a nt o
. ri nd
. a r nd ie t d ha he e d
par gr phs 56 a 60 of t Co pl n i pm i a .Pa ag a 5 r ads i pe tne pa t
a a
nd
he m ait n
culr r r ph 6 e , n ri nt r ,
ç he a c t
ç n usomers nds 20/ M e a s f
W
e
20 t l unds t pur ha e physea m e a s 20/ M e al wies
o c s
i l t l, 20 t s r

t ef t at r pa t ( e W ie, a us t m t e e i o lveage ta a tonsi
hos unds o hid ry, Huntr s ) nd es he o ntr nt e r d rns ci n
t na of20/ M eas'2020Compl,CFTC Ex.1 a 21!56. rgr ph60sae ,
he me
20 tl. /
'
.
82 t
Paa a
tts
Addii ly,20 20 M e a s m ir pr s nt how c t e f
tona l
/
tl se e e s
usom r unds a e beng us d.
r i
e
Spe ii ly,20 20 M eal mir pr e s t t i pur s s physc me al,t t
c fcal
/
t s se es nt ha t cha e
ial t s ha
tteha pa s t t c t e ,a t t me a i sor d i as c ede io y.
il s s ed o he usom r nd hat he t l s t e n e ur post r

Sic 202 M easo l h sa a c u twi ( mtrW ie i wh c i e tr it
n e / 0 tl ny a n c o n t Ht e s ) n ih t ne s no
h
lve a d ta aci i is own na e not t na e of t c t e , t
e r ge r ns tons n t
m ,
he m
he usom r he
cus om er has no r ght t a m e a s a tte t a m e al t t m i be
t
i
o ny
t l nd il o ny
t s ha
ght
pur ha e doesnotpa st t c t e .
c sd
s o he us om r'
'

f a 22!60.
#. t
M r Ca e t tfe t t Hunt r W ie i taly r t i d hi a hi f r r lw fr ,
. r y esiid ha
e
s nii l e a ne m nd s o me a im
De y & LeBoeuf i M a of2011 be us oft 20 20 aci Se Ca e De ,a 1 7- 2.
we
,n y
ca e he /
ton. e r y po. t 9: 1
Hun e W ie' c e nsr r ng t i ia i oft Jp lp aci s med t i r a e e n
t r s s onc r ega di he mplc tons he /
ton ee
o nc e s ve
f t rafe t c ta nt d Re ei ri t 2020 m at rfl aRe twih t ti c t
urhe tr he our- ppoi e
c ve n he /
te ied
por t he ral our.
The Re tsa e t ta tri si tng a i e ve ng r l va i i dual,hew a no ta e
por t t d ha fe nve tga i nd nt r iwi e e nt nd vi s
s t çbl

t obti a e net e de e t veiy t e senc ownes pgla s fke pi oft
o an nd xami he vi nc o rf he xit e,
rhi , nd ae e ng he
pr c ous m e a spur ha e a hel i t c t er s a count .' #.a 27: 22;s e al o E- a l
ei
tl
c s d nd d n he us om ' c
s' f t 18e s m i

26

fo Ma t t Ca e ( a 23 2 1 (
r m ri o r y M y , 01 ) CFTC Ex.1 3 a 1 (ç h Re ev r alrtr ewe ks
n
8 t ) tT) e c ie , fe h e e
(
oftyi hasbee una et fnde de et tpr
r ng,
n bl o i vi nc ha oducte ss' .
xit.)
'
Upon la ni oft Re i r s fndi ,M r J r s a e mai t M r M a tn,M r
e r ng
he ceve ' i ngs . age ent n - l o . ri
.

Ca e a M r Gr s
r y, nd . os man r l yi hi conc r f Hun e W ie sf lr .M r J rwr e,û-hi
e a ng s
e n or t r s ' utze . age ot t- s
l

i ralyc us ngne l)whihi a rngonma l l. twoul s e t i c t t tt
s e l r hi ws, c s ngei
ny eves Tha
d e m o ndiae ha he

n x s o t d o i wi El n e W ie i te i d e d b l vete ei n p o u t'd.
e t h e o r p s t lu tr s ,t h y n e d o ei h r s o r d c . 1
h l
e
'
()
c

F o iaOfieo F n n il g lto sAci na an tM ia
l rd fc f i a ca Re uain' to a i s d s

A mon h a trt FTC fl t 20 20 Compli ,i lt J 20l1, heFl i Ofi eof
t fe he
ied he /
ant n a e une
t
orda fc

Fi nca Re ai (C
na il gulton CFOFR' rquese doc nt fom HuntrW iei rlto t iscrmi l
' e td ume s r
I
e s n eain o t i na
i s i ton ofM i s A s e M ana m e ,a he Hunt W i e de e .M r G r s a expl i d
nve tga i
da
st
ge nt not r
er s al r . os m n
a ne

t taFOFR r pr s nt tve çM s Gr
ha
e e e ai , û . omni ki' a ke çW he e i t de ior f ciiy whe e t
c , s d, i r s he post y a lt
'
r he

p e i u mea i so e 'E- i fo Gr sma t Ma t (uy 5 2 1 (
rco s tl s trd. mal r m o s n o ri J l , 01 ) CFTC Ex. 3 a 1 .
'
n
24 t )
Ac r ng t M r Gr s
co di o . os man, M s Gr
. omni ha pos d t t i
cki d
e ha mporant quesi t hi on
t
ton o m

num e ousocc sons M r M a tn r ponded t M r Gr s a se- a lt ts m e da m ii û1
r
a i . . ri es
o . os m n' m i ha a
y, tng, t
bei ve our r s e t t quesi ofwhe e t m ea i sor d nee t be c e uly t ht
le
e pons o he
ton
r he tl s t e
ds o
ar f l houg
out' I
.' d

Jl Beti t H ou
tng he
se

M r M a tn a M r J ge br d a to ng t c i con r lng t pr e s a
. ri nd . a r agge bou wni he asno, toli he oc s , nd
t a lt t C
he biiy o ç
make m one no ma tr whe e t m a ke s s f. E- a lfom J ge t Pa
y
te
r he r t hit' m i r
'
a r o ndor
a

Pa (une 1 2008)(
ng J
,
CFTC Ex.1 a 1.The rc ve l alad c a war ngsr r ng
80 t ) y e ei d eg vie nd ni egadi
Hunt rW ie' Dodd- a vi l tonsa fa e tc
e
s s
Fr nk o ai
nd r udul n onduc .Ye ,t y pum os f l decde t
t t he
e uly i d o
rs crm i l a c vi la lt by co i ng H unt r W ie' f a
i k i na nd i l i biiy
ntnui
e
s s r udul nt a il al ope a i
e nd leg
r tons.

27

Appr ma ey 3, r t i c t e s l tove $5 milon be aus ofHuntr W ie' s heme.
oxi t l 200 e al usom r os r 2 li
c e
e s sc
The hous c l otwi whe i vi a i oft l w , he ga e i r gge
e am
n
n, n ol ton he a t
m s i d.

I.
l

STATUTO RY BACK GROUND

Se to 7 2 o te Do d F a Ac e p n e t s o o te CFTC' j rs ito t
cin 4 f h d - rnk t x a d d he c pe f h
S u id ci n o
i ude fnanc d c
ncl
i e omm odiy tans tonswih c ume s t r by gr ntng t CFTC t powe
t r aci
t ons r , he e
a i he
he
r
a aut iy t e ur t t tans tons i vi c
nd hort o ns e ha r aci
nvol ng omm odii s we e t be e cu e on a
te
r o
xe t d
n

e c a g a d s be tn s h ta a to t t e a t-ru p o so s o te Ac a
x h n e n u j ci g uc rns cins o h n ifa d rviin f h
t nd
Com mison Reg a i .
si
ultons
Count Two of t Com pli aleg t t Hunt r W ie M r M ari a M r J ge
he
a nt l es ha
e
s, .
tn, nd . a r

c
ommitd fa i vi ai ofSecin 41oft CommodiyExc ngeAc.Secin 4b()2)of
te r ud n olton
to 7 he
t
ha
t to
a(
t Ac saes i r l ntpa t
he t t t , n eeva
r:

( Unl ulaci
a) awf tons
I s lbe u a f t hal
nl w ul

()
2

fra y p ro ,i o i c n e to wi a y o d rt ma e o t ema ig
o n e s n n r n o n cin t n r e o k , r h kn
h

of a c r c ofs l ofa c
, ny onta t ae ny omm odiy f rf t e dei r ors p,ha
t o ' ur lve y, wa t t
u
i m a ,ort bemade f oronbe fof orwih,any ot rpe s o he
s de o
, or
hal ,
t
he r on, t r

t a o o s b e t oter lso ad sg ae c nrc mak t
h n n r u j c t h ue f e in td o ta t r et che to de r ud ora tm ptt c a ordefaud t ot rpe s
o a r fa
te
o he t
r
he he ron;

(
B)

wiluly t ma orc et bema t t ohe pes a fle
lf l o ke aus o
de o he t r ron ny as
r por or s a em e or w iluly t en e or c us t be e e ed f
e t t t nt
lf l o t r
a e o
nt r or

t eoh rp ro a yf lerc r ( r
h te es n n as e o d; o l
wiluly t dec i ora tm ptt de ei t ot rpe s by a mea
lf l o eve
te
o c ve he he r on
ny
ns
wha s ve i r ga d t a or r or c r t or t dipost o or
t oe r n e r o ny de
ontac
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e cu i of a or r or conta , or i r ga d t any ac of age y
xe ton
ny de
r ct
n e r o
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nc
pe f med,wih r s t t a or r or con r t f r or i t ca e of
ror
t e pec o ny de
tac o , n he s

paag a ( ,wiht ot rperonl)
r r ph 2) t he he s .

7U.. j6 ()2 .
SC. b a ()
28

CountThr al ge t tHunt rW ie, r M a tn,a M r J ge c
ee le s ha
e s M . ri nd . a r omm it d faud under
te r

S cin 6 c( )o te Ac a Co sin Re ulto l 0..S cin 6 c( )a d Co sin
e t ()1 f h t nd mmiso g ain 8 1 e to ()1 n mmiso
o
Re u ain 1 0. weeme n t ç u me tt (
g lto 8 1 r a t o t g n he CFTC')e itn a t o iyt p o i tfa d a d
a
S x si g uh rt o r hbi ru n
mani ai n. Pr bii o t Em pl
pul to ' ohi ton n he
'
oyme ,orAte e Empl
nt
tmpt d
oyme ,ofM a pul tvea
nt
ni ai nd

De e tv De c sa Pr hbto o P ieM a iu ain, 6 Fe Re 41 9 ,41 01(uy 1
c pi e vie nd o iiin n rc np lto 7 d. g. 3 8 4 J 1 4,
2 1. e to 6 c o t Ac i c dfe i 7U. C. 9 1 , ndp o d s i r lv n p r:
01 ) S cin () f he t s o i d n S. j ( ) a r vie ,n ee a t a t
i
l s l be unl w f f a pe s di e ty or i r ty,t us or e pl or
t hal
a ul or ny r on, r c l
ndiec l o e
m oy,
at
tempt t us or e oy, i conne ton wih ... a c r t of s l of any
o e
mpl n
ci
t
ontac
ae
c
omm odiy i i e sa e c me ce ...a m a pultve o de ptve de c o
t n nt r tt om r
ny ni a i r ce i
vie r
c rva ,i c t a nton of s h r l a r ul t ons as t Com m i s on
ont i nce n on r ve i
uc u es nd eg a i
he
si
s l pr ul a e.
ha l om g t

7U. C. 9 1 .
S. j ( )
Comm isonRe a i 18 1, tt s i pe tne pa t
si
gulton 0. sa e , n ri nt r:

()l s l beunlwf f a pes die ty ori rcl i co ci wih
a t hal
a ul or ny ron, rcl ndie ty, n nne ton t
a ... c r t of s l of a c m o t i i er t t com m er e ...t
ny
ontac
ae
ny om diy n nt s a e
c
o
it ntonaly orr ckl sy:
ne i l
e es l

() Us o e oy,or atmptt us o e oy,a ma pultve
1 e r mpl
te
o e r mpl ny ni ai
de c s hemes a ttc t de r ud;
vi e, c
or rii e o fa

( Make o atmptt ma a t nz ormila ng sae ntofa
2)
, r te o ke, ny mt e
se di ttme
ma e i f tort omi t sae ama e i lf c ne es a y i or rt
t ral ac
o t o tt
t ra a t c s r n de o

ma t satme smadenotuntueormila ng;( )
ke he t e nt
r
se di or
( Enga ,orat
3)
ge
temptt e e,i a a t prci ,orc s of
o ngag n ny c, a tce
oure
busnes whi h o r t or wo d oper t as a fa or de i
i s, c pe aes
ul
ae
r ud
cet
upon any per
son.

1 C. R.j180.
7 F.
1.
CountThit n oft Compli cai st tHunt W ie,M r M a tn,a M r J ger
ree
he
ant l m ha
er s
. ri nd . a

ai d and a te t vi a i oft Ac t twer c mit by o he de e nt i t i t t
de
be td he oltons he t ha
e om ted
t r f nda s n he nsan

matr Se ton 13( oft Ac sae ,i pe tne pa t
te . ci
a) he t tts n ri nt r:

29

Any pe s who c
r on
omm is or who wiluly ai , abes c
t,
lf l ds
t, ouns l, c ma ,
e s om nds
i
nduce ,orpr ur st c
s
oc e he omm ison of avi ai ofa oft pr so oft s
si
ol ton ny he ovii ns hi
,
c ptr ora oft r e ,r a i , or or r i s pur ua t t s cha e ,
ha e , ny he uls egultons
de s s ued s nt o hi
pt r
orwho a t i c
c s n ombi ton orc er wih any ot rper on i a s h vi a i ,
nai
onc t t
he
s n ny uc olton
orwho wiluly ca e a a tt be done oromit d whih i die ty pe f me
lf l us s n c o
te
c f r c l r or d
o om it b hi orano he w oul be a vi a i oft pr sonsoft s c pt r
r ted y m
t r
d
ol ton he ovi i
hi ha e
or a of s h r es r a i ,or o de s may be he d r ponsbl f s h
ny
uc ul , egultons
r r
l es i e or uc
vi a i a aprncpal
olton s i i .

7U. C. 1 c a .
S. j 3 ()
11
1.

LEGAL ANALYSI
S

if eg t i arme alsat et sr st c u a pur eofpr eci t i ent
ç' Ac) s e di t ut hat e ve he r cil pos
-h
ot tng he nnoc
i vi
ndi dual i sor who ma know ltl a
nve t
y
ite bout t i rc i a c plxiis of t
he ntiaces nd om e te
he
c
omm odii ma ke - fom bei m il orde ei .' CFTC v.RJ Fiz r d ( Co. 31 F.3d
tes r t r
ng sed
c ved '
tge al Q , 0

1 21 1 29( 1hCi.
3 , 3 1 t r 2002) c r.de e 1 S. . (
, e t nid, 24 Ct808 2004)
.

A.Se to 4 o heAc -Fr u
cin b ft
t ad
Count Tw o of t Co pl nt a l ge t t Hunt r W i e, M r. M a tn, a M r Ja r
he m ai le s ha
e
s
ri nd . ge
com m it d f a i vi a i of Sec i n 4b of t Com m odiy Exc nge A c . A de e nt i
te r ud n ol ton
to
he
t
ha
t
f nda s

la e unde Se ton 4b()oft Ac i t CFTC de taes ()t ta mirprs nain,
ibl
r ci
a
he t f he
monsrt : 1 ha
se e e tto
mila ng sae nt or omison wa ma ; ( wih s intr and
se di
ttme ,
si
s de 2) t ce e ;

ttt
ha he

mir pr entton,sa e
se es a i t t ment oro ison wasma e i . 1 at1
, m si
t ral d. 328.Faiur t esa ih any one
l e o t bls

oft s elm e si dipostvea woul pr cude t CFTC' fa cl m s 1
he e e nt s s ii nd
d e l he
S r ud ai . d.

()M irpr s n ain , se dn Sa e ns o Omiso s
1 s e e e t to s Mila ig ttme t, r s in
I t f e of sr e de e s
n he ac
tong vi nc howi o he wie, M r M a tn a M r J ge a gue t t
ng t r s
. r i nd . a r r
ha
Hunt r W i e di no m a
e
s
d
t
ke m i r pr s t tons or de e i om i s ons çW he he
s e e en a i
c ptve
si . l t r

m ir pr e a i ha be ma de ndson t ove a lmes a a t c
s e es nt ton s en de pe
he r l
s ge nd he omm on unde sandi
r t ng
oft i onnai n c
he nf
to onvey ' I . (ntr quotto omit .Coursma fnd t twhe a
ed.' d i enal
ains ted)
t y i ha
n n
i vi l dr fs a diti e pr
ndi dua a t nd srbut s omotona a tai ng m a e i t t i r a
i l nd r ni
t ral ha s elyed t r t i
o eal

c t
usomer t t cai ltl t no rs i c
s ha l ms ite o
ik n omm odii ta a tons t i vi l has a t d
tes r ns c i , he ndi dua
ce
faudul nty.Se Cl yt Br e a Co. v CFFC,794 F. 573,580- ( 1h Ci.1 .I
r
e l
e a on ok r ge
.
2d
81 1 t r 986) n

addii cl mi t ta r t lc t e wilpr i fom c ti m a ke te , wihouta sng
ton, ai ng ha eai usom r l oft r
era n r t r nds t
dvii
t c t e oft lke i
he usom r he i lhood oft tnotoc uni i m a e i and de ptve.
ha
c ng s t ral
ce i

I r J (9 2
n e CC, 1 9 -

1 4 Trnse Bi r (
99 a fr nde) CCH)Comm.Fut L.Re !26, 0 a 41576 (
.
p. 08 t , CFTC 1 4) a fd s b
98 , f ' u

nu JCC I c v CFF 6 F.d 1 5 ( 1hCi. 9 5 .
m.
n . . C, 3 3 5 7 1 t r 1 9 )
He e Hunt r W ie m ir pr s nt f c s a ut t pr c ous m ea s tans tons i
r,
e
s
s e e e ed a t bo he e i
tl r ac i
t

ove s w.l pa tc a ,i die ty a i r c l 1 d t r t i c t e s t bei ve m e as we e
r a n riul r t r c l nd ndie ty e he e a l usom r o le
tl r
so e on t r be f Hunt r W ie pr pa e and diti e doc e s i l ng a count
tr d
hei hal.
e
s e rd
srbut d
um nt , nc udi c
sa e e s Tr f of Comm odii f
tt m nt, anser
tes onns a ta c i ton notc , t t r t i
, nd r de onfnna i
ies o he e a l
c t e s confnni t exit e of t m eal, t l ns a t pur has .Hunt W ie
usom r
ng he senc
he t s he oa , nd he c es
er s

f ie t i or t pa test tt me a si pur has we e on a fna ed bass i di not own
al d o nf m he ri ha he t l t c ed r
i nc
i, t d
t me a s a t m eal,i t r we eany a al, we enoti t r t i c t e s'na .
he t l , nd he t s f he e r
t l r
n he e a l usom r mes
Evi nc de onsr tng Hunt r W ie' c
de e m ta i
e
s s onduc c e s ii a l fom t Poston
t om s pecfc ly r
he
ii
R e oncii ton s a em e W ila M e z r r ce ve f om D D SC , w hi s a e ç dunt W i e
c la i t t nt li m
t ge e i d r
ch t t d, i er s
l

Se vc s LLC' gi)rc r r fe tta a o 9 1 / 01 y u c re tp iin s wi C D .
r ie ,
S sc e ods e lc h t s f /4 2 1 o r u r n osto t) t
h
.

Hopki M et sDi son a e'a pur ha eoft ry ounc sofgol . DDSC Poston Re ncla i
ns al vii r '
c s
hit
e
d
ii
co iiton
St t nt ,CFTC Ex.4 Acc di y, asco i me by i onnai HuntrW ie pr de , M r
aeme s
4. or ngl
ntr d
nf
ton
e
s ovi d
.
M e z rw ast ow ne oft gol I f c , M r M e z rdi notown a gol sncet gol di
t ge
he
r he d. n a t . t ge d
ny d i he d d

notexit net rHunt rW ienorhi de e boughtgol i hi name. Y e ,Hunt rW i e pr ded
s ; ihe
e s
s alr
dn s
t
e
s ovi
i or a i t D D SC t tm il d M r M e z r and ot s t t rk t y had.
nf m ton o
ha s e
.
t ge ,
her, o hil he

Ast t is ofomisons t Elve h Cic t i R. Fiz r d,f
o he s ue
s i , he e nt r ui, n J t ge al ound t tcl i i
ha a m ng

t c t n y of r ei ng hug pr is i t pr ci me as i usr wihout i or i t
he erait
ec vi
e oft n he e ous t l nd ty t
nf m ng he

pr pe tve r t i c t r t t: pe c ntoft fr ' clentl l tmone i t t
os c i e al usome s ha $
95 r e
he im s i e e os
y n he ypesof
i t nt bei adve ts 'wasa omison t twasfa enta a m at roflw . 31 F.
nvesme s ng
ried'
n
s i ha
r udul s
te
a
0 3d
a 1
t 332. l t i t nt m a t r H unt W i e t a ked e r hi t t w e on wih t r t i
n he ns a
te ,
er s r c
ve yt ng ha
nt
t he e a l

c t mes ta s cin .As Mr M a o d c nime ,n t n a o ta ta e o a c u twa
uso r ' rn a to s
. wj o o fr d ohig b u r d r c o n s
of i a untl i g t H unt r W ie. Ma o d De ,( 1 - a 5 1 - ) Hu trW iek p
fci l i t ot o
e
s
wj o p. DE 91 1 t 6:2 20 . n e s e t

and ma
nage m ei ul r cor ofa1 is do ten cle st ough t pora . Eve wih is
d tc ous e ds
l t wnsr m int hr
he tl
n t t
knowldg of t clen s l s s Huntr W ie ne r upda e t tani ma e i l or
e e
he i t ' os e ,
e
s
ve
t d he r i ng
t ra s
pr
omotona br hur s t i c t how poory is downsr am c t e s we e doi i t e
i l oc e o ndia e
l t
te
usom r
r
ng n hes
comm odii s tans tons l di notmodiy t e doc e s eve as i c i d t ofe t
te r ac i . t d
f hos
um nt
n
t ontnue o f r he
doc e st t de e sf t rus t s i i pr pe tver t i c t e s
um nt o he alr or hei e o olct os ci e a l usom r .
Hunt r W i e i s or , M r J ge , a M r M ari poc t d t i e e t Hunt W ie
e
s nve t s
. a r nd .
tn
ke e he ntr s
er s

c r d c t e sf l nsi agr e t , butne rdi pr de aswel ast f e i c ge f
ha ge usom r or oa t e d o
ve d, ovi ,
l he e s t har d or
t sor ofm e ast tdi no e s. Hunt rW ie di no i or iscle show i wasusng
he t age
t l ha d t xit
e
s d t nf m t int
t
i

t f
he undsi r ceved.l t a ofa yi t f
te i
nse d
ppl ng he undst pa of i er s on r ll nsorbuyi a
o y f nt e t ea oa
ng nd
sorng m ea s Hunt r W ie us d t f
t i
tl ,
e
s e he unds t ofs tis oblg tons The f es r t i cusome s
o fe t
iai .
e eal t r
pad r duc d t i a co f
i e e her c unt unds gr a l . Huntr W ie c i d t c r i e es and sor ge
e ty
e
s ontnue o ha ge nt r t
t a

f es eve t
e , n hought cha geswe e f no xit ts r i s
he r
r or ne sen e vce .
M r M a tn a M r J ge ,t ough Hunt W ie wiluly m ir pr e e or made
. ri nd
. a r hr
er s , lf l
s e es nt d
omisons aboutt pr ci met ta a tons a i s i t s c e. l a ton,ba e on is
si
he e ous al r ns c i
t s ue n hi as n ddii
sd
t
m iladi sa e e s a wilul om isons I fnd t t Hunt r W ie pr de a ûove al
se ng t t m nt nd lf
s i , i ha
e
s ovi d n t r l
mes a ' ha wa i vi ato ofSe tons4b. The e de e s
s ge't t s n ol i n
ci
vi nc howst tHuntrW ie m ild a
ha
e
s se nd
de ei d t r t lc t er i o e e i i o ispr i m e a s s he e.
c ve he e ai us om s nt nt rng nt t ec ous t l c m

()
2

S ine -t t a y lc w:wil a ea nn c l .'
ce tr ' h n u k
Wi
l h v Woiig el '
s

To pr s e e ,t CFTC mus s w t t t çg ee nt itnde t derud,
ove cintr he
t ho ha he çdlfnda ne d o fa

ma iult,o d c ie o gh tt ed ee d n ' c n u tr p e e t a e te d pat fo
np ae r e ev , r t a h l fn a ts o d c e rs n s n x rme e rme r m
t sanda ds of or na y ca e. R. Fiz r d,31 F.3d at 1328.Condud i vi thi hl
he t r
di r r ' J tge al
'
0
nvol ng t g y
unr as
e onabl omi sons or m ir pr e ai ...t t pr s nt a da erofmila ng (eal
e
si
se es nt tons
ha e e
ng
se di rti

c so r)wh c i ete k o t t eDee d n o s o vo st t(h )De e d n mus h v
u t me s ih s i r n wn o h fn a t r o b iu ha t e fn a t t a e
h
bee awa e of i' ha be f
n
r
t' ve en ound t me t t s i nt r r m e . 1 (nt lquotton
o e he c e er equie nt d. i ema
ai

omitd)
te .
M r M a tn ha da t da ove sg ove Hunt r W ie' ope ai . M r J ge had t
. ri d y-o- y r i ht r
e
s s r tons . a r
he
a hort t sg c r c sf Hun e W ie,he pe wih t sr t c plnni , a pr vi d t
ut iy o i n onta t or t r s l d t he taegi n ng nd o de he
c a t a c pialne es a y t ke p t busne sr nni . To a gue t tt y be ived i good
ont c s nd a t c s r o e he i s u ng
r
ha he le
n
f t t tHunt rW ie wa m a ng l nst t de l r orr t i c t r , t tt y owne a
aih ha
e s
s ki oa o he a e s e al usome s ha he
d ny

me a s a t t t i doc e s we e not fa e i i ausbl . The we e t
t l, nd ha her
um nt
r
r udulnt s mpl i e
y
r oo
knowl dgea e a t i ved i t pr e st pla i a e. Hunt r W i e a t d r c e s y
e
bl nd oo nvol n he oc s o e d gnor nc
e
s c e e kl s l
and i en i ly t de i a de r ud t r t i c t e s
nt tona l o ce ve nd f a he e a l us om r .

Huntr W ie was t m a t r i be nd t m ulil ve s he e. M r J r a M r
e
s
he se m nd hi he
t-e l c m
. age nd
.
M a tn c d ha c r td t m ir pr e a i a dec ptve omi sonsi t ag ee e s
ri oul ve orece he s e es nt tons nd e i
s i n he r m nt

t y entr i o wih t de e s t tani ma e i l i pr de t de l r , and t m any
he
e ed nt t he alr , he r i ng t ras t ovi d he a e s
he
doc nt Hunt r W ie s nt t t r t l c t r , i l ng t Poston Rec iiton
ume s
e
s e o he eai usome s ncudi he
ii
onc la i
notc ,t Tr ns e of Com m odiy f m s tad c im a i , and account s at ent Hunt
i es he a f r
t or , r e onfr tons
t em s.
er

W ie a l d isdeae st de r ud t r t i c t e sa p os tve c t e st y s i t
s lowe t
lr o f a he e al usom r nd r pec i usom r he olcied
f r Hunt rW i e' be i .Si H unt r W i e ove s w al t a a tons M r.Jager a M r.M artn
o
e
s s neft nce
e
s
r a 1 r ns c i ,
nd
i

had t a lt t i or r t lc t e soft mir e e a i and dec ptve saeme s but
he biiy o nf m eai usom r
he sepr s nttons
e i t t nt ,

33

f l d t do s l t ad,Hunt r W i e con i
aie o
o. ns e
e
s
tnued t f a on t c t er w hie i r a d t
he r ud
he us om s
l t e pe he
be tt oft rl s .
ne i s hei os es

()
a

Hu trW iesRein eCli
n e s ' l c ams
a

M r J ge a M r M a tn s ek t a ol t m s ve by c am i t y r as bl r le
. a r nd . ri e o bs ve he el s
l i ng he e ona y e id
on s c t t al ge y afi med Huntr W ie s s he e di not f l unde t CFTC'
our es ha le dl tr
e
s' c m
d
al
r he
S

j rs ito b c u et e ta a to dd n tiv le lv r g d c nr cs o b c u e te a ta
u idcin e a s h rnscins i o n ov e ea e o ta t r e a s h cu l
delve y e e i a t lne ofbusnes e e i oft Ac a id.5The c am t tt y
i r xc pton nd he i
i s xc pton he t pple 2
y l i ha he

rle on:()HuntrW iesc e;( t CFTC' 1 l eprttveLetr Ba Aci tes
eid
1
e s ' ouns l 2) he
S 985 ntr eai te , nk tvii
l vi t Sae ofPr co M eas Comm.Fut L.Re (
nvol ng he l
e ius tl,
.
p. CCH)! 22, (
673 CFTC Aug.6,
1 5)( ri fe 11 I e prt i Letr);a ( t Lo
98 heenalr :985 ntr eatve te ' nd 3) he ndonBuli M ake Asociton
lon r t s ai
and t For gn Exchange Com m it s 1994 l ernatonal Buli M as er A gr ent
he
ei
tee'
nt
i
lon
t
eem

( r nafe,ç a t Agr e
heei tr ç ser e menf'.
M
)
()
i

ThePli M e ni oft Ac i Una guous
an a ng he t s mbi

Be or del ng i o t i r la e cai ,I fr t not t t none of M r J ge a M r
f e vi nt her ei nc l ms is
e ha
. a r nd .
M ari scai sc n be f
tn' l m a
ound r as
e onabl bec us t pl i mea ng oft saut y l nguag i
e a e he an
ni
he t t or a
e s

una g us a t Elvent Cic tf und i Hunt Wie - F. -,201 W L 1
mbiuo , s he e h rui o n
er s , - 3d - 4
424435( 1h
1t
Ci.201 .l Huntr Wie,t Elve h Cicui a yz t Ac' wor ng,aswela Mr
r 4) n
e s he e nt r t nal ed he ts di
l s .
J era M r M ari sa g e s t r a h isfndi .
ag nd . tn' r um nt ,o e c t i ngs
A s t t tl ve a d or m a gi
o he ûe r ge
r ned ba i ' or f na ed ta a ton on a s m ia bas s
ss'
i nc r ns c i
i lr i

lngua of Dodd- a s 7 U. C.b2()2)D)i(l,t Elve h Cic t f
a ge
Frnk, ee
S.
c ( ( ()l) he e nt rui ound t t
ha
G e r ng r f r ge r l t t a lt t c r hi va ue am ount of a c m odiy or a
û ve agi e e s ne aly o he biiy o ont ol gh- l
l
s
om
t
secur t w ih a com par i y s al val ofcapial know n as t m ar n.'H unt W i at *5
iy t
atvel m l ue
t ,
he
gi '
er se,

2 I my Fe ua y 1 ,201 O r r If
5n
br r 9
4 de , ound t tt e e i unde t Ac di nota y t
ha he xc ptons
r he t d
ppl o

HuntrW ie' s me.( 281.
e s s che DE )
34

( i
notng Gls ar Commodiy Fut e Trdi
o s y,
t
ur
a ng Commison, htp:/
si
t /www.fcgov/
c t.
Cons epr eciG duc tonce e/
= r ot to
ai ntrcFTcGl s l/nde ht (as viied Fe
osa i x. m l t st
b.

201
4:.

TheEl ve h Cic tsa e t tçlunt rW i edei lve ag sm ia i am e o a
e nt r ui tt d ha ll e s tned e r e i l dy n
m r ndum t is
ot
hol ng c pa s pot nta i ve t s i e a ne is ope a i by de c i ng l ve age a the
di om ny'
e i l n s or ; t xpl i d t
r tons
s rbi e r
st

us ofa s le amountofca tlt do t wor ofa muc lr r a
e
malr
pia o
he k
h age mount''1 ( i
.' d. quotng

Busnes Oveviw ofHuntrW ieCo
i s re
e s mmodii ,LLC ( 4- a 21) l a ton,heElve h
tes
DE 4 t ).n ddii t e nt
C ic t f und t tM r M a tn a M r J ger s a t m pt t r ad a s c fc dur tonalr qui e ent
r ui o
ha
. ri nd . a ' te
o e
pe ii
ai
e rm

a t e nd t defnii ofa te rge c r c' unde 7 U. C.j23 6t t Dodd- a
nd o xpa he i ton
t vea onta t' r S.
1
2 o he
Frnk

2 7 U .S. j23pr i ,n pe tne pa t
6
C.
ovdes i ri nt r :

( M ar n ac
a) gi count orc r sand Iver acc sorc r t
s ontact
e age ount
ont acs
prohi t exceptas authori
bi ed
zed

Exc p a a to ie u d rs bscin( )o t ss cin, pes ns lofe t
e t s uh rz d n e u e to b f hi e to no ro hal fr o
e e i o,e e i o,o c i t e c i of a tans c i f t de i r
nt r nt nt r nt r onfnn he xe uton , ny r a ton or he lve y
ofa c m odiy unde a s a r z d c t a c m onl known t t t a as
ny om
t
r t nda di e on r ct om
y
o he r de
a m a gi ac ount m a gi c r c ,l ve age a ount o l ve a con r c ,or
r n c
, r n ont a t e r
cc
, r e r ge t a t
unde a c r c ,a coun ,a r ng e ,s he e,orde ce t tt Com m i s on
r ny ont a t c
t r a em nt c m
vi ha he
si
de e m i s s r s t s e f ton orf tons a s h a s anda di d c r c ,
t r ne e ve he am unc i
unc i
s uc
t r ze ont a t
ori m ar t orm a ge i s t ntaly t s m e m a r a s a
s ke ed
na d n ubs a i l he a
nne s uch
sa r z c r t
t nda di ed ontac .

7U. C.j23( . t Elve h Cic te ai d,
S.
a)As he e nt rui xpl ne underCFTC rgultons
e ai ,
( lvergeco rc hassa r z tr a c tonsa i çfrt l
A1 e a nta t tnda died ems nd ondii nd s ûo he ongtr (e yeasorl )purha e... s l ' alve a c
em tn r onger c s or ae'of e r ge ommodiybya
t
lv rg c so r 1 C. R. 314 w) A lv r g ta s cin b e tnso i a
e e a e u t me . 7 F. j .( . e e a e r n a to , y x e in,s
de lt e ngealvergec r t 1 C. R.j314( .M a tna J ge i it
a o xcha
e a ontac. 7 F.
. x) ri nd a r nss
t tr le r a ount'orçe r c r t'a us di 7U. C.j23a
he e ms ç veage cc ' i veage ontac, s e n S.
l
l
'
nd
d fn di 1 C. R. 314 w) a df o ta t . . ne e it . . nalv r g d
eie n 7 F. j .( , n k n rcs . e tr d n o . o e ea e
c
ba i,' us di 7U. C.j2,ha t s memea ngandd ai l
ss'as e n
S.
ve he a
ni
ur tona
. . .

r r ent
equiem .

H unt r W i e a * 5.The ef e M r M ari a M r J erwe e i or e ti a g ng t
e s , t 4r or , . tn nd . ag
r nc r c n r ui hat
snc H unt r W i e' ta a tonsm a ur i f ye s t ta ac i do no c tt e
i e
e
s s r ns c i
t e n our ar , he r ns tons
t onsiut

tlvea 'rns to orta a tonstna donasmia ba i,a t tj2( ( (
ûe rged'ta acins rns ci i nce
i lr ss nd ha c)2)D)
i i pplc bl t Hunt rW i e' o r tons I a 5.
s na i a e o
e
s s pe a i . d. t
35

a ndme i j2()2)D) çtnuous a b t' I f Mr M atn a M r J ers s se
me
nt n c( ( , te
, t es.' d.I . ri nd . ag ' uggetd

a ay i a ple ,te j2 woud rn e j2 c( )D)me nn ls ;S cin 2 c ()D)wo l
n l ss p id h n 3
l e d r ()2 (
a ige s e to ()2 (
ud
t y gi jt Commisona hort overwha j23ale dy prhi t. 1 Lasl e nt h
i
onl veg he
si ut iy
t
ra o bis' d. ty, ve houg
'
if
t ound t saut y t xt una bi
he t t or e
m guous and r viwi age y i e r t ton a l sa i
e e ng
nc nt m e a i nd egiltve

hit y wa unne say,t Elve h Cic tnot t tboh s c C moniel 'wih a
sor s
ce sr he e nt rui ed ha t oures t
har z dl' t nd

t O lme te l'r s e t l,t fn ig .7
û mPC n ld , e p ci y is i dn sz
C
'
ve
As t t û cualdelvey' e e i 7 U. C.j2( ( ( (i(I)a ,t El nt
o he i t
a
i r ' xc pton,
S.
c)2)D)i)1l(a) he eve h
Cic ta i a i d t or na y m e ni oft tr t hol t tû i r mus be ac ual'
r ui gan pple he di r
a ng he e m o d ha t ve y
del
t
t .
'

Huntr Wie a * (
e s , t 9 emphassi orgna) The Elvenh Cicui e ane lf e s que of
i n ii l.
e t r t xpli d, l' e nce
-h
e nt c em pl ed by M a tn a J ge - i w hi h t e ec r c t a f r of doc e s
ve s ont
at
ri nd a r n
c he l toni r ns e
um nt

i c tng contolorpos es i efecuat dei r wihoutphysc tans e oft c
ndi a i
r
s son f t es lve y t
ial r f r he omm odiy
t
-

i b a dei ton consr tve,rt rt n a t l'I ( tngBl sLaw Di i y 494
s y ny fnii
tuci ahe ha cua. d. cii ack'
'
ctonar

( h e 2009)( fni çc tu tvedei r 'a ûgl ac t ta
9t d.
dei ng ûonsr ci lvey' s tan t ha mount t ata froftteby
s o rnse il
opeai of1w whe acualta fri i a tc ori sbl ') The Elve h Cic tas
rton a
n t rnse s mprcial mposi e' .
l
e nt r ui lo
f
ound t to he s ur e ofa yss i udi t CFTC' own i e pr t ton,we e ur ce s y
ha t r o c s nal i, ncl ng he
S
nt r e ai
r me s ar
t ca e ç t ldei r una guousy e l
û us acua lve y' mbi
be
l xcudes t cmsr c i de i r M a tn and J ger
he c tu tve lve y ri
a
a gue oc ur ed.' I . a *1 .2
r
c r 'd t 0 8

2 Afe de nov r viw , t El nt Cic ta fr e t l alc us on i t sCour '
7 tr
o e e he eve h r ui f im d he eg oncl i n hi
ts

F br ay2 , 01 Or e o Plitf sMoi nf rP ei n r lj ncinta j2 c( )D)
e u r 6 2 3 d r n an if
to o r l ay nu to h t ()2 (
mi
c r t t a ac i i di put i t sm a t r H u e W i e a *6.
ove s he r ns tons n s e n hi te . nt r s , t

2 TheE1 nt Cic tf t tig as onghi Cour')s undfcua fndi a a trde
8
eve h rui ound ha ûbl ed t s ts o a t l i ng nd fe
nov r e ,' hi Cour ' Fe u r 26, 3 O r ron Pl i tf sM o i f Pr lm i r
o evi w ' t s
t s br a y
201
de
a n if
t on or e i na y

Ij n to s$e a c n lso t thee c pin ddn t p ywa n ter ne u . Hu e Wie
nu cin' 1 g l o cu in ha t x e to i o a pl s o ro o s' ntr s ,
l
'
a *7.TheElve h Cic ta s f
t
e nt r ui lo ound t tmy tndi t tt e or ea e oblgai t delve
ha
i ng ha he nf c bl i ton o i r

e e to , e 7U. C. 2()2 ( (i(l)b ) d dno a p ywa n ta el ro lw sn el
xc pi n s e S. j c( )D)i Il( b , i t p l s o n r' f a ic
)
o
f
ound t tHun e W iedi no own t me al.
ha
tr s d t
he t s Hunt Wie,a *8.
er s t

For t s m e r s ,l fnd t t M r M a tn a M r J ge ' c ai ed r la on o he
he a
ea ons i ha
. r i nd . a r s l m
e i nce
t r
s ce t de e m i w he he H unt W i e' s he e,w hi h i ve m i r pr e a i a
our s o t r ne
t r
er s s c m
c nvol d s e es nt tons nd

dec ptve om isons vi aed t Ac i unr as bl The pli r di of t sa ut
e i
s i , ol t he t s
e ona e.
an ea ng
he tt e

d mo srtst a t CF h sj rs it n o e Hu trW ie a dt a Hu trW iec mmi e
e n tae h t he TC a u idci v r ne s n h t n e s o t d
o
t
faud t tti r d CFTC enf r e e pr e ngs
r
ha rgge e
o c m nt oce di .
Hunt W i e' Couns
er s s
el

M r M a tn a M r J ge c am t t Hunt r W ie' lgalc
. ri nd . a r l i ha
e
s s e
ouns advie t
el
s d hem t t
ha
Hunt rW ie owne a pos es e me a sa t tt ta aci i e ged i di no vi at
e
s
d nd s s d t l nd ha he r ns tons t nga
n d t ol e
t Ac .l lg of a1 t e de e t t c r r t r pur td r inc on c
he t n i ht
1 he vi nc o he onta y, hei
pore ela e
ouns l i
e s
di i nuous.
s nge

I t we la ng up t J y 1 2011 t da et Dodd- ank a e e st t Ac
n he eks e di
o ul 6,
,he t he
Fr
m ndm nt o he t
bec m e e or e bl M r J e a M r M ari r eve c e r wa ni fom Hunt W ie
a
nf c a e, . ag r nd .
tn ec i d l a
r ngs r
er s
couns l M r Gi nnone t t Hunt r W ie' o r tons we e ilgalunde Dodd- a M r
e
. ova
ha
e
s s pe a i
r le
r
Fr nk. .
G i m one i no unc t n t r s t d M r J ge a M r M a tn t s t down Hunt r W i e
oval
,n
erai e m , ol
. a r nd . ri o hu
e
s

untli c id wih t ActSe E- i fom Gi nnonet J era M a tn(une24,2011
i t omple t he . e mal r
ova
o ag nd ri J
)
(
CFTC Ex.1 a 3) Afe l r ngt tM r M a tn a M r J rhadnotacedupont plns
87 t . tr eani ha . ri nd . age
t
he a
he ha r c m e
d e om nded t ke p H unt r W i e f o vi a i t l w , he w a ne t m t t t y
o e
e
s r m ol tng he a
r d he ha he

co d f c c i i la lt i t c i d Hunt rW ie' ope a i . e E- alfom M a tn
ul a e rm nal ibiiy f hey ontnue
e s s r tons Se m i r
ri

t Gi nnone (u1 1 2011 (
o ova
J y 2,
) CFTC Ex.1 a 4) Mr M a tn a Mr J ri e i l
69 t . . ri nd . age ntntonaly
i e M r Gi nnone' a c and t a t d r kl sy i co i ng t de r ud t r t l
gnor d . ova
s dvi e,
hey c e ec es l n ntnui o fa he eai
c t e sa t rD odd- a be m e e f c i
us om r f e
Fr nk ca
f e tve.
H unt W i e' o he couns w a ne M r J ge a M r M a tn t t H unt r W ie'
er s s t r
el r d
. a r nd
. r i ha
e
s s
doc e s r ga di Hunt r W i e owni a sor ng m e al w e e f s . See Ta
um nt e r ng
e
s
ng nd t i
t s r al e
ped Cal
l

Bewe n Gr s andGa no (
t e osman
udi Nov.21 2011a 11: a. )(
,
t 45 m. CFTC Ex.227) M r Gr s n
. . os ma
expl ne t H u e W i e t di f e e be wee t a r ng e i ha wih t m et lSu i s
ai d o nt r s he fer nc t n he r a em nt t d t he
a ppler

(. ,mar n tadi a ount me tt ofs HuntrW ie' oblgai t t rti c t s
ie. gi r ng cc s an o fet e s s i tons o he eal usomer)
a posesi physc meas E- i fom Gr s n t Ma tn (u1 24,2011 (
nd s sng
ial tl. mal r
osma o ri J y
) CFTC Ex.
238) M r Caey que tone M r M a tn,i pa tc a ,aboutwhy he beived HuntrW iehad
. . r
si d . ri n riulr
le
e s
sor me al wih e ch oft Supple st ven wha s e e t be t book e r oblga i as
t ed t s t a
he
ir û
gi
t e m d o he
nty i tons

oppos dt s t ng( jc dhol i ( s han 'CaeyDe a 1 11 l
e o omehi he oul d n hij d.' r
po. t 42: - 7.
Eve Hunt W ie' c ns M r Car y,whom M r J ge a M r M ari cli e t r y
n
er s s ou el . e
. a r nd . tn am d o el
on f t r u rt ndi ofDodd- n t siid t tM r M a tn' bei ft tHunt W ie
or hei nde sa ng
Fr nk, e tfe ha
. ri s le ha
er s
ow ne m e a s w a wr
d t l s ong.H a he s m pl s
d
i y poke t t m e a s Supple s M r C a e s a ed,M r
n o he t l
ir , . r y t t
.

M a tn woul ha had t a e wha e r
ri
d ve
o cc pt t ve yone ele ale dy kne t b tue:no m eal e se
s ra
w o er
t s xitd.
Se Ca ey D e 62: 9- The Suppler 'r pr ent tves c i d t obvi under t ndi
e r
po. 1 24.
i s e es a i
onfnne he
ous
s a ng

t tHuntr W ie wa ta ng i ma gi a ount .Owne s p a dei r di notocc untl
ha
e
s
s r di n r n cc s
r hi nd lve y d
ur i
HuntrW ie pa d i f lf t me a s The e se e ofHunt W ie' ta ng ac ount ,wih
e
s i n ul or he t l .
xitnc
er s s r di
c s t
ma gi c l,c e s M r M a tn a M r J ge ' urr s bl cai t ti ha t i nt y
r n als ount r
. ri nd . a r s lea ona e l m ha t d he nve or
on ha t de i rm eal t r t i c t e s
nd o lve t s o e a l usom r .
M r Car y wr e a l galm e andu t t he s t M r J r a M r M a tn on
. e
ot
e
mor m ha
ent o . age nd . ri

Augus 11 2011 i r ar t Dodd- a e or eme .See Car y De 1 22- 47: 7.M r
t ,
n eg ds o
Fr nk nf c nt
e
po. 46: 1 1
.
Car y pr mied hi a ysson c ra n matra as umptonst twer i r tand t tgr aty
e e s
s nal i
e ti
eil s
i ha
e ncorec
ha e l
i l nc d hi ûndi t tt Ac di no a y t Hunt rW ie. exa e, he me or ndum
ntue e s
ng ha he t d t ppl o
e s For mpl t
m a
t ntc pa es' w ihou i s i i t ta1 oft de l r H u e W ie dea tw ih w e e S i bl
s i i t ,' t t nve tgatng, ha 1 he a e s nt r s
a
l t
r ç gi e
el
c r t pa tc pa s ' a t r or , not r t i c t e s 1 a 1 1 15 22. He was not
ontac r i i nt ' nd, he ef e
e a l us om r . d. t 49: 7- 0:

a r t tonl ahe Hunt rW ier ceved t r t i c t r f
wa e ha
y r
e s e i he e a l usome s' undsdi HuntrW ie ge a e
d
e
s ner t

38

an a ountf t r t i c t e s a s ntbac t de l r 'c oft f nds 1 a 151: 13.
cc
or he e al usom r nd e
k he a e s ut he u . d. t
3-

Furhe,Mr Ca e a s dt tl- e W ie' c rcsE e no e c e onal r dor
t r . ry sume ha il r s s onta t wer) t xe utd
lunt
eveage
m a gi bass' f a 15 1 1 1 Si e Huntr W ie di i e a t N t r t i c t a r
r ned i . #. t 3: 9- 55: 4. nc
'
e
s d nt r c vih e a l uson e s
t oug t pora webst and t de e s de nde on Huntr W ie f fnancal a d a
hr h he tl
ie
he alr pe d
e
s or i i i nd
s vi es H unt rW i e knew M r Ca e sas um ptons we e i c at .
er c ,
e
s
. r y' s
i
r nac ur e

M r M a tn a M r J erc t t l ala ys sofDodd- a pr pa e by M r Gr s a
. ri nd . ag ie o eg nal i
Fr nk e r d
.
os m n
on J 23,2011 t s
une
o uppor is l galr la e c ai .9E- ai f om G r s a t J ge a M a tn
tt e
e i nc l m 2 m l r
os m n o a r nd ri

(u e 23 2 1 ( n e W ie Ex.5 ) Mr Gr sma rp e e td Hu trW ie Lly s a d
J n , 01 ) Hu tr s
4 . . o s n e r s ne n e s , o d , n
i vi
ndi dualde l r ,a w e la M r J e a M r M a tn, i vi ly,a hi tng r i sa e a l
a e s s l s . ag r nd . r i ndi dual nd s i e prnt r l

ove t ss he Bot hi f cualsaeme sa lgalopi ons lc c edi lt .3 M or
r hi c me. h s a t t t nt nd e
ni a k r biiy 0
eover je
,a
e iil not d i a e m alt tt pli mea ng oft Ad wast prma y r our e. 1 a 1.
xplcty e n n - i ha he a n
ni
he
he i r es c d. t

Consde i t f d t tt Elve h Cic t f und t sa ut r lng ge unn guous i i
i rng he a ha he e nt r ui o
he tt o y a ua
mbi
, t s
unr s bl f M r M a tn a M r J ge t c am t ha beleve M r G r s a s s r ne
ea ona e or . ri nd . a r o l i o ve i d . os m n' t ai d
i e pr t ton r t rt t pl i lngua oft Ac .
nt r e a i ahe han he an a
ge he t
Eve a s i M r J ger a M r M a tn bele d M r G r s a s J
n s um ng
. a
nd
. ri
i ve
. os m n' une 23, 2011

e auain t a te CFTC h d n j rs ito o e Hu tr W ie u d r Do d- rn Mr
v l to h t h
a o u idcin v r n e s n e d F a k, .
Gr s a s a yssa m on h lt rcal i o quesi t rdam sofgood f ih r la . W hie
os m n' nal i
t a e ls nt
ton hei i
at e ince
l

e tng t Tr ns e ofPr ci a l ti M e a notc whih we e mea t r pl c t
dii he a f r
e ous nd ndusral t l i e, c
r
nt o e a e he
Tr nserof Commodiy notc Hunt r W ie s t t r t lc t e s M r Gr s a e a ned
a f
t
ie
e
s en o eai usom r , . os m n xpl i
t tt f r t a oute ty wha i bei he d,ho a f w hom . l now her says t H W
ha he o m t ys
l
xac l
t s ng l
w nd or
t
e
hat

a a ofHW ' cusome deae si (hought y ma be holi a physc lpr uc t ti
nd ny
s t r lr s t
he y ) dng ny
ia od t ha s
2 Bec us M r J ge a M r M a tn ç ie t s
9 a e . a r nd . ri a ld o how t tM r Gr s
ha . os man wa una ia et t siy
s va lbl o e tf
a ti l M r Gr s a sde ii w asnota il d a ti l
t r a , . os m n' poston
dm te t r a .
3 Forf t e dic son ofM r Gr s n' c r dit y a quesi bl conduc asHunt r
0
urh r s us i
.
os ma s onta c or nd
tona e
t
e
W i e' couns ,s e s pr not 24.
s s
el e u a e
39

r r d t m e toblga i t HW ' de e c t m e soruli a ey t r t lc t e .' E- ai
equie o e
i tons o
s alr uso r
tm t l he eai usom r ' m l

fom Gr s nt M a tn(ul 2 2011 (
r
osma o ri J y 4, ) CFTC Ex. ) M r Gr s n goe ont caiyt t
238 . . osma
s o lrf ha
Hun e W iewasta ng t of s tisoblgai 'i wasno i pos es i ofa m e a s 1 a 2.
tr s
r di o fe t i tons, t
t n s son
ny t l . d. t

Furhe mor M r Gr s n satd t tt Poston Re
t r e, . os ma t e ha he ii
conc la i sa e ntfom DDSC c d
iiton t t me r
oul
l t ntaly' bem il di t r t i c t e ssnc i s
é e il'
po
sea ng o e al usom r i e t uggessHunt rW ie hasphysca m e a s
t
e s
i l tl
a DDSC gi s as ur nce of t c
nd
ve s a s
he omm odiis' e senc wihout s eng t m . 1 M r
te xit e t
e i he
d. .
Gr s a knowi t tt r was t m ea a t e oft r i bow ,' a s Hunt rW ie
os m n,
ng ha he e
t
no t l t he nd he a n
' dvied
e
s

t ti t d be betr...t ( ovi lt thone te a to rt rt n s t r pa te '
ha t t
woul
te
o pr de ha
s xplnain ahe ha ome hid ris
a s a e t tt ac ountpa r wor de i tng a c
s ur nc ha he c
pe
k sgna i
omplt hedge balnc d ta ng poston
ee
a e r di
ii
exit . f Hunt rW ie r eved a e l ton ofwha Hunt rW ie' s heme r ly wa , even
ss' #.
'
e
s ec i
n vauai
t
e
s s c
eal s
fom M r Gr s a ye i c e t i ei.
r
. os m n, t t hos o gnor t

Hunt W ie' couns m a M r M a tn a M r J ge a r oft l lt is s t
er s s
el de . ri nd . a r wa e he egaiy s ue he
pr ci m eal tans tonsa lnguage i HuntrW ie' doc e spr s nt . They w e e on
e ous t s r aci
nd a
n
e
s s um nt e e ed
r

noi oft de e i ye t y d i d t rs i,lughed a ha ng l j ni c ls'a
tce he c pton, t he ecde o ik t a
bout vi s oi ng el, nd
ad
'
c i d t mil d a de i cusome s The e wa no m e a û tt e oft r nbow'
ontnue o sea nd ceve t r . r s
t l t he nd he ai
a
'
onl of s ti tans c i . Ra he t n r l upon t a e of c
y f e tng r a tons t r ha e y
he dvi e
ouns l M r J r a M r
e , . age nd
.
M a tn i ed i.
r i gnor t

On t oft c e rwam i a e ana i fom Hunt rW ie' c
op he l a
ngs nd xpl tons r
e s s ouns , M r.M a tn'
el
ri s
own saeme sc r dithi cl m t thea ualy beleve t tHunt rW ie pos es e m eal.
t t nt onta c s ai ha
ct l i d ha
e
s
s sd t s
l l e J 2011,t FOFR s r ed HuntrW iewih a s
n at une
he
ev
e
s t ubpoe f doc e st tr lt d t
na or um nt ha ea e o
is c i i l i si to of one of Hunt r W ie' de e s M i s A s e M a ge ent l
t rm na nve tgai n
e
s s alr ,
da
s t na m . n
e a ni t r que tt M r M a tn,M r Gr s
xpli ng he e s o . ri
. os man saed t tFOFR a ke f t l a i of
t t ha
s d or he oc ton

tealg d yso e meas E- ifo Gr sma t M a t (uy5 2 1 (
h le e l t rd t l. mal r m o s n o ri J 1 , 01 ) CFTC Ex 2 4a 1.
n
.3 t )

40

The s
ame da M r M a tn r ponde t M r Gr s a c ng M r Ca e sa i çlbe ive
y, . ri es
d o . os m n, opyi
. r y, t tng, t le
ourr s
e pons t t que t on ofw he e t m e ali s o e ne ds t be c e uly t
e o he s i
r he t s t r d e o
ar f l houghtout' 1
. d.
'

M r M a tn' he ia t r s
. ri s stncy o e pond bei sany cai t the a t ly be ived Hunt rW ie oris
le
l m ha
c ua l le
e
s
t
c t er a t l pos e s d a hi
us om s c ualy s s e nyt ng.

(i) TheCFTC' 1 5I emrttveLet
ii
S 98 nt eai ter
To ar t tt y be ived t tt y hel ttet t m eal be us oft CFTC' 1
gue ha he le
ha he
d il o he t s ca e he
S 985
I e pr t tve Le t ri hi hl unr s bl The CFTC i s d t 1
nt r e a i
te s g y ea ona e.
s ue he 985 I e r t tve Le t rafe
nt m e a i
te t r

an ul m e ba r quese lgalclrfc ton ofpotntalla lt unde t Ac r ga di is
ma d nk e t d e
ai ai
e i ibiiy
r he t e r ng t
pr pos d ta a ton. CFTC e aned,
o e r ns c i The
xpli
A ba tans ton i vi t pur has a s l of pr c ous m e al t be
nk r ac i nvol ng he
c e nd a e
ei
ts o
s tl d i t busnes da wih t bank r cevi pa e i f lfom a de l r
e te n wo i s ys t he
e i ng ym nt n ul r
ae
who woul r s l t m e ast isown r t i c t rwih dieci f t ba
d e e l he t l o t
ea l usome t r ton or he nk
t ta f r owne s p a tte t t m e al t t pur has ' nam e,woul notbe
o r ns e
r hi nd il o he t s o he c er s
d

alvergeconrc wihi t me ni ofCo si Re j314( .
e a
ta t t n he a ng
mmison g. . w)
I a 1 The CFTC ' 1 l e pr t tve Le t r was i s d t e y-i yea s be or D odd- a
d. t .
S 985 nt r e a i
te
s ue w nt tve r f e
Fr nk

wa pas e I c d notpos i y i e pr tt i
s s d. t oul
sbl ntr e he mpac Dodd- a woul ha on t l ga iy of
t
Fr nk
d ve he e lt
H un e W i e' s m e.
t r s s che
I t 1 I er e a i Le t r t CFTC f
n he 985 nt pr t tve te , he
ound t tt t a a ton w asnota l r ed
ha he r ns c i
eve ag

ta acin unde Reg ai j314( .As t Elve h Cic t f
rns to
r ulton
. w)
he e nt r ui ound i Huntr Wi ,a
n
e se

lv rg d ta s cin u d r Re u ai n j314( a d u d r j2 c ( )D)i(1 we e n t te
e e a e r n a to n e g lto
. w) n n e ()2 ( ()l) r o h
s me Do d- al b o d n d te CFTC' j rs ito t icu fna c d c mmo i
a . d Frr r a e e h
k
S u idcin o n lde i n e o dt
y
ta a tons wih c umes Se
rnsci
t ons r. e

U. C. j2()2)D)i(I. Unde t Dodd- a
S.
c ( ( ()l)
r he
Frnk

a endm e s i t r t i consl e w as e erng i o a fna d t a a ton,t t CFTC had
m
nt , f he e a l
tm r
nt i nt i nce r ns c i hen he

41

j rs ito o r te ta s cin' t ee wee n tme r q rme t a u d r Regul i n
u idcin ve h r n a to , h r r o i e uie n s s n e
ato
j314( .1
. w)3
(v) TheM atrAgre nt
i
se e me
M r J e and M r M a tn f ie t s w how i w as r as bl t r l on t M as e
. ag r
. r i a l d o ho
t
e ona e o e y
he
tr

Agr men t dee m i t tt i c ua dei r 'exc pton a i t Hunt W ie' s heme.
ee t o tr ne ha he ç t l lve y' e i ppled o
a
er s s c
The M a t r A gr e e w as e t bls d s t t pa te s ki t en e pr i
se
e m nt
s a ihe o ha
r i s ee ng o t r ec ous m e a
tl

ta a tons c d us a unior t mplt I pr des no dic so of t lgalt of t
r ns c i
oul e
f m e ae. t ovi
s us i n
he e iy
he
ta a tons i t Unie St t a doe notde alho g r m e r gul t s woul e o ce
r ns c i n he
td aes nd
s
t i w ove n nt e aor
d nf r

t i lws M o e v r t e 1 9 M a trAge me te pli n ih rt eCFTC' j rs ito n r
her a . ro e , h 9 4 se r e n x ans ete h
S u id cin o
t l galt ofHunt r W i e' c
he e iy
e
s s onduc ,i lghtoft D odd- a a e
t n i
he
Fr nk m ndm e s The e or t r y
nt .
r f e, o el
on a prva e ag e e be w e n t o pa tes t de e m i w he he D odd- a a i t t i
i t r em nt t e w
r i o t r ne
t r
Fr nk pples o he r

s he ei hi yunr a ona e.
c m s ghl
e s bl

()
b

P e iu Ale aino Fru a an t r M a t
r vo s lg to f a d g is M . ri
n

Tha M r M ari ha pr vi de i w ih t FTC, a f de a r gul t y age
t .
tn d e ous alngs t he
e r l e a or
ncy,
r a di fa a a pr c o m e al tr f t r s
eg r ng r ud t
e i us t s s m urhe uppors t i c ton t t he w as
t he ndi a i
ha
knowl a e oft t sofi or a i a conduc t two d co tt ecomm odiisfa .
edge bl
he ype
nf m ton nd
t ha ul nsiut
te r ud
The FTC a lge t tUni e ,whe e M r M a tn wor a a e c i , defa d is r t i
le d ha
m t
r
. ri
ked s n xe utve
r ude t e a l

c t e s by tf le y r pr e i diec l orby i ia i t tan i t e i pr i
usom r
Ga s l e es ntng, r ty
mplc ton, ha
nvesm nt n ecous
m eal orc r i tna d by def nda s i 1 i rs 'a tha i i hi y lke y t ta
ts
urences i nce
e nt s ow n ik' nd ç t t s ghl i l ha n
t
3 si pl r di t 1 l er e a i Le t rdi pr
1 m y ea ng he 985 nt pr t tve te s ovesM r M a tn a M r J ge ' good f t
.
ri nd . a r s
aih

rla c cam. nteLetr t CFTC f u dta te eta s cinsween ts b e tt
ein e li l h te,he
o n h t h s rn a to
r o u jc o

r gul ton by t CFTC asûtr ns tonsi vi c r c sofs eofa c modiy f f t e
e ai
he
l a aci nvol ng onta t
t
al
om
t or u ur

delvey'ast ttnn i us i Se ton2()1( oft Ac.' 1 l e eai Let a
ir
ha e s ed n ci a( )A) he t'See 985 ntmrttve ter t
3.
Howe r unde t Ac , heCFTC m a r gul t t etans c i a l ft agr e e ,
ve ,
r he t t
y e ae hes r a tons s t he e m nt
i
c r c ,o ta a i wasa c r tofs l ofa co m odiy f f ur de i r .' 7 U . C.
ont a t r r ns cton
ontac
ae
m
t or ut e lve y '
S.

j2()2)D)ii.Thepli lnguageoft saut make ce t tt 1 I e eai
c( ( (i)
an a
he tt e
s lar ha he 985 ntmr ttve
Let rstndi woul nota y.
te ' i ngs
d
ppl
42

i t w il e n a hi h pr i on a i ve t e i pr ci m e al or c r nc es tna d by
nvesor l ar
g oft
n n s m nt n e ous t s
ur e i i nce

de enda s wihi a f w mont oft tm e oft i sm e i m a ' Compl CFTC Ex.1
f nt t n e
hs he i
he nve t nt s de.
'
.
58,

FFC v.Uni t No.92me,
5759,7!D- ( Ca. Se .23,1 .The FTC' a to agans M r
E CD l, pt
992)
S cin i t .

M a t c ncu e wihaCo s n Or e ta p nua e tye j ie h m fo mir p e e tn a d
ri o ld d t
n
n e t d r h t e n n l n on d i r m se rs n ig n
f lng t dicos ma e i lf t peri t acusome ' de son t e e i o a c modii s
aii o s l e t ra ac s tnent o
t r s cii o nt r nt ny om
te
ta a i See Cons Or r as t De e nt E.Keih Owe ,Ed M ari and Ed M ye s
r ns cton.
ent de
o f nda s
t
ns
tn,
r,

CFTC Ex.1 Fe r Tr Commisonv.Uni tCr tCor , 92- ( Ca.De
59, de al ade
si
me edi p.No. 5759 CD l, c.
20,1 .TheCons n Or ralopr ntd Mr M a tn fom hepi ot r mirpr s nta
994)
e t de s eve e . ri r
l ng hes se e e nd
om i m a e i f c st c t e s a wel. d.
t t ral a t o us om r s l 1

Des t t s Cons Or r ofwhih M r J ge wasa r ,M r M a tn e er d i o t
pie hi
ent de ,
c
.a r
wa e
. ri nt e nt he
Hun e W ie s he et de r ud rt i c t r . r M ari a M r J ge at mpt d t r
t r s c m o f a ea l usome s M . tn nd . a r te e o emove

HuntrW iefom die i e f cewih r a lc t e st i ul et m s ve fom vi a i M r
e s r
r ct nt ra
t eti usom r o ns at he el s r
oltng .
M a tn' Cons tOr ra t Ac .
ri s
en de nd he t
Ge r lDi cl ur A g e m e s
ne a s os e r e nt

Durng t vitm s t si ony a til M r J e a M r M a tn poi e outt tt r t i
i he c i ' e tm
t ra , . ag r nd . ri nt d
ha he e al
c t e s sg d doc e st tcont ne a rs dicl ur whi h i t n woul i cae lck
usom r i ne
um nt ha
ai d ik s os e, c n ur
d ndi t a
ofs i nt r The El ve h Cic thashe d,howe r t tage a dicos ei no enoug when
ce e.
e nt r ui
l
ve ,ha
ner l s l ur s t
h

t defnda ' ovealmesa c ttt fa R. Fiz r d,31 F. a 1 31 (ii
he e nts rl
s ge onsiues rud. J tgeal 0 3d t 329- ctng

CFFC v Sdoi 1 8F.d 1 3 1 3 ( 1 Ci.1 9 )(1 esro sy d u twheh rb iep ae
. i t, 7 3 1 2, 1 6 1 1 r 9 9 t e iu l o b
W
te olr lt
rs dicos elnguag c de rrnde a eale maeilmirpr e ai i tra.l.A
ik s l ur a
e oul ve e r n rir tra se esntton mmaeil' )
'
r t l c t r ca
eai usome nnotbe a ur t l i or e of t ta a ton whe Hunt r W ie' ove al
cc a ey nf m d
he r ns c i
n
e
s s r l
mes age wa one of lr pr i ga ns a gua a e m ea s The m ir e e a i and
s
s
a ge oft i nd
r nted tl .
sepr s nttons

43

om isonsby Hunt rW ie a t Deae De e nt we e t pr l tt ove c e a ge a
si
e
s nd he
lr f nda s r oo evaen o r om
ner l
rs dicl ur a a a e ntt pa f s
ik s os e nd n gr eme o y ee .
For a1t a o eme i
l he f r ntoned r s ,I fnd t tM r J r a M r M a tn kne Hunt r
ea ons i ha
. age nd . ri
w
e
W ie' omi sons a mir pr e a i r r ng t diputd ta aci i t s m a tr
s s
si
nd se es nttons ega di he s e r ns tons n hi
te
pr e e a dange of m i l a ng r t i c t m e s The e or t CFTC ha m e is bur n i
es nt d
r
s e di e a l us o r . r f e, he
s tt
de n

pr ng t s int relm e unde Seci n 4b oft Ac .
ovi he ce e e nt
r to
he t

(
3)

Mat i iy
eralt

The ls e e
a t l mentofa fa c am i whe he t m ir pr s ntto saeme ,oromis o
r ud l i s t r he s e e e ai n, t t nt
sin
w asm a e i . d r e e a i orom i s on i l a e i l i a r s bl i t w oul c i r
t ral 1A epr s nt ton
s i s m t r a ' f ea ona e nves or
d ons de

ii
t mpora i de i ng whehe t m a a i t nt' R. Fiz r d,31 F. a 1 29
tnt n c di
t r o ke n nvesme .' J tge al
0 3d t 328-

(iig A l td Ut Ciie s o Uth v Untd Sats 4 6 U. 1 ,1 3 5 ( 9 2 ;R& W
ctn y i e e t n f a . ie t e , 0 S. 28 5 -4 1 7 )
a
z
Te c Se v . Lt v.CFFC,205 F. 1 1 (t Ci.2000:.M il di i o mai
chnial r s, d.
3d 65, 69 5h r
sea ng nfr ton
r r ng t s f t oft i s m e w oul be dee ed m a e i .See eg. Cl yt Brok r ge
ega di he a e y
he nve t nt
d
m
t ral , . , a on
ea

Co v CFF 7 4F.d 5 3 5 0 1( 1h Ci.1 6 (ters ihee ti go d t ft r s
. . C, 9 2 7 , 8 -8 1 t r 98 ) lh ik n rn n c mmo iy uu e )
l
tadi i amaera fc'.l R. Fiz r d,t Elve h Cic tf
r ng s
t il a t' n J tge al he e nt rui ound t tf lngt i or
)
ha aii o nf m
po e i cus o e s t t ne r y a l of a fr ' r t l c t er ha l t m one w a m a eral
t ntal t m r ha a l l
im s e ai us om s d os
y s t i
be us a r as bl i t woul w a t kno s h i or a i n be or i tng.31 F.
ca e e ona e nves or
d nt o
w uc nf m to
f e nves i
0 3d
at1332.

Hunt rW ie m a num e ous mir pr s t tons a de e i omi so i c
e
s
de
r
se e en a i
nd c ptve
s i ns n onnec i
ton
wih t s e ofpr c ousm eal.A potnta r t lc t
t he al
ei
ts
e il eai usomerwoul fnd i t be a ma e i f c
d i to
t ral a t
t t al os a l of Hunt r W i e' c t e s l t m one I f l t di c os i is ta ni
ha m t l
e
s s usom r os
y. t aied o s l e n t r i ng
m a l a t doc en s i s nt t r t i c t er t r s i r nt i t pr c o m e a
nua s nd he
um t t e o e a l us om s he ik nhe e n he e i us t l

44

i sm e si o whih i kne r t i c t r we e e t rng.Ast sis d t by s ve a Hunt r
nve t nt nt
c t w e a l usome s r n e i
e tte o
e rl
e
W i e vi tm s t si or a i w a undoub e y m a e i .
s c i , hi nf m ton s
t dl
t ral

Hunt r W ie knowi y mir pr e e t t of a r nge e i had m a wih t
e
s
ngl se es ntd he ype
ra m nt t
de t he
me a sSupple s Eve t
tl
ir . n hough t we ei or e by Hun e W ie' c
hey r nf m d
t r s s ouns a t y c imed
el nd he onfr
i e- a lco munia i t tno m ealexit d on Huntr W ie' be f or on a
n m i m
c tons ha
t
se
e
s s hal,
nyone e s s
l e'
be l f rt tm at r M r M a tn a M r J ge s ug t dec i r t i c t r by wo di
haf o ha te , . ri nd . a r o ht o eve e al usome s
r ng
t i doe e s i s h a w a t m a i s e lke H unt r W i e ha m e a s Hunt W i
he r
um nt n uc
y o ke t e m i
e
s d tl.
er se

co i
ntnued t s nd o Tr de Confr i ns a Poston Re oncii ton sa e e s satng t t
o e ut a
mato nd
ii
c lai tt m nt t i ha
r t i c t er ow ne m e a s
e a l us om s
d t l.

HuntrW i e de c i is o f etng ma g n a c sasowni a de i rng m ealon
e
s s rbed t fs ti
r i c ount
ng nd lve i
t
is cle s behaf M r M a tn a M r J ge we e a a e t s des rpton w a f le.Re a l
t int '
l. . ri nd . a r r w r hi
ci i
s as
ti
c t er t
us om s houg t y w e e pur ha i m e a s.The w e e t d t y ow ne t m e a a t t
ht he
r
c s ng t l
y r ol he
d he t l nd ha ,
bec us s or w a m or e t c ent t y pa d a s or ge f e t have t de e s a Hunt r W i e
a e t age s
e fi i , he i t a e o
he al r nd
e
s

kee t i me a s s f Undoubtdl knowi t tt y we e no buyi ma e il woul ha
p her t l a e.
e y,
ng ha he
r t
ng t ra s
d ve
bee c uc a i or ton t ha a t c i r Pe ha s e r t i c t e s woul ha
n r i l nf ma i o ve nd o onsde . r ps om e al usom r
d ve
e e e i o t s pr c o m e a s t a a tons w ih H unt r W i e ha t know n t t ue rs
nt r d nt hi e i us t l r ns c i
t
e
s d hey
he r i k

i ve and t t ofs he Hunt rW ieha s tup.
nvol d
he ype c me
e s d e
Howe r be a e Hunt rW iedi not
ve , c us
e s d
pr de t m wih m a e i i onna i t r a l c t e s e e ed i o t s i t e s
ovi he
t
t ral nf
ton, he eti usom r nt r nt he e nvesm nt
blndl wihouta ac ur t a c pl t pi t e oft t a a ton. s a r s t t ç a eralt '
i y, t
n c a e nd om e e c ur
he r ns c i A
e ul, he l t i iy'
m
r qui e e i m e .
e r m nt s t

Ac di l t CFTC ha me is bur n i pr ng Hunt r W ie i la e f fa
cor ng y, he
s tt
de n ovi
e
s s i bl or r ud
unde Se ton 41 oft A c .
r ci
7 he t

45

B. Se ton 6()1 o heAc andCommison Re ai 180. -Fr
ci c() ft
t
si
gulton 1 aud

Co tTh e alg st a Hu trW iec mmitdfa u d rSe to 6 c( )o t Ac
un re l e h t n e s o te rud n e cin () 1 f he t
e
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ulton 80.
c
s t ç wf or ny r on, r ty
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i lrte ewe n cin ()1 f h t n ci n 0 b f he c rte ha g t
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s urtes m a ke s a t de i tves m a ke s t Commi son wil be g de but not
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c r l by t s tnta body ofj cilprce nta yi t c r bl lnguag of
ontoled, he ubsa il
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e 0b 5
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4, ) A fnda s ibl or c ii
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p o e :ç 1 maeilmirp e e tto so maeil mila i g o sin ,()i c n e to
r v s ç ) tra se r s nain r tral se d n miso s 2 n o n ci n
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y
wih t pur s o sl ofs c iis ( ma wih s e e . SEC v Gobl 682 F.d 934,
t he cha e r ae e urte , 3) de t cintr'
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942- 43 ( 1h Ci. 2)(nena quotton o te . I wi1 a y t s m e l ga s a r f
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l
n s ue, he nt r e ai
he t ut
n enc ntte o dmi se t
i en ild t de e e e s l ngasi i r as bl Che r de e enc m a be a i d t a nc
s tte o f r nc o o
t s e ona e. v on f r e y
pple o ge y

itr rtto sarv da tlo g f r la j d c to ' . n r s g a tdt CFTC te
n ep eain rie t l u h o ma du iai n.) Co g e s rn e he
r
'
h
a t o iyt p o l aer lsa dr g lto sf rSe to 6 c( ) s e7U.. j9 1, n t
u h rt o r mu g t ue n e uain o ci n ()1, e
SC. ( ) a d o
e f reteS cin, e 7U. C. 9 4 ( . d risa t rt t CFTC is e Co sin
n o c h e to s e S. j ( )A) Un e t uho i he
y,
su d mmiso
S e i nce
e 0 5 ppe r e s bl
Re a i 18 1.
gul ton 0. The CFTC ' r la on SEC Rul 1 b- a a sr a ona e.
es 2 3d t
e r d o o ei nc
m ge , nd os a a i See
3 TheSEC i notr quie t pr ver la e,da a s a l sc us ton. Gobl 68 F. a
3
s

9 3(iain o t d .
4 ctto s mit )
e
46

vi ai ofSe ton 6()1 oft Ac .Acc di y,t CFTC mus pr t tHuntrW ie
oltons
ci c( ) he t or ngl he
t ove ha
e s
ma ()maera mir pr e ai ormaeral miladi o si ,( i c
de 1 t il se esnttons
t ily se ng misons 2) n onneci wih
ton t
t purhas ors eofscu iis ( ma wihs intr
he c e al e rte , 3) de t ce e .
Be a e I f und t t Hunt r W ie,t ough M r J r a M r M a tn,ma ma e i l
c us
o
ha
e
s hr
. age nd . ri
de t ra
m ir pr en a i and m ae i ly m iladi om isons wih s int r r ga di t rs of t
se es t tons
t ra l se ng
si
t ce e e r ng he ik
he

c modii ta a tons I nee onl dee m i whe he i di s i c
om
tes r ns c i ,
d y tr ne
t r t d o n onne ton wih t
ci
t he

purhas ors eofc
c e al ommodii .Agai lus Se ton 1 b)oft Sec ii Exc ngeAc a
tes
n, e ci 0(
he urtes ha
t nd

S Rul 1 b- a a g ie S ci n 1 ( )s tn c n cin wi 'rq ie n t h u d b
EC e 0 5 s ud . e to 0 b ' t o ne to t e u rme t t o l e
i
h'
s
consr d nottcmial a r titvel butte bl t efe t t (tlr dilpur es'
tue
e l c ly nd esrci y, l xi y o fcuae is eme a pos .
'

S v Za d o d,5 U. 81 ,81 ( 0 2 (n en lq oain o te ) Th ç u c a e'o
EC . n f r 35 S. 3 9 2 0 ) itr a u tto s mitd . e t r h s' f
p
s c iy m a i ve a c nge ofowne s p orapr iet pur s a s curt Se Gobl 682
e urt
y nvol
ha
rhi
om s o cha e e iy. e
e,
F. a 946.A de e
3d t
f ndan who ac e e pa e a t n f ie t de i r t s c iy t a
t
c pt d ym nt nd he a ld o lve he e urt o

c t ri la eunde Rul 1 5.d.cii Grppov Per z 357F. 1 1 24( 1h
usome s ibl
r e 0b- 1 ( tng i . az o,
3d 218, 223- 1 t

Ci.2 0 :.The Co r ma l o t whehe t e dee d n ' a to t ud . .i a t a
r 04
u t y o k o t r h fn a ts ci n t l . mp c n
wo
iv so ' d cso t p rh s as c rt 'I ; e as S v T x Gufs l rCo, F.d
n e t rs e iin o u c a e e u i ' d s e lo EC . e . l uphu .401 2
y.
8 3,8 2 ( d Ci.1 68 ( o dn t a a Rue 1 b- v oain e it E e v ra s rin ae
3 6 2 r 9 ) h l ig h t
l 0 5 i lto x ss i ne e se t s r
wh
o
ma ...n amanne ras bl cacultdt i l ncet i tngpublc).
de i
r e ona y l ae o ntue he nvesi
i'
l t co modii c e ,I mus de e m i whe he Huntr W ie' co uc was i
n he m
tes ontxt
t t r ne
t r
e
s s nd t
n

c n e to t t erti c tmes d cso t e trit t s be tta a to s Th CFTC h s
o n cin o h eal uso r' e iin o ne n o he u j c rns ci n . e
a
pr n t t Hunt r W ie m a coun l s mir pr e a i
ove ha
e
s
de
tes
se es nt tons a de ptve omisons i
nd ce i
si
n
conne ton wih t s l oft pr c ousme a s A sme i d a
ci
t he a e he e i
tl.
ntone bove Hun e W ie t ough M r
, t r s , hr
.
M a tn,M r J r is r e e a i ,a t doc nt i pr de t is de e s a s ntt
ri
. age , t epr s nttves nd he ume s t ovi d o t alr nd e o
r t lc t e s c im e f s l t ti ha physc me a s f is c t e s a f ie t
eai usom r , onfr d aley ha t d
ial t l or t usom r nd a ld o

dicl e Hunt rW ie s i ve ti t s m e Hun e W ie f ie t dicos t ti onl
s os
e
s ' nvol men n he che . t r s al d o s l e ha t y
ha i pe e res' r r ng is ive or Furher is doc nt a tai ng m aeral
d l r nti ' ega di t n nt y. t , t
pa
ume s nd r ni
t i
fa e l cl me s ce s i t s ta a tons e n whe Hunt r W i e' o a ountng
r udul nty ai d uc s n he e r ns c i , ve
n
e
s s wn cc i
s e t tove 90 of iscus om e sw e e l i m one . H un e W i e m i r pr s nt d t r t
how d ha
r %
t
t r r osng
y
t r s s e e e e he a e

of r t n and rs of t ta a to .Vitm s of Ht e W ie' s m e t sii d t t t s
eur
ik
he r ns c i ns c i
mt r s s che
e tfe ha hi

i or ton wo d ha i
nf ma i
ul ve niue e t i de son t pur has comm odii s Ther f e, t
nc d her cii o
c e
te .
e or he
CFTC' al to s ts yt ti co
S legai ns a if he ln nneci wih'r uie e .
ton t ' eq r m nt
Acc di y,t CFTC ha m e is bur n i p ovi Hunt r W ie i la e f fa
or ngl he
s tt
de n r ng
e
s s ibl or r ud

underSe ton6()1 oft Acta CommisonReg ai 1 1
ci c( ) he
nd
si
ulton 80..
C.Seci 13()o heAc -Ai ng andAbetng t Vi atonso heAc
ton a ft
t di
ti he ol i ft
t
Coun Thite oft Com pl n c am st tHuntrW ieai d a a ted t vi ai ns
t re n he
ait l i ha
e
s de nd be t he ol to
oft Ac t twe e c
he t ha r omm it d by ot rde e n s i t i t ntm at r The e o e,be us of
te
he f nda t n he nsa
te . r f r
ca e

HuntrW ie' a ons i i la eunde Se on 1 a oft Ad.7U. C.j13 a . defnda
e s s di ,t s ibl
r di 3() he
S.
c() A e nt

wil efu la l i i û n wigy a s cae (tef wi a u lwf lv nu e p rii ae i i
l b o nd ibe f t l o n l so its islj t n na u e tr , a t p ts n t
k
h
c
t brng i a ,a s e by (t)a tonst makei s e 'CFFC v TrniyFi Gr ,I .
o i t bout nd e ks is ci o
t ucc ed-'
. i t n. p. nc,

1 WL8
997
20970( D. a.Se .29,1 (nena quottonsomitd) r v' onot rgr
S. Fl pt
997) itr l ai
te , e d
he ounds

s b n m. C v Sioi 1 F.d 1 3 ( 1h Ci.1 9 ) s eas Bo c v Se h n,8 6 F.d
u o CFT . d t, 78 3 1 2 1 t r 9 9 ) e lo s o . r a t 3 2
y
2 ,27 (t Ci.1 8 )(i dn t a s cin 1 () l e i c i n llw 5çrequies not onl
71 9 7h r 9 7 fn ig h t e to 3a , i n rmi a a ç r
k

k o e g o tep icp lso j cieb tad sr t h l hm ati i' .
n wld e f h rn ia' b e tv u e ie o ep i t n t'
a )

48

()
1

Prmay Voa in
i r ilto

TheCour f
t oundpr vi l t tLl a t DeaerDe e nt vi aed Se ton 4(
e ousy ha oyds nd he l f nda s olt ci a)
t
e
s s nt r di y n he che
of t Ac .4 LI ds ac ed as Hunt r W i e' i e m e ar i t s m e. l ac e e t
he t3 oy
t c pt d he

i o m a i a f nds t De l r De e nt obt ne fom t r t i c t e s i t s
nf r ton nd u
he a e
f nda s ai d r
he e a l usom r n he e
c modii ta a tons a s r t m wih Hunt W ie. The Deae Def nda s heped
om
tes r ns c i
nd ha ed he
t
er s
lr
e nt l
f t r Hunt r W ie' s he e by maki m ae il mir pr s ntto a f lng t dic os
urhe
e
s s c m
ng tra se e e a i ns nd aii o s l e
m a e i li o m a i t t r t i c t e s w hom t y s lc t f r Hunt rW i e.
t r a nf r ton o he e a l us om r ,
he o i ied o
e
s

()
2

Ai ra dAb to 'Kn wld o h Prma y Vil in
de n etrs o e ge fte i r oat
o

M r M a tn a M r J e c a m t y wer i c r oft s m e.I a e- ai boa tng
. r i nd . ag r l i he
e n ha ge he che
n n m l si
a utH un e W i e' bus ne s M r J e e ai d t tH unt W i e d nves or a e notpl r i
bo
t r s s i s , . ag r xpl ne ha
er s t
i t s r
aye s n

t c i i t a t y own t c sno....Puta he wa otri sor a e notbe tng on t
he asno, nse d he
he a i
not r y, l nve t s r
ti
he

hore ;weo t r c ta k Eil Thepoi i t twec r t pr es,and sa t ma
ss
wn he a e r c sc .
nt s ha
ontol he oc s
tnd o ke
mone no mat wheet makess f. E- lfom J e t Pa r Pa (une 1,2008)
y
ter r he r t hit' mai r ag r o ndo a ng J
'

(
CFTC Ex.1 a 1.HuntrW ie masemi a f clttd t spr es ofc ai r t l
80 t )
e s
tr nded nd a iiae hi oc s he tng eai
cust er
om s.

M r J r a M r M a tn s e t ar t t be us t i Dea e Pur has & Sa e
. age nd . ri e m o gue ha , ca e he r
lr c e
l

Agr e e a t De l r Loan, Sec iy & St r ge Agr e e dicai e a ag y
e m nt nd he a e
urt
oa
e m nt s l m d n enc
r l i hi t a e notla e f a ssi t De lr Def nt i vi ai t Ac . The
eatons p, hey r
ibl or itng he ae
enda s n ol tng he t
y
cai t tt De e De e nt ha complt a onom y ove t i i e ac i wih t r t i
l m ha he alr f nda s d
e e ut
r her nt r tons t he e a l
c t e s The e de e pr entd atti le
usom r .
vi nc es e
ra xpos t i r ntf la e i t ra gum e s A n
es he nhe e al cis n hei r
nt .
a nc r a i hi doe no ha t e s t fnd Hunt r W i e la e f r s t m a ialy
ge y eltons p
s t ve o xit o i
e
s i bl o yse tc l
3 A snot pr ousy, on Fe ar 5,201 t Cour e er d a Cons ntOr ra t Ll .
4
ed evi l
bnz y
4, he
t nt e
e
de s o oyds

( 25 . Cou taloe eedaCons ntOr rast ( )Newbrdge( 289 a ( USCT
DE 4) The r s ntr
e de o 1
i DE ) nd 2)
( 288) TheCo ts l e erdea tj
DE
.
ur hal nt ful udgme agans CD Ho nsa Blc t unde
nt i t
pki nd a ksone
r
s pa a e O r r
e r t de .
49

der udi t i downsr a c t r o o t i f . I f c ,t D e l rD ef nda s ha t
fa ng her
te m usome s ut f her unds n a t he a e
e nt d o
i or HuntrW ie r pr e ai soft i r t i c t m e s i ta ta . Thi r uie e w as
nf m
e
s e es nt tve
her ea l uso r ' nii l r des s eq r m nt

s be a e a r t i cusome ' a co c d no be c e t d untlHunt rW ie s tt prc a
o c us e a l t rs c unt oul t
rae
i
e
s e he i es nd
r c ve t fmds.
e ei d he t

One oft çe t e 't tHuntrW ieoferd wast ti wo d ç ne ael alta
he ç aurs' ha
f
e s fe
ha t ul i r t ) l rdege
r a e c t r c r s nde e unde a ç hie La 'ara m e . . . . A s a a d bonus
elt d usome or e po nc s
r W t bel r nge nt
n dde
,

bot ghe De e a Cle Poral ae as brnded wih ghe De e ')c
h t ) alr nd int t s r lo a
t t
alrs ompa na a
ny me nd
l ' Hunt r W ie' De l r Pora Us r Gui , CFTC Ex.1 a 4.Thr h Hunt W ie'
ogo.
'
e
s s ae
tl e
de
26 t
oug
er s s
mai ena e oft po t we ie t ough whih Hun e W ie ge r t d a s ntdocume st
nt nc
he ral bst , hr
c
t r s ne a e nd e
nt o
t r t lc t
he eai usomer ,Hunt r W ie wasabl t l a c t r i o bei vi t r we e me a s
s
e
s
e o e d usome s nt le ng he e r
tl
sor on t i be l.Durng hi de ii , Mr M a o d,an n-a t d ae i t i matr
t ed
he r haf
i
s poston
. wj o
o p ry e lr n hs te ,
c i me how de ep i t s C hie La ' f t e wa i ta a ons M r M a o d sae
ontr d
g tve hi é t bel' eaur
W
s n r ns di . . wj o ttd,
ç r --eve y ie t tg t s ntoutt y i vi
i y
Eve
r tm ha e s e
o our ndi dualci nt uli a ey c e fo Hunt r
le s tm t l om s r m
e

W ie' M a o d De ( 1 - a 1 0 1 - 8 .Ev n moe tlng Mr M a o d noe ç
s . wj o p. DE 91 1 t 7 :6 1 ) e r el , . wj o td, ç
'
i
1
neve unde sood w hy t y w o d us Bl ks one M e a s G r p or a ot r na e, be a e
r
rt
he
ul e ac t
t l ou
ny he m
c us

whe ve we wo d as t tquesi i t e i' Hu e W ie t tsdoi i, a t tswhy
ne r
ul k ha
ton, n he nd ts nt r s ha ' ng t nd ha '
Ine runde s ood t . f at1 1 1 22.
ve
rt
hat' J. 74: 8- 75:
'

M r M a o d as tsiid t a Hu trW ie wo l stt e itrs a u t o t e
. wj o lo e tfe h t ne s u d e h ne e t mo ns n h
pur re l nsa f esHuntrW ie a t Deae De e n swoul c r r t lc t
po td oa nd e
e
s nd he
lr f nda t
d ha ge e ai usomer .
s

1 at 1 17 (ttng t t fes wee st t Huntr W ie die ty.And t whae i
d. 34:- sai ha e
r e t
by
e s r cl
hen
tver s

c mmu c td ( a kso eMeasGr u o e Bai Ke e )wo l p o a l h vea r e wi
o niae , Blc t n tl o p wn r rs s r u d r b b y a g e d t
h
i' .Hune W ie kne t tt Deae De e nt we e l ng t rti c tme s as i was
t'
)
tr s
w ha he lr f nda s r yi o eal uso r, t
Hunt rW ie t tc e e t f
e s ha r atd he onusa m a e i t De e Def nt us t do s .
nd t ral he alr enda s ed o
o

50

(
3)

Ai randAbet I e inal As itdi t Prmar Vi aton
de
tor ntnto l sse n he i y ol i
y

Syl a W iln s a f me br rde e i Huntr W i e s s me,a Fr nk Ga no,
vi
lim , or r oke - alr n
e
s ' che
nd a
udi
ow ne of Ll , Hunt r W i e' i e m edi r be w e n i a t D e l r D e e nt , bot
r
oyds
e
s s nt r
a y t e t nd he a e
f nda s
h

t tfe t ho Hunt rW ie heped a ma ge t s he . M s W ila sr ceved ad fom
esii d o w
e
s l
nd na d he c me
. li m e i
i r
Hunt W ie' r pr s nt tve on how t esa ih a f e g cor a i s t t s c d be a
er s s e e e ai s
o t bls
or i n por ton o ha he oul
Huntr W ie br rdeaer i Fl i .M s W ila s t s ii d t t he compa de nde on
e
s oke - l n orda
. lim e tte ha r
ny pe d
H unt r W i e f is a im one l unde i doc e s c pla e m a l , a r a e s r i e .
e
s or t nty a
r ng um nt , om i nc
nua s nd el t d e v c s

W iln Tesi
lims tmony,Feb.27,201 ( 300a 24:6- ) Shee anedt the c ny onl
4 DE
t 1 23 .
xpli ha r ompa
y
ha a oxi a ey $100, i c pialbec us Hunt rW ier e ve aloft r t lc t e s
d ppr m t l
000 n a t
a e
e s ec i d 1 he eai usom r '

money a s S d r ueta wie be s ntbac t twa due ba t ( r a fra t
nd he ç
woul eq s
r
e
k ha s
ck o he ) s a s he
comm isonsand t s r c a a i e e t'1 a 30: - M r Ga no t tfe aboutl ng
si
he e vie nd ny nt r s . d. t 1 3. . udi esii d
'
ooki
t HuntrW iet pr det s viesLl
o
e s o ovi he er c
oydspr
omot a isown.
ed s t
The e wines e des rbe how Hunt W ie' co uc not o y a de t De l r
s
t ss
ci d
er s s nd t
nl i d he a e

De e
f ndant vi a i ,but con r l d t i a lt t e ut t
s' oltons
tole her biiy o xec e hem a wel. W ihout Hunt r
s
l t
e
W ie' hep,t De l rDe enda swoul notha be n a et che tt vitm si t saci .
s s l he a e f nt
d
ve e bl o a he c i n hi ton
As t l a r oft s he Hunt rW ie d d m o e t n wha is a r e e sw ih t de l r
he e de
he c me,
e
s i
r ha
t t g e m nt t he a e s
des i d.W hie Hunt r W ie s
crbe
l
e
s ough t hi e be nd t c t n of is de l s t e de e
t o d hi he urai
t aer , he vi nc
s
hows Hunt rW ie wa c
e
s
s onductng t e ie or he ta.l ed,t de e spl ye t t t
i he ntr c sr nde he alr a d o he une
Hu e W iec e, tisdie ton.
nt r s hos a t r c i Now i r us t f c t musc
t ef es o a e he
i.
Ac or i y,t CFTC ha m e is bur n i pr ng Hunt r W ie i la e f fa
c dngl he
s tt
de n ovi
e
s s ibl or r ud

unde Se on 1 a oft Ac.
r di 3() he t

51

D . Cont oli Pe s
r lng r ons

The CFTC s ks t hol M r J ge a M r M a tn la e f r Ht e W ie s c
ee o d . a r nd . ri i bl o mt r s ' onduc
t

b c us t e c n r le t ec r o ai n l myFe r ay 1 , 4 Or e ( 28 ) lf u d M r
e a e h y o told h o p rto . n
b u r 9 201 d r DE 1 , o n .
J ge a M r M a tn la e a c r lng pe s ofHunt rW ie Ac r ng,I tnd t t y
a r nd . ri i bl s ontoli
rons
e
s . co di
i hat he

a ela l u d rS cin 1 cb , U.. j 1 cb a t Co n sTwo Th e ,a d Thre n o te
r ibe n e e to 3 ( ) 7 SC. 3 ( ) s o u t
, r e n ite f h
Compl nt Se o 13 b)e ans:
ai . din c( xpli
Any pe s who,die l ori r ty,co r s a pe s n who ha vi a e a
r on
r cty ndiecl ntol ny r o
s olt d ny
pr son oft sc pt rora oft r l s r gulto ,o or r is d pur uan
ovii
hi ha e
ny he u e , e a i ns r de s s ue
s t
t t scha e m a be he d la e f s h vi a i i a a ton br
o hi
ptr y
l ibl or uc olton n ny c i
oughtby t
he
Comm ison t t s me e e a s h c r ld pe s n.l s h a ton,t
s i o he a
xtnt s uc ontole
r o n uc ci he
Co mison hast bur n ofpr ng t tt c r lng pe s di nota ti
m si
he de
ovi ha he ontoli
r on d
c n
good f t o knowi y i
aih r
ngl nduce diec l or i r cty, t a t or a t
d, r ty
ndie l he c s
cs
c tt i t vi a i
ons iutng he ol ton.

7U.. j 1 cb . eElve t Cic th sn tdt a Se to 1 ( )o t Ac i ç b u p we
SC. 3 ( ) Th e nh rui a o e h t cin 3 b f he t s s o t o r
a
a i posng la lt f t ewho f i t e r s i t pr ve il lc
nd m i i biiy or hos
a l o xe cie t o e nt lega onduct'R. Fiz r d
.' J tge al
t Co. 31 F. a 1
t
, 0 3d t 334.The ç u m e a pum os ' of t sa ut i lt r c be nd t
û ndn nt l
f
e' he tt e s to ea h hi he
co por t en iy t t c r lng i vi l of t c or ton a t i
r a e tt o he ontoli ndi dua s
he op a i nd o mpos la lt f
e ibiiy or
vi a i of t Ac diecl on s h i vi l as wel a on t c por ton is l.' f
oltons
he t r ty
uc ndi dua s
l s
he or a i t ef ' #.

( u tn JCC,I .v
q o ig
nc .CFFC,63 F.d 1 5 5 7 ( 1h Ci.1 95 Un e S din 1 ( ) t
3 5 7,1 6 1 t r 9 :. d r e o 3 b , o
de ons r t t ta i vi
m t a e ha n ndi dualde e an ha c r o rt e iy r quie t CFTC t s
f nd t d ontol ve he ntt e r s he
o how

t c r lng i vi l ( )ha conr a ( lc good fih orknowi y i e t
he ontoli ndi dua: 1 d tol nd 2) a ked
at
ngl nduc d he

a t c n t ui t vilto S e 7 U.. j 1 cb ;I r Fis Na 1 T a ig Cop. ( 9 2
cs o si t he oain. e
t ng
SC. 3 ( ) n e rt t r dn r , 1 9 1 9 Trn frBi d r Co F t L. p (
9 4 a se n e) mm. u . Re . CCH)2 ,4 , t417 7(
6 1 2 a ,8 CFTC J l 2 1 9 ) afd
uy 0, 9 4 ,f '
wihouto ni s nom.Pi v CFFC, F. 11 ( hCi.1 .
t
pi on ub
, ck .
99 3d 39 6t r 996)
Ast t fr tpr
o he is ong,t e tbls con r ,t CFTC m us s
o sa ih tol he
t how t i vi pos es e
he ndi dual s s d
ge r lc r ove t o r ton oft e iy prncpaly la e.Se R. Fiz r d & Co. 31
ne a ontol r he pe a i
he ntt i i l i bl e J tge al
, 0

52

F. a 1
3d t 334.
The Co tm a fnd c r e sswher evi nc de
ur y i ontol xit
e de e monsr t t tt i vi l
ta es ha he ndi dua
i a o ic r f unde ,prncpal ort a horz d sg t y on t co pa sba a co t . See
s n f e,o
r i i , he ut i e i na or
he m ny' nk c un s

I r S e l (98 - 9 0 Trnse Bid r Co
n e pige, 1 7 1 9 a fr n e ) mm.F t L. p (
u . Re CCH)2 ,0 , t3 7 7 ( TC
4 1 3 a 4 6 CF
J n.1 1 ) Ast t s co pr t CFTC mus s w t i vi leihe lcke good
a 2, 988 . o he e nd ong, he
t ho he ndi dua t r a d
f t or knowi y i
aih
ngl nduce t ac s To e tbls good f ih,t CFTC mus s
d he t .
sa ih
at he
t how t tt
ha he

i vi
ndi dualf ie t m ant i a l ea ona y a uae s t m ofi e na s r son and c r '
al d o i an k s bl deq t yse
r
nt r l upe vii
ontol'
ordi no ove s et s tm ç t any r as bl dii nce'M onis v CF FC,996 F. 852,
d t r e he yse l h
wi
e ona e lge .'
e on .
2d

8 0( t Ci. 9 3 ( u tn Ha rs n v De n WitrRe n ls I c, 7 F.d 8 , 81(t Ci.
6 7h r 1 9 ) q o ig r io . a t y o d , n .9 4 2 73 8 7h r
e
1 9 :. e tbl h te S n wig i d c me t ee n ,te CFTC h st eb r e o s o n
9 2 To sa i h l o n n u e n' lme t h
s
k
'
a h u d n f h wig
t t % he c r lng pe s ha ac ual o c t u tve know l dg of t cor a tvii t t
ha t
t ontoli
r on d t
r ons r c i
e e
he
e c i tes ha
c tt e t vi a i a i s and a l
ons iut he ol tons t s ue
lowed t m t con i ' JCC, I . 63 F. at 1
he o
tnue.'
nc ,
3d
568

( tng f r S e , 24,03, a 34, . Co r lng pe s c
quoi n e pigel 1
t 767) ntoli
rons annot a d la lt by
voi ibiiy
delber t y orr kl sy a di knowldge a
i ael
ec es l voi ng
e
boutpot nta w r doi I r S e l 24,03,
e il ong ng. n e pige, 1
at 34,
767.Cours ha f
t ve ound t t c t c i knowl dge of wr
ha onsnz tve
e
ongdoi i s tcen f r a
ng s ufi i t o
tndi of knowi i uc m e .See JCC, I , 63 F. a 1
i ng
ng nd e nt
nc.
3d t 568. To s
uppor a fndi of
t i ng
c t c i knowldge,t CFTC mus s
onsnztve
e
he
t how t ta de e
ha
f ndantçlc d a t kno e o y
ça ke cual wl dge nl

be us hec ci l a de i. 1 a 1 (iai omitd)
ca e ons ousy voi d t' d. t 569 cttons te .
'
The CFTC alege t tM r J era M r M a tn c r ld a knowi y i
l s ha
. ag nd . ri ontole nd
ngl nduce t
d he
conduc of Hunt r W ie.M r J ge wa t Chaiman a Chif Exec i Ofi e of Hunt r
t
e
s
. a r s he
r
nd
e
utve fc r
e
W ie,a M r M ari was t Pr i nt a Chi f Ope a i Ofi e .Alhough M r M a tn
s nd .
tn
he esde nd
e
r tng fc r t
. ri
over a t da t da busne s o ai ns M r J ge ' posto wihi Hunt W ie
s w he y-o- y
i s per to , . a rs
ii n t n
er
s

demonsrtsheha knowl ofa çdie te t e nomi ape t' oft eniy.Apache
tae
d
edge nd ' rcld) he co c s cs' he tt
Tr ng Cor ( 990- 992 Trnse Bi r Comm.Fut L.Re (
adi
p. 1 1
a fr nde)
.
p. CCH) 25, a 38,
251, t 795

53

(
CFTC M a .11 1 .Boh i vi l we ea horze t a di e eri oag e me swih
r , 992) t ndi duas r ut i d o, nd d, nt nt r e nt t
t Supple s f H unt r W ie' m a g n t a ng ta a tons l s g ng t a ee e s a
he
i r or
e
s s r i r di r ns c i . n i ni he gr m nt nd
tadi w ih t Supple s M r J ger and M r M a tn we e a a e, or pur el a de
r ng t he
ir , . a
. ri
r w r
pos y voi d

be om i a e t tHunt W ie di notown orac r t c
c ng war , ha
er s d
quie he omm odiis. t r or Hunt r
te Furhe m e,
e
W ie co eli or d M r M a tn a M r J ge oft dif r nc sbewe owni me a f l
s uns nf me
. ri nd . a r he fe e e t en
ng t l uly
a t of s tt a ng Hunt r W i e w a c
nd he f e r di
e
s
s onduc i w ih t Supple s A s s h,I tnd t t t
tng t he
ir .
uc
i ha he
CFTC ha m e isbur n i s i t tM r J ge a M r M a tn c r l d H u e W ie and
s tt
de n how ng ha
. a r nd . r i ontole
nt r s

knowi yi uc dHuntrW iet vi aeSe ton4( oft Ac.
ngl nd e
e s o olt ci a) he t
l
V. RELI REQUESTED /DAM AGES
EF
Be aus Hunt r W ie c mitd faud a a de ot r i vi a i t Ac ,t CFTC
c e
e
s om te r
nd i d he s n oltng he t he

s e saCo r o d ra t rzn : ( )ap nn n n ij n to a ta ig a dr gsrto b n (
ek
u t r e uho ii g 1 e a e t n u cin nd r dn n e itain a ; 2)
r si to a d ()a Ci lM o e Pe at (t P' a an tHu trW ie M r J g r a d Mr
ett in; n 3
u
vi n y n l û
y CM ' g i s n e s , . a e, n
)
.
M ari
tn.

A.Pe mane I j i and Tr ng andRe sr in Ban
r
nt n uncton
adi
gitato
The A c a l s a di t i t c t çu
t low
sr c our, l pon a pr
oper s w i ' t gr nt a pe m ane
ho ng,' o a
r
nt

ij n to CFF v lhr I v Mgmt r ,5 F.d 1 3 ,1 4 ( 1h Ci.2 0 ) l
nu cin. C .Wis ie n .
.Cop. 31 3 3 9 3 6 1 t r 0 8 . n
rviwig te ga t o a ij ncin,th utmae ts . .i wh t rt e d fn a ts p s
e e n h r n f n nu to s e li t e t . s ehe h ee d n ' a t
t
c
onducti c t s t tt r i a r a ona e lkelhood of f t r vi ai i t f t e' 1
ndia e ha he e s e s bl i i
urhe ol tons n he uur .' d.

(ntr quoai omit ( tngSi i 178F. a 11 .Spe iialy,t f l ng fco s
i enal tton ted) cii dot,
3d t 37) cfc l he olowi a tr
s d be cons de e
houl
i r d:

( hee e o nes oft dee ntsa tons t iolt orrcure naur of
Tj grgius s he fnda ' ci , he s aed e rnt t e
t i r ton,t de ee of s i t r i ve t snc rt of t de e nt s
he nfac i
he gr
c en e nvol d, he i e iy
he f nda '
a s anc a ns f tr vi a i ,t def nda ' r cog ton oft wr f
s ur es gai t utze ol tons he e nt s e nii
he ong ul
naur of hi c
t e
s onduc ,a t lke i
t nd he i lhood t t t de e nts oc pa i wil
ha he f nda ' cu ton l
pr s ntopporunii s f f ur vi a i .
ee
t te or ut e ol tons

54

SEC v.Car i Ai,I .681F. 1 8,1 ( 1h Ci.1 .
rba r nc,
2d 31 322 1 t r 982)
As t t frt a s cond c i r to ,Hunt r W ie' eondud wa eg e ous a
o he is nd e
onsde ai ns
e
s s
s r gi
nd

r c r nt Forove a yea a a hal,Hunt rW ie m a m a e i m ir pr e a i a
e ure .
r
r nd
f
e
s
de t ral s e es nt tons boutt
he
pr ci me a ta aci ,t rs i ve and t s ce s oft i sm e , whie,a t
e ous t l r ns tons he ik nvol d,
he uc s
he nve t nt
l t he

s m etm e usng t f
a i , i he undst buy pr ci m eal fom t Supple s on is own be f Hunt
o
e ous t s r he
ir
t
hal.
er
W ie di notus t r t lcusome s'f
s d
e he eai t r bndsast we e s ppos d t be ts d:t bu pr ci
hey r u
e o
le o y e ous
metl on t i behafwih l ns As lno e pr vi l t s he M r J er a M r M a tn
as
her
l t oa .
t d e ousy, he c me . ag nd . r i
de ope wasc cult d t dec i r t lcusome s
vel d
al a e o eve eai t r .
The e de t CFTC pr s nt a ti de
vi nce he
e e ed t ral monsr t t t Hunt r W ie a e wih a
ta es ha
e
s ctd t
hi de eeofs i t r I wa a r t ti wa mil di isdownsr a c t e s t ti was
gh gr
cen e . t s wa e ha t s sea ng t
te m usom r , ha t

no alocai t f
t l tng he unds t pur ha e pr i m ea s o t r t i c t m e s be l, t t is
o e s ecous t l n he e al uso r ' haf ha t
tani a pr otona m ae i l we e wr
r i ng nd om i l tra
r
ong, a t t no l ns we e dibur e f r t
nd ha
oa
r s s d o he

c t m e s.I s
uso r t uppore a c r l t Dea e Def nt a Ll
td nd ontoled he
l r enda s nd oyds i t i s i tton of
n he r oleia i
r t i c t e s t acommi son, r c ve f esf o e r c t
e a l usom r , ook
s i and e ei d e r m ve y usomert twa mil .
ha s sed
Furhe
t nnor M r J ge a M r M a tn ha not r cog ze any wr
e, . a r nd . ri ve
e ni d
ongdoi . The
ng
lkelhood off ur vi a i i s r
i i
kt e ol tons s t ong,es c aly be us M r J ge a M r M a tn a g t t
pe i l ca e . a r nd . ri r ue ha
t ie
he r ondud i de r udi r t i e t e s out of m ilons of dola s w as l ii a e a bot
n f a ng e a l usom r
li
lr
eg tm t nd h
w e e a a e of M r M a tn' Uni e Cons nt O r r pr bii t e t f au he c m it d
r w r
. ri s
m t
e
de ohi tng he xac r d
om te
her
e.

The eor Ifnd t tapema ntij to i a o it be a e HuntrW ie,M r
r f e, i ha
r ne nuncin s ppr prae c us
e s
.
J ge ,a M r M a tn' a tonswe e r peae cal ,a blt nt
a r nd . ri s c i
r e t d, lous nd a a .

55

B. R estt i /D igor ent
iuton
s gem

The r co d co anss tcen e de e oft l s fo Hunt rW ie' a tons3 onl
e r nt i ufi i t vi nc
he os es r m
e
s s c i .5 y
sxt f ur c t m e s out of 3, t a c t r a e d a pr i durng t r ta a ons
i y-o uso r
283 ot l usome s chive
ott i hei r ns di
t oug Hunt W ie be we n J y 1 2011 a Fe u r 25,2013.Hunt W ie,on t ot r
hr h
er s t e ul 6,
nd br a y
er s
he he
ha be fte gr a l fom t e ta a tons The CFTC s eksr tt i fom Hunt rW ie
nd, ne it d e ty r hes r ns c i .
e
esiuton r
e
s,
M r M a tn,a M r J rf pr m a el c i t r t i c t e s l s s
. r i nd . age or oxi t y ausng he e a l us om r ' os e .

Unde Se on 6()oft Ad,t Cour i a horze t o de rsiuton.Se 7 U. C.
r di c he
he
t s ut i d o r r ett i
e S.

j1 a 1 S din 6 alwst eCF t rq s e u tb erme ist na y p ro f u di t e
3 - . e o @) l
o h TC o e uet q ia l e d e û n es n o n n h
o
a ton t ha c mit a vi ai ny i udi .
c i o ve om ted ny ol to ' ncl ng'
'

( r tt i t pes who ha s ti l s pr maey ca e by s h
A) esiuton o rons
ve usaned oses oxi tl us d uc
vi ai (nt n
olton i he mountofs h l s ) a
uc oses; nd
( digor me ofgai rc ve i c
B) s ge nt
ns e ei d n omwci wih s h vi ai
ton t uc olton.
7U. C.j1 1d)3)
S. 3a- ( ( .
The s t a i a per s ve na ur of Hunt r W i e' f a ne s ia e r tt i not
ys em tc nd va i
t e
e
s s r ud ce st t s esiuton

onl f t r ti c t r who t sii d t t l s t y s t i d due t Hunt r W ie'
y or he ea l usome s
e tfe o he os es he usane
o
e
s s
s hem e,but f al of Hunt r W i e' cus om e s a w e l H unt r W i e de l pe a s m e t
c
or l
e
s s t r s l.
e
s ve o d che
hat
f l t di c os m a e i l i or a i a
aied o s l e t r a nf m ton bout t com m odii s t a a tons i o w hi r ai
he
te r ns c i
nt
ch et l

c t r we e e e i
usome s r ntrng.Durng t r e nt pe i Hunt W ie a e i ento ly i
i he elva
rod,
er s ctd nt i nal n
de i ng t r t l c t er by gene a i a s ndi doc e s t t m i r pr e e a
ce vi he e ai us om s
r tng nd e ng
um nt ha
s e es nt d nd

om it d i o ton r ar ng Ht e W ie' ma gi tadi ac ount wih t me a sSupple s
te nf nna i eg di
mtr s s r n r ng c s t he t l
ir ,
t l nsHunt rW ie ofe e t hi rs a 1 pa si ve i t tans c i ,a
he oa
e
s fr d, he gh iks nd ow yout nvol d n he r a tons nd

3 M r M ari and M r J gerat mpt d t ar uet Spe a M oniorM eani Da i s
5 . tn
. a
te e o g hat cil
t
l e m en'
c l ul i oft l s s whi h t CFTC r le upon t c l a e t r t i c t e s t a
a c aton he os e , c he
ei d
o a cul t he e a l us om r ' ot l
l s s w asi or e t Af e r vi w i t e de e and t tm ony,how e ,lfnd t tt
os e ,
nc r c . t r e e ng he vi nc
es i
ver i ha he
CFTC' cacultonsa cur t y r l c t l s ss t i byt r ti c t r .
S l ai
c ael ete t he os e usaned he ea l usome s
56

Hunt r W i e' ow ne s p of m e a s o t r t i c t e s be f Hunt r W i e over a t
e
s s
r hi
t l n he e a l us om r ' hal.
e
s
s w he

whol s he e;a c t e ac ount e d no be c eaed wiho Hun e W i e s a ova .l
e c m
usom r c
oul t
r t
t ut
t r s ' ppr l t

r c i d t erti c so r 'f n a d d s es d t e d ae s p ois ke p n t mao iy o
e eve h eal u t me s u ds n ip re h e lr' r tt, e i g he j rt f
t fm ds f is l . W ihout c r c i t m a e i l i or a i r t i c t e s f c d t
he t
or t e f
t
or e tng he t r a nf m ton, e a l usom r a e he

ce t n l soft m one t y i t d,a ove 90% oft m di i f t l e t rf .
rai os
he
y he nvese nd r
he d, n ac , os hei unds

The e or lfnd t tr tt i f alr ti c t r l s s i a a oprae r m e
r f e, i ha esiuton or 1 ea l usome os e s n ppr i t e dy,

f rwhc Hu trW ie Mr M a t a dM r J g ra ej itya sveal la l .
o ih n e s , . ri n . a e r on l nd e rly ib e
n,
C. Cii M one Pe t
vl
y nal
y
A l w ih r tt i t CFTC s e a CM P a ns H unt r W i e,M r M ari a M r
ong t esiuton, he
e ks
gai t
e
s
. tn, nd .

J ge .TheCour' a hort t i eaCM P c
a r
ts ut iy o mpos
omesfom Se ton 6 d)1,whi pr dest t
r
ci c( ( ) ch ovi ha
a m one a y pe t ii t n
t r naly ûn he mount of not mor t n t hi r of $1 000 or ti e t
e ha he ghe
00,
rpl he
monetr gai 'may be i
a y n'
mpos d f e h vi aton agans any per o f
e or ac ol i
i t
s n ound t vi a e t Ac .
o olt he t

7U. C.j 1 - ( ( )A) The $1 000 a
S.
3a 1d)1( .
00, mountwasi rasd t $1 000 pe vi ai as
nce e o 40,
r olton,

a j se f rifain. e 1 C. R.j1 38. ed src c u tsi osto o t ecvlpe at
d u td o n lto S e 7 F. 4 . Th itit o r' mp iin f h ii n ly
m us be t a i l r a e t t of e e c ge ort nee f de e r e. CFFC v fev 541
t d tonaly el t d o he f ns har d he d or t r enc '
r
'
. y,

F. 11 2,111 ( t Ci. )
3d 0
2 11h r 2008 .
Hunt rW ieenga i awe lt
e s
ged n
l-houghtou s he e t de r ud appr m ael 3, r t i
t c m o fa
oxi t y 200 e al

c t r ,and i r eve $1 48196 13 i pr i due t s e c r s i t r t on l ns
usome s
t ec i d 8, , 4. n oft
o pr ad ha ge , n e es
oa
Hunt W ie ne rexe ut d,a f e f s r i s Hunt rW ie di no pr de.Se Summ a y
er s ve
c e nd e s or e vce
e
s d t ovi
e
r
Exhi t - D e e nt ' Fi nc Tr ns t o w ih Re ai Cus o e s CFTC Ex.69.Be us of
bi
f nda s na ed a ac i ns t
t l tm r,
ca e
is c
t onduc , a CM P i war a ed aga ns Hunt r W i e. The CM P a i t H unt r W i e i
t
s
r nt
i t
e
s
ga ns
e
s s

$55, 8 39,whi h r e e st pr tofti e Hunt rW ie' m one a y gai M r M a tn
445,92.
c epr s nt he oduc
rpl
e s s
t r n. . ri

a dM r J g raej it a ds v r l la l f rteCMP a c n r ligp ro s
n . a e r onl n e eal ib e o h
y
y
s o toln es n .

57

C O N CLU SI N
O

Bas d upon t Cour' fndi s t f t a
e
he
ts i ngs e orh bove, t CFTC has esa ihed by a
he
t bls
pr
eponde a of t e de e t t Hunt r W ie,Ha ol Edwa d M a tn,J . and Fr Ja r
r nce
he vi nc ha
e
s
r d
r
ri r,
ed ge
c mitd f a a ai d a a te Ll
om te r ud nd de nd be td oydsa t De l rDe enda si de r udi t r t l
nd he a e f nt n fa ng he eai
c t m e s.Fort s r as
uso r
he e e ons,J m e i due t be en e e i f voroft CFTC a t Co t
udg nt s
o
tr d n a
he
s o un s
Two,Thr e,a Thite oft Compl i .J
e nd re n
he
ant udgmen wilbe e e e i f vor of t CFTC
t l
nt r d n a
he

a i tt Hunt rW ie Def nda sby s pa aeor .
ga ns he
e s
e nt
e r t der

DONE AND ORDERED i Ch mb r i We tPam Be c , Flrd ,ti Z 6-d y o
n a es n s l a h o i a h s * -a f
.
.

M a 201
y, 4.

.*
.'
.

.'
.'

y
NALD M . I
M DDLEBROOKS
UNI
TED STATES DI
STRI J
CT UDGE
Copi st
e o:

Couns lofRec d
e
or
M e ani E.D n i n,Spe i lM onio a Cor a e M a er
l e
m a
ca
t r nd
por t
nag
J A . ng,jn os De e nt
ohn Ki jpr e f nda
Cha wik Hopki s / s De e nt
de c
ns rr e f nda

58