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

Filing 308

*ORDER re 307 Order. Per DE 307, the Court's previous order is replaced with the attached order Signed by Judge Donald M. Middlebrooks on 5/22/2014. (sw)

UNI
TED STATES DI
STRI COURT
CT
SOUTHERN DI
STRI OF FLORI
CT
DA
CASE NO . I 8I - M I
: Z- JII CV- DDLEBROOK SY M NNO N
UNI
TED STATES COM M ODI FUTURES
TY
TRADI COM M I ON ,
NG
SSI

Pl ntf ,
ai if
VS
.

HUNTER W I COM M ODI ES, LLC,e al,
SE
TI
t .
De e nt .
f nda s
/

O PI ON AND ORDER
NI
THI CAUSE c
S
omesbe or t Cour f fna diposto oft is pr s nt durng
f e he
t or i l s ii n he s ues e e ed i

a benc ti hel fom Fe ua y 26,201 t ough Febr r 28, 201 and M a c 3, 201 .
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br r
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ua y
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i ve m ir pr s ntng t natr ofpr i m eal ta a tons wih r t lc t e s a
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e
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he ur ntr
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nd 2)
nd . r DE )
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und s r t Or .
er epa a e der

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no m at r whe e t m a kes S *1'
te
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ny
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8 t ) i ttme t
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es . ag
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r alcuso r who l tov $5 milo fom J y 1 2011 t oug Fe u y 25,201 l
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M r J ge a M r a tn' l asno' was a we lplnned a exe ut d s me de i
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t tt
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e
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g d,sl r pltnum ,pa ldi ,a c r Huntr W ie c am e t pur s a s l t s
ol ive , a i
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e
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pr ci m ea sfom s r lSup ir .
e ous tl r eve a
ple s
a Caior a lmie labiiy compa sa td i J y 2007,
lf ni i td i lt
ny t re n ul
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tr s
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e
e se e
da i t d ibiiy ompany snc Ocobe 201 l mant i
i e t r 0, t i ans
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ut t s
s he e se e
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La Ve ,Ne da and l vne Calf r a.M r M a tn
s gas va
r i , io ni
busnes a e s s i
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a nt He a M r Ja ra e man er a me be sofHunt rW ie Com modii .
ge .
nd . ge r
ag s nd m r
e s
tes HuntrW ie
e s

Commodii i t s e me be ofbo h Hunt W ie Cr di,LLC a Hunt rW ie Tr di
tes s he ol m r
t
er s e t
nd
e s a ng,
LLC.Hunt W ie Commodii ,Ht e W ie Cr di,a Hunt r W ie Tr di a1 s r t
er s
tes mt r s e t nd
e
s a ng l ha e he
s m e busne s a e s i Las Ve a t s m e m alng a es i l vne. Hunt r W ie
a
i s ddr s n
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e
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5TheHunt rW ie Snveso s'M r J ge m e i do noti l t r t lcusome s who
e s t
i t r ' . a r ntons
ncude he e ai t r ,
entr i o Hunt W ie' pr i me a sta aci , t ewho i se i HuntrW ie.
e ed nt
er s s ecous t l r ns tons but hos
nve td n
e s

6F
ft i Or r K p les'n lde A- akPr cou M eas l c (% Ma k'
h s de,t pir'icu s M r e i s tls n .$
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)
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torpurBn oPLC çtn a d n ' a d tx s mmo iy r es d.ç txs).
n ad n
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es

Se v c as s r st lvi maii a es . M r M a tn a M r J ge a e t s e me be s
r i es lo ha e he r ne lng ddr s7 . ri nd . a r r he ol m r
a ma r of Hunt r W ie Se v c s LLC a a e t Chi Oper tng Ofi r a Chif
nd nage s
e
s r ie ,
nd r he ef
ai
fce nd
e
Exe utv Ofi e ofHunt rW i eSe vc , es ctvey. h M r M a tn a M r J gert tfe
c i e fc r
e s r ies r pe i l Bot
. ri nd . a esii d
a ti l
t ra .

M r M a tn has t ry-i yea s of e re
. ri
hit fve
r
xpe i nce i t pr c ous me a s i ty. Hi
n he e i
t l ndusr
s
pr c ousme al e inc i ude wor ng a M one Pr i M eal,f r e l Pa ûc Coas
ei
t s xpere e ncl s ki t
x ecous t s o m ry ci
t
Coi Exc nge, me Cr di Cor a i whe ehe wa i c geofbusne sde opme f
n ha
Uni t e t por ton, r
s n har
i s vel
nt or
t e buyi s li an tna i ofpr c o me a s8M r M a tn f unde a wa pr i ntof
h
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ng, e lng, d i nc ng
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Ca t l As e , whih wa i t busne s of buyi s lng, a sna ng c
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te

tans tonst
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alr
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t
st
ut i n sor ve ual e mi t
m r ha
pia s t
wa hi l s ve ur i c modii un i 2006,whe he and M r J rdec de t d veop t
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tes tl
n
. age
i d o e l he
busne spln f Hun e W ie.
i s a or t r s

M r J e has e ince i t s urte m a ke as wel Pror t wor ng f Hunt
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xpere
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ki or
er
W ie Com modii ,M r J ge r n,a c i st r n,Hunt rW i eSe urte ,as c ii s511
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1
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gul t y
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n he e d
ca t f Hunt rW ie a he wa r ponsbl f r ii t e t c pialf Hunt rW ie
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e
s nd
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e
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7I myFe r ay 1 , 2 4 Or e o t Pate ' oin f rS mma yJ dg n (t b u r 1
n
b u r 9 01 d r n he ris M to s o u r u me t d r a y 9,
Fe
2 4 Or e' ( 28 ) If u dt a Hu trW ieo eae a ac mmo e tprs .DE 2 1a
01 d r' DE 1, o n h t ne s p rtd s o n n e ie ( 8 t
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1 . t ughM r M a tnrnt busne ssda t da ope ains M r J e ' postonwihi
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e
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ntt
r or , ound t tM r M ari and M r J erc r ld HuntrW ie. d.
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hsc n u t t i tM r M a t wa p r n nt ej i dfo ma i mirprs nains
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n
y

a om itng dic os esr l t d t m ae i lf c sr ga di i or ton r l ntt ac t rs
nd
ti s l ur e a e o tra a t e r ng nf ma i eeva o usome '
de ii t e e i o a i t e i c
cson o ntr nt n nvesm nt n omm odii s Se Cons ntOr a t De e nt E.
te . e
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der s o f nda s
Keih Owe , M a tn, Ed M y s CFTC Ex.1 Fede alTr Commisi v Uni t
t
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er ,
59,
r
ade
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Cr di Cop.No.92- ( D. .Dec. 1 .
et r ,
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4

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ucal o
Hun e W ie' s ce s be us he pr de i
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ovi d mpora c ac s a de e m i d t sr t gi
tnt ont t nd t r ne he ta e c
die to oft c por to ali pa t r hi wih M r M a tn.
r ci n he or a i n, l n rne s p t
. ri

I addii t ot r ke e oye t tfed durng t ti :Sue M or l a St ve
n
ton, wo he y mpl es esii
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Fic M s M or e wa Hunt W ie' Diecor of Ope atons She r pore diecl t M r
th. .
als s
er s s r t
r i .
e td r ty o .
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f r d alr r i ng nd
kne wha s r i e Hunt r W ie ofe e t t de e s Ac or ng t Hunt r W ie' r c ds
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e
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r
bi
e s

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ae s p rs wih so r me ) y ae J 1
lprs n ) CFTC Ex. 7 Boh
6. t
e oye st sii d t Hunt rW ie' ope atonsi t comm o tesi ty.
mpl e e tfe o
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On De e r 5,201 t CFTC sld t Compl nt( 1 i t i tn a ton,
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ai DE ) n he nsa t ci
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le ng hit n
s a ns
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Fr nk olto .o
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ij n tv a de u tb erle a dp nat su d rt eAc.
n u cie n q ia l eif n e li n e h t
e

9The Co mt a i tHunt rW ie,M r J ge , nd M r M a tn c it d of
t s gans
e s
. a ra
. ri onss e :

1 Comt e v oain o S cin4() t eAc, U. C. 6 a ,h o g ilg lo f
. t On , i lto s f e to a of h t 7 S. j ( )t r u h l a, fe
e hangeta ac i agans al De e nt;
xc
r ns tons i t l f nda s

Co n Two, oain o S cin4 o t eAc, U. C j6 () a an tHu trW ie
ut
vilto s f e to b f h t 7 S. b a , g is ne s ,
M r M a tn,and M r J ger
. ri
.a ;

Co n Th e , i ai n o S cin 6c ( )o t eAc, U. C. 9 1, n Ru e1 0 1 1
u t r e volto s f e to ()1 f h t 7 S. j ( )a d l 8 ,, 7
C. R.j 1 1 agans HuntrW ie,Mr M a tn,a M r J ge ;
F.
80., i t e s . ri nd . a r
4. Co n Twev , oain o S ci n4 o teAc, U. C. 6 a , o fiu et rg se
u t le vilto s f e to d f h t 7 S. j d() f r alr o e itr
a i tHunt rW ie,M r M a tn,a M r J ge ;a
ga ns
e s
. ri nd . a r nd

5 Co n Thite , i n a da etn u d rS cin 1 ( )o t eAc, U. C. 1 c
. u t re n adig n b tig n e e to 3 a f h t 7 S. j 3 ,
a i tHun e W ie M r M a tn, M r J ge .
gans
t r s , . ri and . a r

(
Compl,DE 1. e hoft i vi l non- iyDee nt a f ea h oft Count,
.
)For ac he ndi dua, entt fnda s nd or c
he
s
t Compli alge c r pes la lt purua t Se ton 1 b)oft Ac,7U. C.
he
ant le s ontol ron ibiiy s nt o ci 3(
he t S.

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3()
1 Do d F
0 d - r x nd h
S u idci
n u ng cin c( ( o h t
U. C.j2()2)D) whihpr des i petne pa t
S.
c( ( , c ovi ,n ri nt r:
5

On De e r 6 2 2 t e CF sld a M oin f r P ei nay lj ncin ( 4
c mbe , 01 , h TC e
to o r lmi r nu to DE )
s e i t e j i t e Dee a t fo o frn a d e e ui ilg l rti c mmo i
e kng o no n h
fnd n s r m fe ig n x c t le a eal o dt
ng
y
tans tons On Fe u r 22,201 afe t Co thel a he rng on t M o i f rPr i i r
r aci .
br a y
3, tr he ur d
ai
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( Reai c
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t r aci

()Appl a iiy
i
i bl
e t
Exc p a p o d di ca s (i,hi s b aa rphs al p yt a y a r e n ,
e t s r vie n lu e i) t s u p r g a h l a pl o n g e me t
c r t o ta a ton i any c
ontac , r r ns c i n
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e trdit wi , ro fr dt (ve i n te tr dit wi , p ro
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h
h)
t ti notan ei bl conta tpa tcpa orelgi e c me cile iy;
ha s
lgi e
r c rii nt
i bl om r a ntt
rd

(1 e tr dit o o fr d(v ni n t ntr dit) o alv r g do
1 ) n ee no, r fe e e e f o e ee no , n e ea e r

m a gi ba i,orsna d by t ofe or t c e pa t o ape s
r ned ss
nce
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ac i i co e twiht ofe ororc t a t on asm iarbass
tng n nc r t he fr
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i l
i.

(i Exc i
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Thi s r gr ph s l nota yt s ubpa a a ha l
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a a r e n , o ta t o ta s cin d s rb di p r g a h ()o
n g e me tc n rc, r r n a to e cie n a a rp 1 r
s paa rp ( , B) o ( ,n ldn a ya r e n , o ta t o
ub rg a hs A) ( , r C) icu ig n g e me t c n rc, r
tans ton s ciial e l dfom s r grph ( ,B) or( ;
r aci pe fc ly xcude r ubpa a a A) ( , C)

(1 a s c iy;
1) ny e urt
(1) ac r c ofsl t 11
onta t ae hat

( ) r s t i a t ldei r wihi 28da ors hot rl
aa euls n cua lvey t n
ys uc he onger
perod a t Com m ison m a de e m i by r l orr a i
i s he
si
y t r ne
u e egulton
bas u t t c c
ed pon he ypial omm e cilpr tc i ca h ors tma kes
r a ac ie n s
po r t
f t c
or he omm odiy i ve or
t nvol d;

(
bb) c e t a e orea eoblgai t dei rbewe as le a a
r aes n nf c bl i ton o lve t en elr nd
buye t thavet a lt t dei ra acc ptdei r
r ha
he biiy o lve nd e
lve y,
r pe tvel i com e ton wih t lneofb i s oft s le
es c i y, n l c i
t he i
usne s he e lr

a buye l)
nd
r.
7U. C.j2()2)D) Foramo edeaieddic sonrgadi Dodd- n sc ng t t Ac
S.
c( ( .
r t l s us i e r ng
Frnk' ha es o he t
a t r r m e t tr t lcomm o t ta ac i occ on a r gul ed e hange,s et
nd he equie nt ha eai
diy r ns tons ur
e at xc
e he

Cour' Feb uay 1 201 Or r ( 281.
ts r r 9, 4 de .DE )
6

Ij n to t eCo r is e a Or rTe o aiyAp oitn S e ilCo o ae Mo io .(
n u cin, h u t su d n de mp rrl p n ig p ca m rt n tr DE

7 )1 Th Co r is e a Or e o Plitf M oin f rPrlmiay Ij n to ( 7 )o
7 .1 e u t su d n d r n an ifs to o ei n r nu cin DE 8 n
Fe r ay 2 ,2 3 fndn ta te CFTC h sj rs it n o rte c mmo iista a to a
b u r 6 01 , i ig h t h
a u id ci ve h o dte rns cins t
o
is i tei tn matra dwa e t ld t ap ei n r ijmci na d ohe e utberle .
sue n h nsa t te n s ni e o r l ay nt to n t r q ia l eif
t
mi
The Co t a s r fim e t Spe a M oniors a hort as i r l es t t c por t
ur lo ea fr d he
cil
t ' ut iy
t eat o he or a e

Dee nt.2(eeDE 78. t33- .
fnda s1 s
a 37)
Tht Cour e e ed a Or ron t Pa te 'M o i f rSumm a y J m e on Fe ua y
t nt r n de
ht ri s tons o
r udg nt
br r

1 2 4 ( 281.I t Fe r ay 1 ,2 4 Or e ,te Co r g a td s mma yj d me ti
9, 01 . DE ) n he b u r 9 01 d r h u t r n e u r u g n n
f vo oft CFTC a a ns t Hunt W ie De e
a r he
nd gai t he
er s f ndan s a t CountOne oft Compli ,
t so
he
ant

vi ai ofSe ton4( oft Ac:il lof- ha ta aci ;a CountTweveoft
oltons
ci a) he t lega, fexc nge rns tons nd
l
he
Compli ,vi ai nsofSe ton 4d oft Ac f f iur t r git .The e or ,t Cour nee
ant ol to
ci
he t or a l e o e ser
r f e he
t d
onl add es Count Two, vi ai of Sec in 4b of t Ac 1 by c tng, de r udi or
y
r s
ol tons
to
he t3
hea i
f a ng,

1 M eani Da in, t Cour-ppoi ed SpecalM onior t sii d durngt ti r gar ng
1 l e m a he
ta nt
i
t , e tfe
i he ral e di
Huntrw i e sm a gi ta ng a c s t l s st r t i c t e sduet Hunt rW ie'
e s ' r n r di c ount , he os e o e a l usom r
o
e s s
s he a HuntrW ie' pr is
c me, nd
e s s ott .
1 o n APr11 , 201 , t El nt Cic tafimed t Cou tsOr on Pli ifsM oton f
2
i 5
4 he eve h r ui fr
he
r ' der
a ntf
i or

Prlmia ylj ncin CFF v Hu trWieCo dde, LC,-F.d-, 01 W L 1 2 4 ,
ei n r nu to . C . ne s mmo i s L - 3 - 2 4
4 4 35
# 2( 1hCi. 1 )( e en he ,Q ne Wie'.niso no ,heElv n hCic i: 1 f u d
1 1 t r 20 4 h r ia r ç tr s ' I t piin t e e t r ut ( ) o n
Hu
)
noer wiht Cour' fct lfndi a agee wih isl alc l i ;( hedt tt
ror t he
ts a ua i ngs nd r d t t eg oncusons 2) l ha he
CFTC ha e or eme a hort ove t diput pr ci m ealta a tonsa t tno
d nf c nt ut iy r he s ed e ous t r ns c i
nd ha

e c p in a p id; n ( )afr dteCo r' g a to p ei n r ij nci nb c u ete
x e to s p le a d 3 fime h u ts r n f r l ay nu to e a s h
mi
CFTC ha plad aprmaf ce c s ofavi a i o t Ac . d.a #1
d e ed i a i a e
olton f he t 1 t 2.
1 Seci 4 oft Ac saes i pe tne tpa t
3 ton b he t t t , n ri n r :

()Unl ulacins
a
awf to
I s l be unl w f t ha l
a ul

(
2)

f a pero i ori co ci wiha or t ma ort maki
or ny s n,n n nne ton t ny der o ke, he
ng
of a contac ofs eofa commodiy f f ur delve y,ors p,t t
, ny
r t al
ny
t or ut e i r
wa ha
7

a tm ptng t ch t or defa r t i cusome s i c mec i wih r ti c
te i o ea
r ud e a l t r n ol ton t ea l omm odii s
te
ai
ta a to s Co n Th e ,vo ai n o S cin 6c ()o te Ac 1 a d Regulton 180 16b
rnscin ; u t r e ilto s f e to ()1 f h t4 n
1 y
.

i made ort be ma f roron be l of orwih, ot rpe s ot r
s
, o
de, o
ha f ,
t any he r on, he

ta o o s be t oter e o ad sg ae c nrc mak t
h n n r u j c t h uls f e in td o ta t r e(
A) t c e t rd fa o atmp t c e to d fa dt eohe pes n
o h a o erud r te t o h a r e ru h t r ro ;
(
B) wilul t ma eo c u et b ma et t eo h rpes na yfle
lf ly o k r a s o e d o h t e ro n as
r po torsa e nto wilu l t e e orea e t be e e e f r
e r
t t me r lf ly o nt r
us o
nt r d o

teo h rp ro a y flerc r ; o )
h t e es n n as e o d ( r

(
C) wifl t deev o atmp t d c ieteoh rp ro b a (mens
l ul o c ie r t t o eev h te esn y n a
l y
e
wha s ve i r ga d t any o de or c r ct or t diposton or
toe r n e r o
r r
onta
he s li
exe uton of a or er or c r t o i r ga d t any ac of a
c i
ny d
ontac , r n e r o
t
genc
y
peror d,wih r pt t t a o de o c r c f r or i t ca e of
f me
t es c o ny r r r onta t o , n he s

p r g a h( ) wi t eoh rp ro .
aa r p 2 , t h te e s ng
h
)
7U. C. 6 ( )2)
S. j b a ( .
1 secto 6 c( )o teAc p o ie , i r l ntpart
4 i n ()1 f h t r vd s n eeva
:
I s l be unlwf lf a pe s die ty or i r c l , t us ore pl y,or
t hal
a u or ny r on, r c l
ndie ty o e
m o
at
tempt t us or e oy,i co c in wih ... a contac of s l of an
o e
mpl
n nne to
t
r t
ae
y
c modiy i it r t t c
om
t n n e sae omm e c ...a m a pultve orde ptve de c o
re
ny ni ai
ce i
vi e r
co rva ,i c r ve i ofs h r l a r gultons as t Com m ison
nti nce n onta nton
uc ues nd e ai
he
si
s l pr m ul t .
hal o ga e

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

1 R ul 18 .1r ads i pe tne pa t
5 e 0 e , n ri nt r:

()I s alb u lwf lf ra y pes n,drcl oridr cl ,i c n e t wi
a t h l e n a u o n ro ie ty n ie ty n o n ci
on t
h
a ...c r c of s l of a y c modiy i i t r tt c
ny
onta t
ae
n om
t n n e sa e omm e c
re
i e i lyorr kl sy:
nt ntonal
ec es l

. . .

( )Us o e o ,o atmp t u e o e ly a y ma iultv
1 e r mply r te t o s r mpo , n
np aie
de c s m e ora tfcet de r ud;
vie, che , rii o fa

( Make oratmptt ma ,a unr ormila ng saeme ofa
2)
, te
o ke ny tue
se di tt nt
ma e i f tort om i t sa eam aeralf tnec s r i or rt
t ral ac
o
t o tt
t i ac
es a y n de o

ma t saeme sma notunt' ormiladi ( )
ke he tt nt de
l
ue
se ng; or
( Engag oratmptt e ge i a a t pr cie,orc s of
3)
e, te
o nga , n ny c, a tc
oure
busne s whih ope a es or woul ope a e a a fa or de i
i s, c
rt
d
r t s r ud
cet
upon any pe s
r on.
8

t
o

e oyi a s heme or a tfc t de r ud i c
mpl ng c
rii e o fa n onne ton wih con r c s ofs l ofc
ci
t
ta t
ae
omm odii s
te ;

a dCo n Thre n ad n a d a et un e S cin 1 ( )o t eAc,7U. C.j1 ca .6Th
n u t ite , ii g n b ti d r e to 3a f h t
ng
S.
3 ( )l e
CFTC al st M r M a tn a M r J gerde ope a s heme usng Hunt rW ie' co port
lege hat . ri nd . a
vel d c
i
e s s r ae

web t de r ud ove 3, r t lcusome s a r s t d i t r t lcusom e s l i ove $52
o fa
r 200 eai t r nd e ule n he eai t r osng r
milon fom J y 1 2011t ough Fe ua y 25,201
li r ul 6,
hr
br r
3.
B. TheCa i ' Ope atons
s no s
r i

Hunt r W ie' s he was a mulilve m ode .Fis ,t Deaer Def nda s woul
e
s s c me
t-e l
l r t he
l
e nt
d
c ac a s ii novie a a ae i ve t st e e it fna e c modii stans tons
ont t nd olc t
c nd m tur n sor o nt r n o i nc d om
te r ac i
usng Hu e W ie' doc e s a tai ng ma e i lt gui t m .Nex ,t de e s woul
i
nt r s s um nt nd r ni
t ra o de he
t he alr
d

s nd t r t i c t
e he e a l usomer ' f nds t Huntr W ie who woul i tum diti e t de e s'
s u
o
e
s,
d n t
srbut he alr
a plc bl s r oft f esa i e es.La ty,Hu e W iew o d us t r ma ni f ndst
p i a e ha e he e nd nt r t sl
nt r s
ul e he e i ng u
o
e e i o m a gi ta ng ta aci ns wih t me a s Supple s Hunt r W ie see e a
ntr nt
r n r di r ns to
t he t l
ir .
e
s t r d nd
c r ld e y as toft spr es .
ontole ver pec
hi oc s

()
1

T e Reai Cu tme s'I tr cin wi te De lr Dee d ns a d
h t l so r ne a t s t h
o
h
ae f n a t n

H unt W i
er se

Be us of t De e De e nt 'm ir p e e a i ns t e i sor , ie. t r t i
ca e
he alr f nda s s e r s ntto , hes nve t s . , he e a l
c tm es t
uso r , hough t y we e pur sng pr c ous met s fom t De e De e nt on a
t he
r
cha i
ei
al r
he alr f nda s

1 C. R.j 1 1
7 F.
80.,
1 se ton 1 a oft Ac pr de ,i rl ntpat
6 ci 3() he t ovi s n eeva r:
Any pe s who c
r on
omm is o who wilu l ai , a t, c
t, r
lf ly ds be s ouns s c
el, omm a ,
nds
i es orpr ur st commi son of a vi ai ofany oft pr sonsoft s
nduc ,
oc e he
si
, olton
he ovii
hi
c pt r ora oft r es r gul i ,oror r i s d pur uantt t s c e ,
ha e , ny
he ul , e atons
de s s ue
s
o hi hapt r
orwho ac si c
t n ombi to o conc r wih a o he pe s n i a s vi ai n,
na i n r
e t t ny t r r o n ny uch ol to
o who wiluly c us sa a tt be done o om it d whih i die ty pe f m e
r
lf l a e n c o
r te
c f r c l r or d
o omit d by hi ora he woul be avi a i oft pr sonsoft sc e
r te
m
not r
d
olton he ovii
hi haptr
o a of s h r e ,r gultons or o de s may be hel r po i e f s h
r ny
uc uls e a i ,
r r
d es nsbl or uc
vi a i asaprncpa .
olton
i i l

7U. C.j1 ()
S.
3ca .
9

fna d ba i .For e m pl , t Deaer Defnda s we ies c am e t r t i c t r
i nce
ss
xa e he
l
e nt ' bst l i d hat e al usome s

woul be buyi me a s but t t t m eal wo d be sor d i a de io y,whih woul
d
ng t l ,
ha he t s ul
t e n
post r
c
d
r quie a sor ge f e.See eg. Bl c t W e ie, CFTC Ex.5 a 4.The De l rDe e nt
e r t a e
, . , a ksone bst
2 t
a e f nda s
c amed t o e t r a lc t r s it d a down pa e t t r t i c t e s woul
li
hat nc he eti usome s ubm te
ym n , he e a l usom r
d
r c ve a l n t c r t r s of t c t of b ng t me a s The r t l c t
e ei
oa o ove he e t he os
uyi he t l .
eai usomer wer
s e
c r d e r tnti e es on t s pur e l ns1
ha ge xo bia nt r t he e pos d oa . 7

Reai c t e s e c e t r a t bt is of t i i sm e i t e metl
t l usom r xpe t d o e p he nett
her nve t nt n hes
as
c
ommodiy ta a tons Huntr W ie' o tani ma e i s whi i ofe e t De e
t r ns c i .
e
s s wn r i ng t ral,
ch t f r d o alr
Defnda s t us on r a lc t m e s c am e t tta ng i pr c o me a swas a l e u
e nt o e
eti uso r , l i d ha r di n e i us t l
ç di m
m
rs i t nt'a t tr ti cuso e s s w G r 300% r ur .' CFTC Ex. 11 a 7, 1
ik nvesme ' nd ha ea l t m r a t
ove
et n '
2 t
2.
Furhe ,t Hun erW ie- r a e tani ma e i l pr s ç
t r he
t
s c e t d r i ng t ra s omied ç i a owne s p' oft m eal
physc l
r hi ' he t s

t twer lq d a woul Kawa ha val 'f a 31.
ha
e i ui nd
d l ys ve ue. #. t
'
The r t l c t r e e e i o s ve a ag e m e s wih t De e De e nteai usome s nt r d nt e r l r e nt t he alr f nda s
a e m e s t t we e pr pa e by Hunt r W ie A Cusom e Loa Se urt & St ag
gr e nt ha
r e rd
e
s.
t r
n, c iy
or e
Ag e me pr dedt tispur ewa t
r e nt ovi ha t pos s o:

stf rh t tr u d rwh c ( ed ae )wi ln t Bo r we ,fo tmet
e o t he e ms n e ih t e lr l e d o ro r r m i o
h
l
t ,p y ia c mmo te (h t o dt Lo n ',a d s ms o mon y t
i h sc l o diis te f mmo i a s) n u f e o
me
y
purhas physca c
c e
i l ommodiis(heç s Adva es),i l ng,butnotlmie
te t i h
ca
nc ' ncudi
i td
t de i r t a depost y, coss f es sor ge, c lt r , s urt i e e t
o, lve y o
ior
t, e , t a
ola e al ec iy ntr s,
ce t n rs and c t a s it d wih ea h l n ta aci .
rai iks
oss s oca e t c oa r ns ton

Cu tme Ac o n Ag e me tTe lt,CFTC Ex 1 0 a 4 ( r ia r tw a Ag e me ' .
so r c u t re n mpae
. 5 t heen he, ç o n r e nt)
l
'
Fr t sLoan Ag ee e ,t r t i c t e s we e l d t bei ve t tt i er s t y we e
om hi
r m nt he e a l usom r r e o le ha he nt e t he
r
payi was f t l ns t rde e sfnanc d f t e ta a tonsand t tmetl sor d on
ng
or he oa hei alr i e or hes r ns c i
ha
as t e
be foft r t i c t e sa t ly e sed.
hal he e a l usom r c ual xit
1 Asdes rbe be o , t r t i c t e sdi no a t ly own a m e asa Hunt rW ie
7
c i d l w he e a l usom r d t c ua l
ny t l nd
e s
ne re c ed a l .
ve xe ut ny oans
10

As pa t of t s heme,Huntr W ie c eaed t
r
he c
e
s r t emplt a is d doc
aes nd s ue
ument on t
s
he
Deae De e nt ' behaf t oug is onlne datbas c le t ç t .' Hunt W ie
lr f nda s
l hr h t
i
a e a ld he l al '
por
er s
mai ai d a c r l d t s E t ,'whih alowe de e s a r t i c t e s t a ce s
nt ne nd ontole hi G al'
por
c l d alr nd e a l usom r o c s
t ra c
hei c ounta ta a i n i or ton a alowe t De e Def
nd r ns cto nf ma i nd l d he alr endan s t pr pa e r pors
t o e r e t
on t i r t lc t e s Hun e W ie ge r t d t ac ountdoc e st we egi n t r t i
he r eai usom r . t r s ne a e he c
um nt hat r ve o e al
c ume s e n t h t y wer on t De l rDe e
ons r , ve houg he
e
he a e f ndant lter a a appe e t befom
s' e t he d nd
ar d o
r
t Dea e De en nt.The doc
he
l r f da s
ument i l
s ncuded Tr de Confnna i notce , t x f ms Notc
a
i ton i s a or , ies
o Tr ns e s a a countsa e e s Furher Hunt rW iepr de ta ni m aera sa ot r
f a f r , nd c
tt m nt . t ,
e s ovi d r i ng t il nd he
s r i st tt Deae Def nt us d t s i tr t i c t r a m ant n t rac ount i
e vce ha he
lr enda s e o olci e a l usome s nd i ai hei c s n
or rt c i t s he e. e Fic Tesi
de o ontnue he c m Se t h tmony,Fe 27- , 201 M a .3,2014.A1 oft e
b 28
4, r
1 hes
doc nt co ane mil a ng sa e e t o de e i om isonsr ga di whe he t x t i
umt s nt i d se di tt m n s r c ptve
si
e r ng
t r he ea l
c t r a ly owne pr ci m e as
usome s dual
d e ous t l.

Thr ug t poralordic son wih t i d l s t r t i c t e st htt y we e
o h he t
s us i
t her eaer , he e a l usom r houg he
r
a et buy a s lm eal.I t i ta ng e uiy f l be o a c ti pe c nt ge, he woul ge
bl o
nd el t s f her r di q t el l w eran r e a t y
d t
am a gi cala t y woul ha t depostm or m one i o t rac ount I t i poston f l
r n l nd he
d ve o
i
e
y nt hei c . f her ii el
t an e n l r e t per e a pa tof t r t i c t r 'a ountwoul be lqui e
o
ve owe quiy c nt ge, r
he e a l usome s cc
d
i datd
u i t r we e e
ntl he t r noug f
h undsi t a c
n he c ount s t tt e t pe c nt wo d be o rt
o ha he quiy r e age ul
ve he
m a gi cal a
r n l mount Ht e W ie ha t a lt t i
. mtr s d he biiy o mpos m a gi ca l a lq da e r t i
e r n ls nd i ui t e a l
cus o e s postons
t m r ' ii .

()Hu trFfe'Man ge n o h De lrDee d t
2 n e s s a me t fte a e f n ans
'
I i a r ntt tt whol s he woul f l a r wihoutHuntrW ie' e rpr s nt
t s ppa e ha he
e c me
d al pa t t
e
s s ve - e e
ove sg .Fore
r iht
xnmpl ,Fr nk Ga no,t owne ofLl ds Comm odiis t sii d r r ng
e a
udi he
r
oy
te , e tfe ega di
how m uc he a t De l r De e nt de nde on Hunt r W ie t ope a e t s he e
h
nd he a e
f nda s pe d
e
s o
r t he c m .

11

Ll dswasr ponsbl f r c utng t de lr who s i td t r t i c t e s f Huntr
oy
es i e or e r ii he ae s
olcie he e al usom r or
e
W i e Al ofLl ' lr us Hunt W ie' s r ies Se Ga no Tesi
s. l
oyds deae s ed
er s s e vc . e udi
tmony, M ar 3,201
.
4.

Ll
oyds s ve a a i e medir bewee Hu e W i e and t Deae Def nda s i
er d s n nt r a y t n nt r s
he
lr e nt ; t
p ovi d no ot rs r ce t t d l s 1 Alho h Ll ydsw o d 5nd de l r t do busne s
r de
he e vi s o he eaer . d. t ug o
ul
aes o
i s

wih Hun t W ie,i wasHunt rW itt tr n t ba kg ou c kson t e de l r t e ur
t
tr s t
e s ha a he c r nd htc
hos a e s o ns e
t i cr di lt I wa Hunt rW ie t twoul dt op t tc tnum be wih a prce f al
her t biiy. t s
e
s ha
d vtl he i ke
r t
i or 1
ta a tons f Ll
r ns c i
or oyds t r a t t de l s and t de e s t t r t i cusome s.l wa
o ely o he aer ,
he alr o he e al t r t s
Ht e W ie t tpr de t s r c Ll dscai e i pr de i ispr
mtr s ha ovi d he e vies oy l m d t ovi d n t omotona br hur ,
i l oc es
whih we e i ntc t t e cai d i Hunt W ie 'own pr
c
r de ial o hos l me n
er s s
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rm ani norde i r m ea st t r t i c t r .Ye ,t r t lc t e s pai f es a
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eg t -eg d lasa dt it -fv c n sof mo e we t
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15

Letrfo W i el t Ne rd e( b. 3 2 2 ( TC Ex. 6 . r W i el ,a
te rm mb ry o wb ig Fe 2 , 01 ) CF
3 ) M . mb ry n
uns siaed i t who r ceves So al Se iy c ks a a VA pe i
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i t nt . e W i be l Te tmony, b. 201 W hiet r we ers i i si
nvesme s Se m ry s i
Fe 26, 4. l he e r iks n nve tng
i sl r M r Che k convi e hi t tsl rwasunde vaue a woul onl g u
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pos

Dea r De o i l S r ie Co a y (:
lwae p st . e vc
oy
mp n t
DDSC' d td Se t mb r 1 , 2 1 ta sae ,
' ae p e e 4 01 h t ttd
)

ll n e W ieSe vc s LLC' (i)r c r srte tta a o 9 1 / 01 y u c re tp sto s
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l
S sc e o d el c h t s f /4 2 1 o r u rn o i nt)
i
wih C. .Hop ns M e al Di son a e 'a pur s of t ry ounce of gol CFTC Ex.44.
t D
ki
t s vii r '
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hit
s
d.
Bas d o i or ton Hunt rW ie pr de M r M ezge wa t d nei a owne of'g d.
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be
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#.

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t . t ge ve e i d he d r iver uppos dl owne l Dec mbe of
e y
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2 2 wh nM r M ez e ake Blc so ede lrM u arm M a o dt d l e h smeas M r
01 , e . tg r s d a k t n ae k rn
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v
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wj o ake i ut f h t e u s, v n ho h . tg r a le d o t
a oxi el $7, of t $ 0 he had i sed.M r M e zge wa convi d by M r
ppr mat y 000
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nce
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1
6

Attee d o t esxyda s Mr Ma o dwa n wheet bef u d. . ez e c le
h n f h it y , . wj o s o r o o n Mr M tg r ald
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nd e t m
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lan d Mr M a o d sv iemal x wa f l a dhen v rs o et M r Ma o da an. i
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t l n s m t as t tm nt e i it s l nc t 975. onsde abl

ls t n t $20, he ha i sed.M ez r Blc t Ac
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( F'c Ex. a 9 .
C r
41 t )2
2
Huntr W ie pr de t t s f t De e De e nt t m ir pr s ntt t of
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2 d
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t tdi notgua a e t e senc oft c
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Hunt rW ie wilngl de r d isc t r .
e s li y faude t usome s

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Fr
ni fr
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As Dodd- a nea e i plm e a i Hu e W ie s ht wa of con i ng t
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CFTC' j rs ito Hu trW iehr d s v rlatr e st a vs i o iss h mea d o t e
S u idcin. ne s ie e ea to n y o d ie t n t c e n n h

2 Thr e a tona r t lcusome s ParcaM e c l Andr Bur a Robe tBa a
2 e ddii l eai t r , ti i r a do,
ew
k, nd
r um n
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t e ewe he poston e tmoni oft r t i cusom e s
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2 M r M a o dtsiid t he 1frtc meit t sb i s a Ll y sAs e Ma g me t
3
wj o e tfe ,l n is a n o hi usne s t o d s t na t n,
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t y i r e m et a s re ofvi ost tHuntrW ieha a i br down exa ty how
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De ,( 1 - a 49:8- .
po. DE 91 1 t 1 24)
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i plcai ofDodd- a Durng t r e ntpe i Hunt rW ie' f merc eli l d
m i tons
Fr nk. i he elva
rod,
e s s or
ouns ncude

J m Gi nnone (l ovn
ol ova
sGi nnone' f me l ofGr nbeg Trurg;Ti hy Caey (ç r ' of
' or ry
)
ee r a i mot
r 4Caey'
)
W i t a Sta
nson nd r wn, a f me l of De y & Le
nd or ry
we
Boeuf a J y Br c Gr s n
; nd a
u e os ma

(i o s r' o JB.Gr s n PA o t ef r r513Gr s n Gr e beg P irt a d atr
ç smaf) f . osma
Gr
r h o me 7 osma e n r . ro o n fe
1
Dodd- a bec me e f ci Hunt rW i e sc
Fr nk a
f e tve,
e s ' ouns le ai d t M r J ran M r M a tn t
e xpl ne o . age d . ri he

s rousl lis sas oc ae wih Hunt rW ie' oper to .W hie M r Gi nnone wa m o e
e i ega s ue s it d t
e s s
ai ns
l . ova
s r
a ma a
da nt boutHun e W ie,M r J er a M r M a tn' cvi a c i i la lt M r Ca e
tr s
. ag , nd . ri s i l nd rm nal ibiiy, . r y,
a e n M r Gr s a i c t d t tHunt rW ie doc e sa a i woul vi ae Do
nd ve
. os m n, ndia e ha
e s
um nt nd ctons
d ol t ddFr nk.
a

( )M r Gi non 'Dodd- ank War ngs
1 . ovan e s
Fr
ni
Ast J y 1 2011 da e f Dodd- a t be om e e f ctve a oac
he ul 6,
t or
Fr nk o c
fe i ppr hed,M r M a tn
. ri
a M r J ge r c ve sr wa ni fom M r Gi vn
nd . a r e ei d tong r ngs r
. o nnone r ga di Dodd- a si pa t
e r ng
Fr nk' m c
on Hun e W ie.Fore mpl on J 24,2011 M r J l Gi nnone s nta e- lt M r
tr s
xn e, une
, . om ovn
e n mai o .
M a tn a M r J erwih clara c i er c me tonsr ar ngt i s he
ri nd . ag
t e nd onc s e om nda i eg di her c me:

Hu trWies o l so a cpign w y rh s od r o o b fr co eo
ne s h ud tp ce tn e uc ae res n r eoe ls f
b ie so ( rd ys J l 1 ,2 1 ltl kt eo d a ea an tHu trW ie
usn s n F i a l uy 5 01 . h n h d s r g is ne s
beng a e t s c s uly def nd a CFTC e or eme a ton atac ng is
i bl o uc es f l
e
nf c nt c i
t ki t

c re t t do d igb sn s u de Se to s4 a a d4()o teCE Ac.
u rn meho f on u ie s n r cin () n b f h
t
2. Yo s d c i r soppi ac ptnc of ne pur s or s now and
u houl onsde t ng ce a e
w
cha e der

gi ng yourcuso r notc t tt wilhave t t (i) lqui t t r
vi
tmes ie ha hey l
o o sc i dae hei
exitng posto be or Jul 1 oryou willqui t t rpostonson t t
si
ii ns f e y 5
l i dae hei
ii
ha
dae. si t s f a m os c e vai a oac
t Thi s he a e nd
t ons r tve ppr h.
3. I t ale nai ,you may wih t pe tyo c t r t m a n ai t i
n he tr tve
s o nni ur usome s o i t n he r
c r ntpostonsuntlt y c
ure
ii
i he hoos t lqui t t m .
e o i da e he Howe ,Icn
ver
nnotatt s
hi
tme pr c whehert CFTC wilc i rt ta br ac oft CE Ac or
i
edit
t he
l onsde ha
e h
he
t
not
.

4. I Ed wa i f ts c s uli getng Stnda d Bank t a e t pr de you
f
s n ac uc es f n ti
a r
o gr e o ovi
wih t fna i you r quie t e f ts tt e de i r wihi 28 da of
t he i nc ng
e r o fec ubsiut d lve y t n
ys
s e,we s d r s t g tt puti o pl c be or J y 1 Eve t n,t r
al
houl u h o e hat
nt a e f e ul 8. n he he e

18

i silt quesi ofwhe he t CFTC woul pe mi you t m ant i you
s tl he
ton
t r he
d r t
o i an
r
c r ntc t r postonsafe J y 1 b a e t wilnotha f t ed
ure usome
ii
tr ul 5 ec us hey l
ve eaur
delve y wihi t r quie 28 da .
i r t n he e r d
ys

E- i fo Gi v n o e t J g r a d M at (u 2 ,2 1 (
mal r m o n n n o a e n
ri J ne 4 01 ) CFTC Ex.1 7 a 3 .M r
n
8 t) .
Gi nnone' a yssi ude hi be ift t
ovn
s nal i ncl d s le ha :

gl CF pln t b igas re o e f re n a to sa e ry a ( d yl
' he TC a s o rn eis f n o c me t cin s a l s Mon a r
l

Jl 1 a an t veyc mp n i t peiu measid sy whc c niu st
uy 8 g is e r o a y n he rco s tl n ut ih o tn e o

ofe pr c o me a sf s l o a ma gi d orfna e basson t tdae unl s
f r e i us t l or ae n
r ne
i nc d l
ha t es
de i r i ma a l as o a s tt e ba i t a de ior whih is s t
lve y s de, t e t n ubsiut d s s o
post y
c s ue he
equi l nt of a non- gota e wa e
va e
n
ne ibl
r hous r cept t t uli t c t e ,
e e i o he tma e usom r
wihi 28 da oft s e.
t n
ys he al
1 a 2.Thus M r Gi vr
d. t
, . o mnone r s d t r d fag r ga di t i pa Dodd- a
aie he e l e r ng he m d
Fr nk
woul ha on Hun e W ie.
d ve
t r s Unde t Dodd- a mne m e st t Ac ,
r he
Fr nk
nd nt o he t Hunt W ie
er s

wo l beb o g tu d rt CFTC' j rs ito a wo l rs a s tb o g tb te
ud r u h n e he
S u id cin nd ud ik ui r u h y h
CFTC.Hunt W iewa notacualy dei rng m eal t r t i c t e sa i wa not
er s s
t l lvei
t s o e al usom r nd t s
pr di no negotabl war hous r cept t r ai c t r wihi t nt e g
ovi ng ni e
e
e e i s o et l usome s t n we y- i ht
da ,a Dodd- a r r M r Gi mnone' r ommendai ns we e une voc l
ys s
Fr nk equied. . ovr
s ec
to
r
qui a :
HuntrW ieha t s down orc nge isope atonsby J y 1 2011 i notbef r i
e
s d o hut
ha
t
ri
ul 5,
,f
o e,n
or rt a d labiiy.
de o voi i lt
Alhoug M r Gi nnone' r co mendai ns we e una g us M r M a tn s nta
t h . ova
se m
to
r
mbi uo , . ri e n
e ma lt ts
- i ha ame da as ng,t m Ic r ctt tJ hn i es e i ly s esi t twe c os t
y ki W
ore ha o s s ntal ugg tng ha
l e he

c
ompa 'I at1 M r J gersr s ns c nfr e he a M r M a tn unde sood Hun e W ie
ny?' d. . . a ' e po e o im d
nd . ri
rt
tr s
c uns ' l ga advie by sa i lf t i my opi on, a t pur e of t wor t c e
o els e l
c
ttng, thas n
ni
s he
v yor
he
s as
s na i wa es e i ly hi opi on.' f M r M a tn and M r J ge unde sood M r
ce ro, s s nta l s
ni ' #. . ri
. a r
rt
.

Giv n o e ssae n st t h Do d F a k e f re n a t o iyj o adie Hu trW ies
o a n n ' ttme t ha t e d - r n n o c me t u h rt e p r z d ne s '
busne saci te . n f t t y r cog z d t y coul no l e c i t i s he
i s tvii s I ac , he e nie he
d ong r ontnue her c me.

19

Ye,whe M r Gi vannone s nta e- alt M r M a tn a M r Ja ra
t
n . o
e n m i o . ri nd . ge boutt e wee
hr e
ks
ltr s ki t d t r i whe he t ha i plm e ed a of hi r c me tons he
ae ee ng o e e m ne
t r hey d m e nt ny
s e om ndai ,

lnred t tvey ltl had c nged.Se E- i fom Gi nno t M atn (u1 1 2011
e n ha r ite
ha
e mal r
ovn ne o ri J y 2, )

( TC Ex.1 9a 5 . J y 1 , 1 a o p s dt h e ig Mr Giv nn n ' wanng , .
CF
6 t ) On ul 2 201 , s p o e o e dn . o a o es r i s Mr
M a tn sa e t the a M r J ge woul r f s t cos down t c
ri tt d ha
nd . a r
d eue o l e
he ompa i t y we e una e
ny f he
r
bl
t r c a de wih a Unied Stt s de ior t r c ve a t ldei r ofm e as wihi t
o ea h
al t
t
a e post y o e ei cua lve y
t l t n he
t nt eghtda pe i pur ua t Dodd- n k.I r pons t M r M a tn' sa e tt tt y
we y- i
y rod s nt o
Fr n n es e o . ri s t t men ha he

we ewilng t vi a et l w i t d ofs ti HuntrW ie do M r Gi nnone wa e
r li o olt he a nsea
hu tng
e s wn, . ova
s ven
mor a
e dama a
nt bouthi a yss ç fyo c nnotbes r t you c n ge dei r i plcewihi
s nal i: i u a
l
u e hat
a t lve y n a
tn
t 28 day pe i ie.by Augus 1 yo s d s down untlyou ar You co d peronaly
he
rod, . ,
t 5, u houl hut
i
e.
ul
s l
be g ly o af l 'f
uit f eonyl' J.
Tha s m e da a tr r viwi M r Gi
t a
y, fe e e ng
. ovannone' wa ni a
s r ngs bout t potntal f
he e i or
c i nalc ge be ng br
rmi har s i
oughta i tt m f t i a tons M r J er s ntan e m a lt M r
gans he or he r c i , . ag e
- i o .

M a tn sa i t ton Frda J y,1 2011,t decde i we s down t entr co pa or
ri ttng ha
i y, ul 5,
f
we i f
hut
he ie m ny,

a J hng o a n n )s y l û rs i(j'E- i fo J g rt Ma t (u1 1 2 1 (
s o Giv n o e a s, we ik t.' mal r m a e o ri J y 2, 01 ) CFTC
)
'
n
Ex.1 at1 .Mr J e wa ke nl a r oft c ce a lbl t t m a t cons nc
89 ) . ag r s e y wae he hoi s vaia e o he nd he eque es
of c i i t ope a e.Peha e n mor a r of t c e nc s was M r M ari who
ontnu ng o r t
r ps ve
e wa e
he ons que e
. tn,

wr t i a emal oM r J g r ç i a lc wewil a ea j i igc ls'1 .
oe n n - it . a e ,ç t ny u k
W h
lh v do nn el. d
'
( )Mr Ca e a dMr Gr s ma 'Ad ie
2 . ry n . o s n s vc
M r Gi nno wa not aone i a sng M r J ge a M r M a tn a
. ova ne s
l
n dvi i
. a r nd
. ri bout Hunt
er
W ie' l ga i s s.M r Ca e a M r Gr s
s s e l s ue
. r y nd . os man' dic sonsw ih M r J ge and M r M a tn
s s us i
t
.a r
. ri

a s pr de ampl r as why Hunt r W ie s ope a i a busne s pln woul be il l
lo ovi d
e e ons
e
s'
r tons nd
i s a
d
lega
onc Dodd- a c
e
Fr nk ame it e f t
n o fec .

20

Fore
xnmpl M r Ca e t tfe t tt r t begi ng ofhi r pr s a i whih
e, . r y esiid ha owa ds he
nni
s e e entton, c
be n i M a 2011 hei or d M r M a tn a M r Ja rt tHunt rW ie' a ee t wih
ga n y
, nf me
. ri nd . ge ha
e
s s gr men s t
t de lr we e toubl o e a i onsse wih Huntr W ie' acualpr c i s Se Ca e
he ae s r r es m nd nc itnt t
e
s s t
a tce . e r y
De
po. a 1
t 70: 1 1 The agr e e s whi h i uded t tadi ag e
4- 7.
e m nt,
c ncl
he r ng r ement, t l n
s he oa
ag ee nt ,and a i sr tve s r c a e m e s di no des rbe a ur t y t wa Hu e
r me s
dm nita i e vie gr e nt, d t c i cc ael he y nt r
W ieta a td isbusnes ,butHunt rW iene rhel sc i d t us t m a s r t m
s r ns ce t
i s
e s ve t es ontnue o e he nd ha e he
wih t de lr ,
t he ae s who,i t n,pr ded t m t t r t i c t e s 1 a 1 24.
n ur ovi he o he e a l usom r . d. t 8-

M r Ca ey advie M r M a tn t t he di not unde sa why M r M a tn be ive
. r
s d . ri ha
d
rt nd
. ri le d
Hunt W ie ha sor d me a swih e h oft Suppler ç ven wha s e e t be t bo
er s d t e
t l t ac
he
i si
gi
t em d o
he ok

e ty o iainsa o po e t s mehig (e c u dh l i Eilh n . f . t1 : 1 1 l a
nr bl to s p s d o o t n h ) o l od n hs a d' # a 42 1 - 7.n n
g
'
e mai t M r J er on Aug t3,2011 M r Ca e ad s hi a
- l o . ag ,
us
, . r y vied m boutadicus i M r Car y ha
s son . e d

ha wi M r Ma t a noe t tç etn te n ts fo t e ( u p ir)fo wh m ( .
d t . ri nd td ha ç tig h o e r m h S p le s r m o Mr
h
n
g

J g r p rh s l )t a te e ( s mea b hn tersls' u d c nim t a t y a tal
a e) u c a e d h t h r wa q tl e id h i ae 'wo l o fr h t he cu ly
ha me alsor d f HuntrW ie' r t lcusome s
d t t e or
e s s eai t r .
l t a ofobt i ng l e ' a M r Car a vied,M r M a tn a M r J ge ha DDSC
nse d
ani l s' s . ey d s
not
. ri nd . a r d

is Poston Rec iiton fr t rti c t r t t onl S nfr e ...t t t
sue ii
onclai oms o eal usomes ha y ç imldl
co
ha he

p o u t e sld a d ta o te b o s o y u ColtrlMa a e ,Ht e W ie Sevc s
r d cs xite ) n h t n h o k f o r l ea n g r mtr s r ie ,
a
LLC,y u cin ,(ili i e tfe a teb nei ilo e o t a c laea. T a fe No ie ,
o r l t sc s d niid s h e fca wn r f h t oltrl' r n r tc s
e
'
Hunt r W ie N e l te sJ y 20,2011 CFTC Ex.11 The DDSC' Poston Rec ii i
e
s
wset r ul
,
8.
S ii
onc laton
f msto e M r Car y.He advie çtwoul be agood i t ti you'e goi t c im
or r ubld . e
s d,t
i
d
dea ha f
r
ng o onfr
t ts e a oun ofphysc lm ea oc ur t ts one i doi m or t n wrtng t ton a
ha om m t
i a t l c s ha ome
s ng
e ha
ii ha
pic ofpa a hass
ee
per nd
ome basson whi h t m a t sae e .'Ca ey Depo.at1 1 21.
i
c o ke he t tm nt' r
52:2-

M r Car quesi d t Poston Re onciiton notce' lnguage a M r J ge a M r
. ey
tone he
ii
c la i
i s a
nd . a r nd .

21

M a tn' de ii t ha DDSC i s t m i lg oft f tt tnet rDDSC,nora ne
ri s c son o ve
s ue he n i ht he ac ha ihe
nyo
e s f t tmater ha verfe t e se e oft m eal.
le or ha
t , d iid he xitnc
he t s

Hun e W ie sot rc e ,M r Gr s a unde sood t tHunt rW i e s s he e di
t r s ' he ouns l , osm n,
rt
ha
e s' c m d
no r ul i Hunt rW ie a t ly ha ng physc i nt r a headvie M r M a tn a M r
t es t n
e s cua l vi
ial nve o y nd
s d . ri nd .
J ge a s h;i washi bele t tt r wasE m eala t e oft r i
a r s uc t
s i f ha he e
G
no t t he nd he a nbow.'Ta c l
' ped al

b t e Gr sma a d Ga dn (uy21 2 1a 3:4p. )(
ewe n o s n n u io J l , 01 t 2 m. CFTC Ex. 25 . nJ l 2 1 Mr
2 ) l u y 01 , .
Gr s
os man sae t he had e ai d t M r M a tn t tt m eal di notexit Hunt rW ie
t td hat
xpl ne o . ri ha he t s d
s;
e s
me el ha ofs thedgi 1 24
r y d fe
ng. d.
l r r t t Tr nser of Co modiy f m Hunt r W ie s nt out t t r t i
n ega ds o he a f
m
t or
e
s e
o he e al
c t r ,M r Gr s a e ane t tt f r éa o e c l w ha i beng hel how a
usome s . os m n xpl i d ha he o m i ys ut xa ty
l
ts i
d,
nd

f rwh m. tn wh r systa HW a d a y o HW ' c so rd ae si (ho g t y ma be
o o I o ee a h t
n n f
s u t me e lr s t u h he y )
hol ng a physca pr tt ti r quied t mee oblga i t HW ' de e cusome sor
di ny
i l oduc ha s e r o
t i tons o
s alr t r

u tmaey t e rti c so r' E- i fo Gr sma t M at (u1 2 2 1 ( TC Ex.
li tl h eal u tme . mal r m o s n o ri J y 4, 01 ) CF
'
n
238) Mr Gr s n goe ont adviehi ci s,
. . osma
s o s s lent

El e ei a mak d d fe e c b t e e pann h w Hu trW ieta e te
'h r s
I
r e ifr n e ewe n x liig o
ne s rd s h
de i tve a physc lma ke st p o de a as ur d a lt t mee a a a l
rvai nd
ia r t o r vi n s e biiy o
t ny nd l
2 M r.Gr s a saci s es hi r ewa mor aki t an a tve pa tc pa i t fa
4
os m n' tons ugg t s ol s e n o
ci
rii nt n he r ud
r t rt n dii e esed c ms l Fore m pl ,a not pr ousy,Syl a W ilmnst sii d t t
ahe ha snt r t ot e .
xa e s ed evi l
vi li
e tfe ha
M r Gr s
. os man t d he Ht e W ief ol e y'ha m eal a t he woul c im t f c
ol r mtr s ç
abs utl ' d t s nd hat
d onfr hat a t
t hercusome s Howeve ,i a r c ded tl phoneconve s ton,het d Fr nk Ga no t r
o
t r.
r n e or
ee
rai
ol a
udi he e

ween meas Th n, etl med rn t ep ei n r ij ncinhe rn t t n e W ie
r o tl. e h od
u ig h rlmi ay n u to ai g ha Hu tr s

pos e s m e as Furhe m or ,t oughoutt Elven h Cic i or lar ume s when t pa l
s s ed t l. t r e hr
he e t r u t a g nt ,
he ne
a ke M r Gr s a t e a n whe ei c d fnd e de on t r cor t Hunt W ie
s d . os m n o xpli
r t oul i vi nce he e d hat
er s
pos e s me a s hecon i lys fe postonsandr fai d fom ans i die tque to .
s s ed t l ,
tnual hitd ii
e r ne r
werng r c
si ns
I o s h i t nce, udgeSt e M a c as M r Gr s a ç dt y eve ha i t i
n ne uc nsa
J
anly r us ked . os m n, t he
Di
r ve n her
hotltl ha ,pos es i ofasngl pi c ofm e a ?'Or lAr e a 8: Hunt rW ie,
ite nds s son
i e ee
t l ' a gum nt t 09,
e s

201 W L 1 4435( t Ci. 4) M r Gr s a we e yes butwentont cai o yt t
4
42
11h r 201 . . osman ns r d ,
o l m nl ha
Hun e W iewoul pr de me a st a1 r t i c t e swho r quese t m . n ot r
tr s
d ovi
t l o 1 e a l usom r
e t d he l he
e ha ,het d t El ve h Cic tt tt agr e e sbe we n Hunt rW ieandt
xc nges
ol he e nt r ui ha he e m nt t e
e s
he
Su ir pum ore y ga Hunt rW iepos e son,e n whe heha pr vi l sa e
pple s
tdl ve
e s
s s i ve
n
d e ousy t td
ot r s Hi c
he wie. s onduc i t sma trme iss r tny by t Fl i Ba a r gult y a hort
t n hi te rt c u i
he orda r nd e aor ut iy.
22

c t m e ta cai sno ma t whe e apa tc a pr i a i ti m a ke
uso r r de l m
ter r
riul r ecous nd ndusral r t
m a te a on t ot rha pr vi ng a s a est yourc t e de e '
y r nd nd, he he nd o di s ur nc o
usom r alrs
r t lclent t you ar hol ng i i a i nt y'whi may be tken t
eai i s hat
e di physc l nve or
ch
a
o
mea s ii i ve or
n pecfc n nt y.
1 a 2.M ont l e ,M r Gr s
d. t
hs atr . os man a knowldge t tsatng Hunt W ie ha m eal so e
c
e d ha t i
er s d t s t r d

o isb h l wo l l l t(e a u tuh, e e to h M r M a t s u h t ma e s c a
n t e af ud t mos b ) n n r t ' v n h ug
a
'
. ri o g t o k u h
n
d caain. p d CalBewe n Gr s ma a d Ga io ( v. , 01 a 1 :5 am. ( TC
e lrto Ta e l t e o s n n udn No 21 2 1 t 14 . ) CF
Ex. 27 .
2 )
Uli ael M r M a tn a M r J ge c e t ino e M r Gi vn
tm t y, . ri nd . a r hos o g r
. o nnone' wn i ,a
s m ngs s
welasM r Ca e a M r Gr s ns a cer r ng Dodd- ank' r quie t a Hun e
l
. r y nd . os ma ' dvi ega di
Fr s e r men s nd
tr

W ie' m il a ng saement and de p i om isons Hunt rW ie c i d ope a i a tr
s s se di t t
s
ce tve
si .
e s ontnue
r tng fe
J y 1 2011.
ul 6,

E.Pro Kno e geo heSc me' Re lt r I iai n
ir wld ft he s gu aoy mplc to s
( )NotHi FistRode -Mr Mari 'Cons ntOr r
1
s r
o . tn s
e de
AsM r Gi va ne waspr di l la c t M r M a tn a M r J rr r ng
. o nno
ovi ng ega dvi e o , ri nd . age ega di
t Dodd- a is st te se a Hunt rW ie M r M a tn s m e t bele t thi t ryhe
Fr nk s ue ha xit d t
e s , . ri ee d o i ve ha s hit
;veyea hit r i t pr cousm e asi ty ma hi be trs t d t a l zeDodd- a s
r so y n he e i
t l ndusr
de m te uie o na y
Fr nk'
i plc to .l r pons t M r Gi vn
m i ai ns n es e o . o nnone' e- las ng M r J ra M r M a tn whehe
s mai ki
. age nd . ri
t r
t y ha i e nt d t r c me tons he ha m a r ga di Hunt W ie' ope a i ,
he d mpl me e he e om nda i
d de e r ng
er s s r tons
M r M a tn sa e çBe n doi t ssnc 1
. ri tt d, ç e
ng hi i e 977.Thi i notmy fr tr o. E- a lfom M ari
ss
ls ode ' m i r
'
tn

t Givmn n (u y 1 , 01 )( TC Ex. 6 a 1 .
o o r o e J 1 3 2 1 CF
19 t )
l ed,i w a not M r M a tn wa a exe utve a Uni twhe due t t a tons of
nde t s . . ri
s n c i t me
n,
o he c i

Mr Ma tn a ot rr prs nttves t Fedea Trde Commison (TTC' comme e a
. ri nd he e e e ai , he
rl a
si ç '
)
nc d n
aci i t Unie St t DititCour,Ce r lDititofCalf i a i tUni tCr di
ton n he
td aes src
t nta src
iom a, gans
me e t
Com orto Uni e Tr ng Cop or ton, f i vi def nda s i udi M r M a tn.
ai n, m t adi
a i and our ndi dual e nt , ncl ng . ri

23

Se Co l,CFTC Ex.1 8 FT v Unme Cr dtCop. No.9 - 7 9 ( Ca . Se t 2 ,
e mp .
5 , C . i t ei r ,
2 5 5 CD l, p . 3
1 .l Uni t M r Ma tn a t ohe dee nt si ae t t e r ofa Consnt
992) n me, . ri nd wo t r fnda s tpultd o he nty
e
Or r Se Cons tOr rast De e nt E.Ket Owe ,Ed M a tn,a Ed M ye s CFTC
de . e
en de
o f nda s
ih
ns
ri nd
r,

Ex. 5 ,Unme, . 2 5 5 ( Ca .De . 0, 9 4 . eCo s n Or e e j i e M r M at
1 9 i tNo 9 - 7 9 CD 1, c 2 1 9 ) Th n e t d r no n d . ri
n
fo : r viigs b tn il sitn et a yc mmo iisrtie wh m (ekn ws i fiigt
r m f o dn u sa ta a ssa c o n o dte ealr o h o ) s aln o
p
ds ls a mae ilfc,ncu i l b tn tl tdt ()t etu a u to c mmiso sa d
ico e ny tra a t i ldng s u o i e o , h r e mo n f o sin n
)
mi
f s' I a 6.The Cons ntOr e pem a n l r sr i M r M a tn fom mir r entng t
ee . d. t
'
e
d r r ne ty e taned . ri r
sep es i he
S gr of rs as oc aed wih a i sm e i commodii ;t lkei
i ee
de
ik s it
t n nve t nt n
tes he i lhood t ta c um e
ha
ons r

woul e n a pr i on a i t nt' a t a o o f e or a ot r m ae i l f ct
d m'
oft
n nvesme '; nd he m unt f e s
ny he
t ra a

o j ciey maeilt a c n u rs d cso t i e ti a c mmo iy o oh r iv sme t
be tv l tra o o s me ' e iin o nv s n o dt r te n e t n
ofe i I at5.M r M a tn r ceve an a e d t a deby t Co en Or r whih de al d
f rng. d.
. ri e i d d gr e o bi
he ns t de , c t ie

wh t ul c n ttt fa d a de pan dwh th wa pema e t e j i e fo d ig.
a wo d o si e ru n x lie a e s r n nl no n d r m on
u
y
Her ,M r M ari a M r J ge de l d t HuntrW ie s he t i ult t
e . tn nd . a r ve ope he
e
s c me o ns ae hem fom
r
rt l c t m e s c am s.M r M a tn a M r J ge s me t bei ve t t i t y wer not
eai uso r ' l i
. ri nd . a r ee d o le ha f he
e
die l s i tng cle t ,eve a t y wer c mitng fa t c d notbe la e f t i
r cty olcii
ins
n s he
e om ti r ud, hey oul
ibl or her
l s s.
os e They i e
ntnded t hi be nd acoa ofa
o de hi
l k
nonymiy ast y we epuli t srngs
t
he
r
lng he ti .

( Re at yPr emst I iatdHuntrWie
2) gul or obl hat mplc e
e s
Asdef o M r M a tn' pe s le renc wih r gult y age esr r ng fa i
i rm
. ri s rona xpe i e t e a or
nci ega di r ud n
pr c o me al ta a tons M r M a tn a M r J e we em a a r oft is s wih t
e i us t s r ns c i , . ri nd . ag r r
de wa e he s ue t he
Hunt W ie s he e t oug lws t t tdie l orby i i ai r l t d t Hunt W ie'
er s c m hr h a uis ha r cty,
mplc ton, e a e o
er s s
a tonsi de e fa
c i n alr r ud.

24

()
a

Ari eReg r nc Comm odiisFr ud Ca esi Fl i
tcl
a di
te a
s n orda

Mr M at a dM r J g rweema ea r o t eCF Se p n e j rs ito a e ry
. ri n . a e r d wa e f h TC' x a d d u idcin s al
n
a M arh 2011 On M a c 23,2011,ChrsJ i a a t ney,f wa de t M r M a tn a M r
s
c
.
rh
i a n, n tor
or r d o . ri nd .
J ge a ari e t tdicus e t ma vitms who wer t en a
a r n tcl ha s s d he ny ci
e ak dvant ofby uns r pul
age
c u ous

b o e sa d d aes J n Bu sen Li l Re lto ,Loso s Ca Le v God I v so so
r k r n e lr. o rti, t e gua in t fRik n a e l n e tr n
t
Sh k Gr n Su S n ie,Mac 1 , 1 ,
a y ou d, n e tn l r h 9 20 1 CFTC Ex.1 ( e en fe ,i il Re lto ' .
68 h r ia tr ç t e guai n'
ft
j
Alhough muc oft a tc e f us d on t f c t tpr c ousme a busnes esa ta a tons
t
h he ril oc e
he a t ha e i
t l i s nd r ns c i
c
onduc e i Fl i ha gone unr gult d,t a hora s d r de s oft pe ng f de a
t d n orda ve
e a e he ut
dvie ea r
he ndi e r l
r gult r c nges as ocit wih Dodd- a I e atl f l ng t dic son of t
e a o y ha
s aed t
Fr nk. mm di e y olowi he s us i
he
c i i lhit y o t i vi l who s i ie r t i c t e s i Hunt rW i e s s heme,s e
rm na sor f wo ndi dua s
olct d e al usom r n
e
s' c
c
M a tn De Fe 26, 4, hea tcl e aned:
ri po. b. 201 t ri e xpli
M or f de alove s g oft gol tr a a st beon t horzo whe a ne
ee r
r i ht he d l ms ppe r o
he i n
n
w
1w t ke e f c i J y.Com pa est ts l pr ci m eal i l r d dea s
a a s f e t n ul
ni ha e l e ous t s n eve age
l
wilha t de i rt g d wihi 28 da t t c t m e or a l ton whe e
l ve o lve he ol t n
ys o he us o r
ocai
r
t m eal m' ea iy a e sbl s t buy c n ve iy t t acualy exit l
he t s e sl cc s i e o he er a rf hat hey t l
s. f
t gol in' physc l de i r d, t ta a ton wil f l unde CFTC
he
d s t
ialy lve e he r ns c i
l al
r

j rs ito , n c mp n e a d terb o e swiln e t bef d rly l e s dt
u idcin a d o a is n h i r k r l e d o e eal i n e o
e
wor i c
k n omm o te .
dii s
fite Re aton,a 5.M r M a tn a M r a r r c i d t s e a ton of Dod Fr l s
tl gul i
t
. ri nd .J ge e e ve hi xplna i
d- ar
k'
i i a i m or t n f m ont be or isi e e a i
mplc tons e ha our
hs f e t mplm ntton.

()
b

Th CF SAcinAg i t2 / 0
e TC' to ans 02

l Aprl 2011 t CFTC fld an a ton ag ns 20/ Tr di Company,I . 20/
n
i
, he
ie
ci
ai t 20 a ng
nc, 20

PrcousM eal,l ,a isofies(ole tvel ç 20')i t Unied Stt DititCour
ei
t s nc. nd t fc r c lci y, Q0/ ' n he t aes src
t
f t Ce r lDititofCalf i See 20 20 Co pl CFTC Ex.1 CFFC v.20/ No.11
or he nta src
iom a.
/
m .
82,
20,
-

000643 ( Ca.Apr 26,2011 .The Compli al d t tfom J nuay 2006 t ough t
CD l .
)
ant lege ha r a r
hr
he
flng of t a ton, i Aprl of 201 20 20 fha c t a defa d c t m e s a
ii
he c i
n
i
1, / l d heaed nd
r ude uso r nd

25

r
pr pe i c t e s by l ng a
os ctve usom r
yi bout t lke i
he i lhood of pr s i a c eai t nea
ottng, nd onc lng he

c ran y o s bsa ta lse ,wh n iv si wi ' 2 / 0 1 a 2 ! 1 Th 2 / 0 Co lit
e tit f u tnil o s s e n e t
ng t ' 0 2 . d. t
h
. e 02 mpan
s tt hol 20 20 la e f defa ngr t i c t e sou ofa l s $4 milon i l s .
ough o d / i bl or r udi e al usom r t t ea t
li n os es
M r Gi nnone me i d t 20 20 Compl i i a e mai t M r M a tn a M r
. ova
ntone he /
ant n n - l o . ri nd .
J ge on M a 3,2011,c am i t ti wasçi
a r
y
l i ng ha t
tmper tve't tt s a wih hi .Se E- a l
a i ' ha hey pe k t m
e m i

fo Giv n net M a t a d J g r( y 3 2 1 (
rm o n no o ri n a e Ma , 01 ) CFTC 1 2 a 1.0n M a 1 ,2 1 h
n
8 t)
y 3 01 , e
f wa de t 20 20 Compl i t M r M a tn a M r J ge a dieced t t t y r ad
or r d he /
ant o . ri nd . a r nd r t ha he e
pa a a
r gr phs 5 a 60 of t Compli i pari a .Pa a a 56 r ads i pe tne pa t
6 nd
he
ant n tculr r gr ph
e s n ri nt r,
i he a c t
é n usomers nds 20/ M e a s f
w
e
20 t l unds t p c s physc m e a s 20/ M eal wie
o ur ha e
ial t l , 20 t s r s

tos f n st at r p ry ( ne W ieqa u e te t e trit lv rg dta a to si
h e u d o hid a t, Hu tr s , nd s s h m o ne no e ea e rns cin n
t en o 2 /0M eas'202 Co .CFTC Ex.1 2 a 21!5 . g a h 6 sae ,
h mne f 02 tl. / 0 mpl,
'
8 t
6 Pra rp 0 tts
Addii nal 20 20 M e a s m ir pr s nt ho c t m e f
to ly, /
t l s e e e s w uso r unds a e beng us d.
r i
e
Spe ii a l 20/ M e a s m ir p e e s t t i pur has physca m e a s t t
c fc ly, 20 t l s e r s nt ha t c es
i l t l , ha
tteha pa s t t c t e ,a t tt me a i sor d i a s cur de ior
il s s ed o he usom r nd ha he t l s t e n e e post y.

Snc 2 /0M easo l ha a a c u t t ( mtrW ie i wh c i e tr it
i e 02 tl ny s n c o n wi Ht e s ) n ih t n es no
h
lve a
e r ged ta a tons i is own na
r ns c i
n t
me, not t nnme of t c t m e , t
he
he uso r he
c t r ha no rg t an me a s a tte t a me al t mi t be
usome s
i ht o y t l nd il o ny t s hat gh
p c s d doesnotpa st t cusom e .
ur ha e
s o he t r'
'

1 a 2 !6
d. t 2 ( 0.
M r Ca e t sii d t t Huntr W ie i ta l r t i d hi and hi f m e lw fr ,
. r y e tfe ha
e
s nii ly e ane m
s or r a im
Dewe & Le euf i M a of2011 be us oft 20 20 ac i Se Ca ey Depo. a 1 7- 2.
y
Bo , n y
ca e
he /
ton. e r
, t 9: 1
HuntrW ie sconc r r ga di t i iato oft 20 20 a ton s emed t i r a e e n
e
s'
e ns e r ng he mplc i ns he / c i e
o nc e s ve

f t ra trt cour- ppoi ed Re e ve i t 20 20 m at rfld a Re twih t ti c t
urhe fe he
ta nt
c i r n he /
te ie
por t he ral our.
The Re tsae t tafe i tgai and i e v e ng r lva i vi l , wa not% bl
por t td ha tr nvesi tng
nt r i wi ee nt ndi dua s he s
t e
a

t o ti a d e s n t ee i n et v rf tee se e o es i , a d sfke pngoft
o b an n x mie h vde c o e iy h xitnc , wn rh pg n ae e i
)
he
p ecousme al pu c s a hed i t c t e ' a ount . f a 27: 8- s e alo E- i
r i
t s r ha ed nd l n he usom rs cc s' #. t 1 22; e s ma l
'

26

fo Ma t t Cae ( y 23 2 1 ( TC Ex.1 3 a 1 (1 heRe ev r a trt rewe ks
r m ri o ry Ma , 01 ) CF
n
8 t ) $T)
(
c ie , fe he e
oftyi hasbee una et fnde denc t pr te ss' .
r ng,
n bl o i vi e hat oduc xit.)
'
Upo l r i oft Re ei r sfndi ,M r J gers nta e- a lt M r M a tn,M r
n ea nng he c ve ' i ngs . a
e n m i o . ri
.
Car y,a M r Gr s a r lyi hi c er f Hunt rW ie' f t e.M r J rwr e,ll s
e nd . os m n ea ng s onc n or
e
s s u ur
. age ot t-hi

i ral c u h n n wsr wh c i a g rn o ma ylves Tha wo l s e t i dc t t a t e
s e ly r s i g e g ih s n eig n n e l. t ud e m o n iae h t h
)
n x s o t d o i wi ( ne W ie i t e i e dd b le et eei n p o u t'1
e t h e o r p s t Hu tr s ,t h y nd e o eiv h r s o r d c. d.
h
q
'
()
c

Flrd Ofieo Fia il c lto sAcin a an tMi a
o i a fc f n nca Re u ain' to c i s d s

A mon h a trt FTC fl t 20 20 Compl nt i lt J 2011,heFl i Ofi of
t fe he
ied he /
ai , n a e une
t
orda fce

Fi nca Reg ai ($
na il ulton $
FOFR' rque t doc nt fom Hu e W iei r ltont isc i nal
' e sed ume s r
)
ntr s n eai o t rmi
i si ton ofM i As etM a me ,a he HuntrW iedeaer M r Gr s a e aned
nve tga i
das s
nage nt not r
e s
l . . os m n xpl i
t taFOFR r pr s nttve 1 s Gr m niki'as d,t her i t depost r f c lt whe et
ha
e e e a i , % . o c y ke ç
M
'
W e s ht
io y a iiy
r he

p e iu mea i so e 'E- i fo Gr sma t M a t (u y5, 01 )( TC Ex. 4 a 1 .
rco s tl s t rd. mal r m o s n o ri J 1 2 1 CF
'
n
23 t )
Ac or ng t M r Gr s n, M s Gr
c di o . os ma
. omniki ha pos t t i
c
d
ed ha mpora quesi t hi on
tnt
ton o m

nume ous o a i .M r M a tn r ponde t M r Gr s a se m alt ts m e da wrtng,tl
r
cc sons . ri es
d o . os m n' - i ha a
y, ii $
be ive ourr s e t t q si n o whe e t m e a i sor d ne t be ca ef l t
le
e pons o he ue to f
r he t l s t e eds o
r uly hought
out' 1
, d.
'
F: Be tng t H ous
ti he
e

M r M a tn and M r Ja rb agge a
. ri
. ge r d boutowni t ca i c r lng t pr es ,a
ng he sno, ontoli he oc s nd
t a lt t ' a money no m at whe e t m a ke s s f . E- lfom J ge t Pa a
he biiy o ' ke
m
ter
r ht r t hit' mai r
'
a r o ndor

Pa g (u e 1 2 0 )(
n J n , 0 8 CFTC Ex.1 0 a 1 . y r c i d lg la v c a d wa ig rg r i g
8 t ) The e eve e a d ie n m n s e ad n
Hunt rW ie' Dodd- a vi a i a fa e cond t Ye st pum os uly de de t
e s s
Fr nk oltons nd r udulnt
uc . t hey
ef l ci d o
rs c i nala ci lla lt by c i ng Hunt r W ie' fa e t a il alo r tons
ik rmi
nd vi ibiiy
ontnui
e
s s r udul n nd leg pe a i .

27

Appr ma ey 3, r ai c t r l tove $5 milon bec e ofHun erW ie' s he
oxi t l 200 et l usome s os r 2 li
aus
t
s s c me.
Theho e c nnotwi whe i vi ai oft l t ga ei rgge
us a
n
n, n olton he aw, he m s i d.
I.
l

STATUTORY BACKGROUND

S ci n 7 2 o te Do d F n k Ac e p n e t e s o e o te CF Sj rs ito t
e to 4 f h d - r n t x a d d h c p f h TC' u idcin o
i udefna d co modiy ta a tonswih c um e s t r g antng t CFTC t powe
ncl i nce m
t r ns c i
t ons r , he eby r i he
he
r
a a hort t e ur t ta a tons i vi c modiis wer t be exe ut on an
nd ut iy o ns e hat r ns c i
nvol ng om
te
e o
c ed

e c a g a d s be tng s c ta s cin t t a t-ru p o ii n o t e Ac a d
x h n e n u j ci u h rn a to s o he nifa d r v so s f h
t n
Comm ison Reg a i .
si
ultons

Count Two o t Com pli a lges t t Hunt r W ie, M r a tn, a M r J ge
f he
a nt le
ha
e
s
.M ri nd
.a r

c mmitdfa d i vo ai no S ci 4 o t Co dt Ex ha g Ac . e to 4 ()2 of
o te ru n ilto f e t b f he mmo iy c n e t S ci n b a( )
on
t Ac sae ,i r e ntpar:
he t t ts n elva
t

( Unl ulac i
a) awf tons
l s lbeunl wf l
t hal
a u-

()
2

f ra y p ro , no i c r cin wi a y ode t ma e o tema i
o n es n i r n ome to t n r r o k , r h kng
h
of a c r c ofs l ofany c
, ny onta t ae
omm odiy f f ur de i r ors p, ha
t or ut e lve y, wa t t

i made ort bema ,f o o be fot orwih,anyot rpes ot
s
, o
de or r n hal l
t
he ron, her

t no o s b e t ot r lso ad sg ae c nr c mak t
ha n r u j c t he ue f e i n td o ta t r e(
A) t c a orderud o atemptt c atordefa t ot rpes n;
o he t fa r t
o he
r ud he he ro

(
B)

wilu l t ma o c us t b ma t teohe pes na y fle
l ly o ke r a e o e de o h t r ro n as
f
r por orsa e e torwilu l t e e orca e t be e e e f
e t tt m n
lf ly o nt r
us o
nt r d or

t eo h rp ro a yf lerc r ;(r
h t e e s n n as e o d o )
wiluly t de i o a tmptt dec i t ot rpe s by a mea
lf l o ceve r te
o eve he he r on
ny
ns
wha s ver i r r t any or r or con r t or t diposton or
toe
n ega d o
de
tac
he s ii
exe ton of a or r or conta , or i r ga d t a a t of age y
cu i
ny de
r ct
n e r o ny c
nc
pe f med,wih r s c t a o de or c r c f or i t c e of
ror
t e pe t o ny r r
onta t or , n he as

paaga ( , t t ohe pe s .
r rph 2)wih he t r ronl)

7U. C. 6 ( )2 .
S. j b a ()
28

CountThr alege t Hunt W ie, r M a tn,a M r J ge c mit d fa under
ee l s hat
er s M . ri nd . a r om te r ud

S cin 6c ()ofteAc a d Co sin Re u ain 1 0,.Se to 6c ( )a d Co sin
e t ()1 h t n mmiso g lto 8 1 cin ( )1 n mmiso
o
Re uain 1 0 1weeme n t S u me tt ( TC')e sig a t rt t p o i tfa d a d
g lto 8 . r a t o % g n he CF S xitn uho i o r hbi ru n
a
y
mani a i ' Pr bii on t Empl yme ,orAte ed Em pl e ,ofM a pul i a
pulton. ohi ton
'
he
o nt
t mpt
oym nt
ni atve nd

De ptveDevc a Pr bii o Prc M a pulton,76Fe Reg.41 41 (ul 1
ce i
ies nd ohi ton n ie ni ai
d.
398, 401 J y 4,

2 1. e to 6 c of h Ac i c dfe i 7U. C. 9() a dp o ie ,nrlv n p r:
01 ) S cin () t e t s o iid n S. j 1, n r vd s i ee a t a t
l s lbe t a f f a peron,die ty o i r cl t us ore pl or
t hal
mlw ul or ny s
r c l r ndie tys o e
m oy,
a tmpt t us or e oy, i c
te
o e
mpl n onne ton wih ... a c r c of s l of a
ci
t
onta t
ae
ny
c
omm odiy i i e sa e comme ce ...a ma pultve orde eptve devie or
t n nt r tt
r
ny ni a i
c i
c
con rva e i c tave i of s h r es a r gul to a t Comm ison
ti nc , n on r nton
uc ul nd e ai ns s he
si
s l pr
hal omul a e.
gt

7U. C. 9 1.
S. j ( )
Comm ison Reg a i 1 1, t t s i pe tne pa t
si
ulton 80. sa e , n ri nt r:

()I s albeu lwflf ra y pes n dr cl o i ie ty,i c r cin wih
a t h l na u o n ro , ie ty r ndrcl n ome to t
a ... c nta t of s e of a co modiy i i e sa e c me ce .. t
ny
o rc
al
ny m
t n nt rt t om r
.o
i e i ly orr c e sy:
nt ntona l
e kls l

(1 Us or e oy,orat
) e
mpl
temptt us orempl a ma pultve
o e
oy, ny ni ai
de ce s he e ora tfc t defa
vi , c m , riie o r ud;

( M a oratemptt ma a untu ormil di sae ntofa
2) ke, t
o ke, ny r e
sea ng ttme
m ae i lf to t omi t sa eam aera f c ne s a y i o de t
t ra ac r o
t o tt
t il a t ce s r n r r o

ma et sae n sma eno u tu o mila ig; o )
k he ttme t d t nr e r se dn ( r
( )En a e o atmp t e g g ,i a a t p a tc ,o c ure o
3 g g , r t t o n a e n ny c, rcie r o s f
e
busne s whi h o r t s or woul o r t a a faud or de ei
i s , c pe a e
d pe a e s r
c t
u
pon a pe s
ny r on.

17C. R.j 1 0..
F.
8 1
CountThiten oft Compl i cai t tHunt r W ie,M r M a tn,a M r J ger
re
he
ant l ms ha
e
s
. ri nd . a

ade a a te t vi a i o t Ac t twer c mitd by o he de e ant i t i t t
i d nd bet d he oltons f he t ha
e om te
t r f nd s n he nsan

matr S cin 1 ()of h Ac sae ,np ri n p r:
te . e to 3 a t e t tts i et t a t
ne

29

Any pe s n who c
ro
omm is or who wiluly ads a t , c
t,
lf l i , be s ouns l, c ma ,
e s om nds

i es orpr ur t c
nduc , oc es he ommisonof avi ai ofa oft pr sonsoft s
si l olton ny he ovii
hi
c pt r ora oft r l s r gul i ns oror r is d purua t t sc pt r
ha e , ny he u e , e ato ,
de s s ue
s nt o hi ha e ,
orwho a t i c
c s n ombi ton orc
na i
once twih a o hc pe s n i a s h vi a i n,
r t ny t r r o n ny uc olto
orwho wiluly c us s a a tt be done oro itd whih i diecl peror
lf l a e n c o
m te
c f r ty f med
oro it d by hi ora t rwoul bea vi ai oft pr sonsoft sc pt
m te
m
no he
d
ol ton he ovi i
hi ha er
o a of s h r e ,r ultons or o der ma be he d r s
r ny
uc uls eg ai ,
r s y
l e ponsbl f s h
i e or uc
vi ai a a prnc pa .
ol ton s i i l

7U. C. 1 ca .
S. j 3 ()
11
1.

LEGAL ANALYSI
S

lf e ( t i arme ilsauet tsr e tec ca p mo eo p o e tn t ein c n
d' Ac) s e d a tt t ha e v s h nzil u s f r tcig h n o e t
-h
i vi
ndi dual i sor who m a kno ltl a
nve t
y
w ite bout t i rca i s a c
he nti c e nd omplxii s of t
e te
he
c
omm o te mar - fom bei mil orde ei ' CFTC v.RJ Fi ge al z Co. 31 F.
dii s ket r
ng sed
c ved.
'
t r dt
z
, 0 3d

1 21 1 2 ( 1hCi. 0 ) c r. e e ,1 4S. . 0 ( 0 4 .
3 , 3 9 1 t r 20 2 , e fd nid 2 Ct 8 8 2 0 )

A.Se to 4 o heAc -Fr d
cin b ft t au
Co Two of t Compli a lge t t Hun e W ie,M r M a tn,and M r J ge
unt
he
ant le s ha
tr s
. ri
. a r
c mitd fa i vi a i of Sec in 4b of t Com modiy Exc nge Ac .A def nda i
om te r ud n olton
to
he
t
ha
t
e nt s

la e u rSecin 4b() oft Acti t CFTC de nsrt :( )t ta mirpr e ai
ibl nde to
a
he
f he
mo taes 1 ha
se esntton,

mila ig sae n , o o s in wa ma e ( ) wih sine ; a d ( ) t t t e
se dn ttme t r miso
s d; 2
t ce tr n 3 ha h
mir e e a i saemen ,orom iso wa m aera . d.a 1
sepr s nt ton, t t
t
s i n s t il 1 t 328.Fa l e t esa ih a one
iur o t bls ny
oft eee e si dipostve a wo d pr cudet CFTC' faud c a ms f
hes lm nt s s ii nd ul e l he
Sr
l i . #.

(1 M irpr s nt ins Mil ngSt e nt,orOmison
) se e e ato
seadi atme s
si s
l t f c ofsr evi nce s
n he a e
tong de
howi ot r s ,M r M a tn a M r J ge a gue t t
ng he wie . ri nd . a r r
ha
Huntr W ie di not ma mir e e a i ns o de ptve o isons i he he a
e
s
d
ke
sepr s ntto
r ce i
m si . t t r
W
mir pr e ai ha be n ma de ndson t o r l m e s e a t co mon undert ndi
se es nt ton s e
de pe
he ve a l s ag nd he m
sa ng

oft i or ton c yed. 1 (nt na quottons o te .Coursma fnd t twhe an
he nf mai onve ' d. i er l ai mitd)
'
t y i ha
n
i vi ua dr t a diti t s pr
ndi d l afs nd srbu e omotonal and tai ng ma e i l t t i r a d t r t l
i
r ni
t ra ha s elye o eai

30

c t r t t c am s ltl t no rs i c modii s ta a to .t i vi l ha a t d
usome s ha l i ite o
ik n om
te r ns ci ns he ndi dua s c e

fa e l Se Clyt Br e a Co.v CFI',794 F. 573,580- 1( 1h Ci.1 6) I
rudulnty. e a on ok r ge
. C
2d
8 1 t r 98 . n
a to c am i t ta r t i c t
ddii n, l i ng ha ea l usomerwilpr i fom c ran mmke tends wihouta sng
l oft r
e ti
tr , t
dvii

tec so ro t lk lh o o ta n to c i gi maeila dd c p ie I r J (9 2
h u t me f he ieio d f h t o c un n s tra n e e tv . n e CC, 1 9 -

1 9 Trn f rBid r (
9 4 a se n e) CCH)Co F t L. p. l 6, 0 a 415 6 (
mm. u . Re j2 08 t ,7 CFTC 1 4 ,afd s b
98 ) f ' u
n m. I c v CFF 6 F.d 1 5 ( 1h Ci. 9 5 .
u JCC n . . C, 3 3 5 7 1 t r 1 9 )
he e ous t l r ns c i
t
Her , Huntr W ie mir pr s nt f c s a
e
e
s
s e e e ed a t bout t pr ci m e as ta a tons i
ove s w .l pa tc a ,i die ty a i r c l ld t r t i c t e s t be ive m e a swe e
r a n riulr t r c l nd ndie ty e he e a l usom r o le
tl r
sor d on t r be l.Hunt r W ie pr r d and diti e doc e s i l ng a coun
t e
hei ha f
e
s epa e
srbut d
um nt , ncudi c
t

sae e t , Tr nse o Comm odii s f ms a ta co ima i notc s t t r ti
tt m n s a f r f
te or , nd r de nfr ton
i e , o he ea l
c t esc
usom r onfr i t e se e of t me a s t l ns a t pur has s.Hunt r W ie
m ng he xit nc
he t l , he oa , nd he c e
e
s
f ie t i or t pari t t metl i pur s d we e on a fna e ba i,i di notown
a ld o nf m he tes hat he a s t cha e
r
i nc d ss t d
t met s andt m eal,i t e wer a a a l we eno i t r t i c t m e s na e .
he al,
he t s f her
e ny t l, r t n he e al us o r ' m s
Evienc de o tai Huntr W ie' co
d e m nsr tng
e
s s nduc c e s c scal fom t Posto
t om s pe i ly r
he
ii n
Rec iiton sa e e W ila M e z r r e ve fom DDSC,whih satd, t-u e W ie
onc la i tt m nt lim
t ge ec i d r
c t e ll ntr s
l

1/
u r n ii s t D.
Se vc s LLC' ri)r c r sr te tta a of9/ 42011 yourc re tpostont)wih C.
r ie ,
S sc e o d el c h t s
Hopki M eal Di son a e'apur s oft ry ounc sofgol DDSC Poston Rec ii ton
ns t s vii r '
cha e hit
e
d.
ii
oncla i

St t nt ,CFTC Ex. Ac di y,a c ime by i or ai HuntrW i epr de M r
aemt s
44. cor ngl s onfr d nf m ton
e s ovi d, .
M ezge wa t owne oft gol l f c ,M r M ezge di notown any g d snc t gol di
t r s he
r he d, n a t . t r d
ol i e he d d
note s;ne t rHunt W ienorhi de e boughtgol i hi name.Ye,Hunt W iepr de
xit ihe
er s
s alr
dn s
t
er s ovi d
i or ai n t DDSC t tmil d M r M e zg r and ot r , ot nk t y had.
nf m to o
ha se
. t e,
he s t hi he

Ast t is ofomisons t El ve h Cicui,i R. Fiz r d,f un t tca mi
o he s ue
s i , he e nt r t n J tge al o d ha li ng
t c rant of r cevi huge pr s i t pr c ous m ea s i ty wiho i or i t
he e ti y
e i ng
oût n he e i
tl ndusr t ut nf m ng he

pr pe tve r t i c t e s t t$95 pe c ntoft tnn' ci nt e l tm one i t t pe of
os c i e a l usom r ha 1
r e
he s s le el os
y n he y s
i sment bei adve ts d' wasa om ison t twasfa e ta am at roflw.31 F.
nve t s ng
rie '
n
s i ha
r udul n s
te
a
0 3d
a 1
t 332. l t i t nt ma tr Huntr W ie tac d e r hi t t we on wih t r ti
n he nsa
te ,
e
s r ke ve yt ng ha
nt
t he ea l

c tmes ta s cin .As M r Ma o d c n ime n t i a u a ta e o a c u twa
uso r' r n a to s
. wj o o fr d, ohng bo t rd r c o n s
o fca u tli g tt Hu trW ie M a o d De . ( 1 - a 5 1 - 0 .Hune W iek p
fiil ni t o o n e s . wj o p, DE 91 1 t 6:2 2 ) tr s e t
a mana d metcul r c dsofal is downsr nm c int t ough t poral Eve wih is
nd
ge
i ous e or
lt
te
le s hr
he t . n t t
knowldge of t ci nt ' l s , Hunt r W ie ne r upda e t tai ng m aeral or
e
he le s os es
e
s
ve
t d he r ni
t is

p omoto lbr hur s t i c t how poory is downsr a cusome s we e doi i t s
r
i na oc e o ndi ae
l t
te m
t r
r
ng n he e

c
omm odiis tans tons I di notmodiy t e doc
te r aci . t d
f hos
umen s e as i c i d t ofe t
t ven t ontnue o f r he
doc e st t de l r f t rus t s i tpr pe tve r t lc t r .
um nt o he a e s or hei e o olci os c i eai usome s
Ht e W ie i t s M r J ge ,a M r M a tn poc t d t i e es Hunt r W ie
mt r s nvesor , . a r nd . ri
ke e he nt r t
e
s

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

t f
he undsi r c ve I t a ofa yi t f ndst pa of i e es on r ll nsorbuyi a
t e ei d. nse d ppl ng he u
o y f nt r t ea oa
ng nd
sorng me as Huntr W ie us d t f
t i
t l,
e
s e he unds t ofs tis oblgai .The f s r t lc t
o fe t
i tons
ee e ai usomer
s
pai r duc t i a countf
d e ed he r c
unds gr a l Ht erW ie c i d t c r e i e e ta sor ge
e ty. mt
s ontnue o ha g nt r s nd t a
f s e n t ug t cha ge we ef none se s r c .
ee , ve ho h he r s r or
xit nt e vies
M r M a tn a M r J r t ough Hunt r W ie,w ilu l m ir pr ent or m a
, ri nd
. age , hr
e
s
lf ly se es ed
de
omi sons a
si
boutt pr ci m ea ta a tons a is i t s c e.l a to bas d on is
he e ous tl r ns c i
t s ue n hi as n ddii n, e
t
m iladi sa e t a wilul omi sons I fnd t t Hunt r W ie pr de a ç r l
se ng t t men s nd lf
s i , i ha
e
s ovi d n û a l
ove
mes a ' t twasi vi a i ofSeci ns4b. e de s
s ge' ha
n olton
to
The vi nce howst tHunt rW ie mil and
ha
e
s sed
de eve t r t i c t e si o e e i i o ispr c o m e ass m e.
c i d he e al usom r nt nt rng nt t e i us t l che

()
2

S in e -S t a ylc wewi h v a iig c ls '
ce tr ' h n u k
Wi
l a e Won n el.'
l

To p o e s in e,te CFTC mus s o ta t l d ee d n itn d t d fa d,
r v ce tr h
t h w h t he l lfn a t n e de o eru
l
ma iuae o de tv ,o ( a t d ee d n ' c n u trp e e t a e te d p rur fo
np lt , r c ie r t t he lfn a ts o d c e r sn s n xr me e a t e r m
h
t sa r of or na y ca e. R. Fiz r d,31 F. a 1
he t nda ds
di r r ' . tge al
' L
0 3d t 328.Con ti vi ç g y
duc nvol ng é hl
hi

unra ona e omiso o mirprs nttons ...t tpr e a da r ofmiladi (eal
e s bl
sins r se e e ai
ha esnt nge
se ng rti

c so r)whihi et rk o t teDee d n o s o vo t tEh )Dee a mu th v
u tmes c s i n wn o h fn a t r o b ius ha te fnd nt s a e
he
b e a r o i' h ve be n f t t me tte s in e rq ie n.I .(nen lq tto
e n wa e f t a
'
e omd o e h ce tr e ur me t d itr a uoain
o te )
mitd .
M r M a tn ha da t da ove sghtove Hunt W ie s ope a i .M r J rhad t
. ri d y-o- y
ri
r
er s '
r tons . age
he
a hort t sgn c tacsf Hunt rW ie, l d wih t sr t c pl nni a pr ded t
ut iy o i on r t or
e s hepe t he taegi a ng, nd ovi he
c a t and ca t nec s r t kee t busne sr nni To a gue t tt y bele i good
ont c s
pial es a y o p he i s u ng.
r
ha he
ived n

f ih t tHuntrW i ewasma ng l nst t dea e sorr t lc t e s t tt y owne a
at ha
e s
ki oa o he lr
e ai usom r , ha he
d ny
m eal, a t t t i doc nt we e not fa ulnt i i a i e. The we e t
t s nd ha her
ume s r
r ud e s mplusbl
y
r oo
knowldge bl a t i ve i t pr es t pl a i a
e a e nd oo nvol d n he oc s o e d gnor nce.
Hunt rW ie a t d r kl sy
e s c e ec es l
a d it ntona l t de i a defa t r t i c t m e s
n n e i ly o ce ve nd r ud he ea l uso r .
Huntr W ie was t maser nd be nd t mulil ve c me.M r J e a M r
e
s
he
t mi
hi he
t-e ls he
. ag r nd .
M a tn coul have c r c e t mir e e a i nsa de ptve om isonsi t a e nt
ri
d
or e t d he sepr s ntto nd ce i
s i n he gr tme s
t y e e e i o wih t deaer,t tani m a ei l i pr vi d t deae s a t m a
he nt r d nt t he l s he r i ng t ra s t o de he lr , nd he ny
do ume s Huntr W ie s nt t t r t i c t e s i l ng t Poston Re
c nt
e
s e o he e al usom r , ncudi he
ii
concla i
iiton

notc s t Tr nse ofComm odiy f
i e , he a f r
t onns ta c i ma i ,and a ountsae e s Ht e
, r de ontr tons
cc
t tm nt . mt r
W ie a l d isde e st defa t r t i c t e sa pr pe tvecusomer t y s i t d
s lowe t alr o r ud he e al usom r nd os ci
t
s he olcie
f HuntrW ie' be h.Si eHunt rW ie ove s w a 1ta ac i ,M r J ge a M r M a tn
or
e s s nef nc
e s
r a l r ns tons . a r nd . ri
ha t a lt t i or r t lc t e soft mir e e ai a de e i sa e e s but
d he biiy o nf m eai usom r
he sepr s nttons nd c ptve tt m nt,

33

f ie t do s l t d,Hunt W i e c i d t fa on t c t r whie i r a d t
al d o
o. nsea
er s ontnue he r ud
he usome s l t e pe he
be isoft i l s .
neft he r os es

()
a

Hune W iesRein eCli
tr s ' l c ams
a

M r J e a M r M a tn s e t a ol t m s vesby cl mi t y r as
. ag r nd . ri e k o bs ve he el
ai ng he e onabl r i
y eled

on s ce t t a lge y a fr e Hunt r W ie' s he di not f l under t CFTC'
our s ha le dl fim d
e
s s c me d
al
he
S

j rs ito be a e t ta s cin dd n ti v le lvea e c n rcs o b c us t e a t a
u idcin c us he rn a to s i o n ov e rg d o ta t r e a e h cu l
de i r exc pton a t lne ofbusne se e i oft Ac a i 2 The cli t tt y
lve y e i nd he i
i s xc pton he t ppled.5 y am ha he

r l d o :()Hu trW iesc u s l ( )teCFTC' 1 8 l tpr tt Letr Ba k Aciiis
ei n 1 n e s ' o n e ; 2 h
e
S 9 5 ne eai te , n t t
ve
v e
Iv l n te Sae o P e iusM eas Co
n ovig h l f r co
tl, mm.Fu .L.Re .(
t
p CCH)! 2 ,7 (
26 3 CFTC Au .6
g ,
1 8 )( e en fe 11 8 l tr rtt eLetr); n ( )t eLo d n Bu l n M ak tAso ito
9 5 h r ia tr 19 5 n ep eai te' a d 3 h n o li
v
o
r e s cain
a t For i Exc nge Co mit s 1
nd he
egn
ha
m tee' 994 l e natonal Buli M ase Agr e e
ntr i
lon
tr
e m nt

( eenatr t se Ag e me f
h ri fe ,t tr r e n ).
Ma
()
i

ThePl i M e ni oft Ac i Unn g
an a ng he t s
mbi uous

Bef r devi i o t r r la c am s Ifrt not t t none of M r J ge a M r.
o e l ng nt hei e ince l i , is
e ha
. a r nd
M a tn' cai s c n be f
ri s l m a
ound r as bl be a e t pl n me ni oft sa ut r l ngua i
e ona e c us he ai a ng he tt o y a
ge s

unn guous a t Elve h Cic tf i Hu e Wie - F. -,201 W L 1
mbi
, s he e nt rui ound n ntr s , - 3d - 4
424435( t
11h

Ci.2 4 .I Hu tr lze t Elv nh Cic i a ay e t Ac ' wo dn ,a wela M r
r 01 ) n ne ' - s he e e t rut n lz d he ts r ig s l s .
fç
z
J ge a M r M a tn' ar um e s t r a h isfndi .
a r nd . ri s g nt , o e e t i ngs
As t t l e r ge or ma gi d bass' or Gnanc d ta aci n on a smia ba i
o he ç ve a d
l
r ne
i'
e r ns to
i lr ss

ln u g of Do d F a k s e 7 U. C. j2 c ()D)i(1,t Elv nh Cic i f u d t a
a gae
d -rn , e
S.
( )2 ( ()1) he e e t ru t o n h t
i e r ng r f r gene aly t t a lt t c r hi h- ue a ount ofa commodiy ora
4 ve agi e e s
l
r l o he biiy o ontol g val m
s
t
s urt wih a compa a i l s l vaue o c t l known a t m a gi ' Hu e Wie a *
ec iy t
r tvey ma l l f apia ,
s he r n. nt r s , t 5
'
2 I m yFe u y 19, 4 Or r lf nd t tt exc ptonsunde t Ac di nota y t
5n
br ar
201 de , ou ha he e i
r he t d
ppl o

Huntrw ie' she .( 281.
e s s c me DE )

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t e

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si
t/
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e nt r ui tt d ha tl e s fned e r ge i lry n
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ot
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us ofa s le a
e
malr mountofca t t do t wor of a muc lr a
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Busn s Oveve o Hu trW ieCo dte , ( 4 4a 21 I a dto ,heElve t
ie s r iw f ne s mmo i s LLC DE - t :.n d iin t e nh
i
Cic tf
r ui ound t tM r M a tn and M r J ge ' at mptt r ad a s cfc dur tona r quie nt
ha . ri
. a rs te
o e
pe ii
a i l e r me

t veage onta t'
l
S.
6 o he
Fr k
a t e nd t de i ton ofa :e r c r c'under7 U. C.j232 t t Dodd- an
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6 J
ovi s n ri nt r:

( )M a g na c un so c n r t a Iv r g a c un so c n r cs
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pr bie e eptasaut i d
ohi t d xc
horze

Exc p a a to ie u d rs b e to ( )o ti scin, opes ns alof r o
e t s uh rz d n e u s cin b f h s e t n ro h l fe t
o
e e i t e e i o,o c im t exe uton of a tans ton f t delve y
ntr n o, nt r nt r onfr he c i
, ny r ac i or he i r
ofa c
ny omm odiy t
t mdera sa r z c r c commonl known t t ta as
tnda died onta t
y
o he r de
am a gi a ount m a gi c ta t lve a a coun , l ve agec r c ,or
r n cc , r n on r c , e r ge c
t or e r
onta t
unde any c r t a c , r nge e ,s he e orde cet tt Comm ison
r
ontac , c ount ara m nt c m ,
vi ha he
si
detnni ss r t s f i orf nc i a s h asanda di e contac,
e ne e ves he nme uncton u tons s uc t r z d
r t
o i m a ke e orm a ged i s t i l t s m ema ra s h a
r s r td
na
n ubsantaly he a
nne s uc
sa r z d c nta .
t nda di e o r ct

7U.. j2 () Ast eElv n hCic i e plie , n e CFTC r g ai n ,
SC. 3 a. h e e t rut x an d u d r
e ulto s
( lv r g c nta th ssa d r ie tr a dc n iin a di for h l n AJ e e a e o r c a tn ad z d ems n o dto s n s l t e o g
f
t m (e y r orl er pu c s ... s l'ofalvergecommo t bya
er tn eas ong ) r ha e or ae' e a
diy
lv r g c so r 1 C. R. 314 w) A lv r g ta s cin, y e tn in i a
e ea e u tme. 7 F. j .( . e ea e rn a t b xe so , s
o
d a t e c n ealv r g c nr c.1 C. R. 3 . x)M a t a dJ g ri ss
e l o x ha g e e a e o ta t 7 F. j 14( . ri n a e n it
n
tetr 'e e a ea c u t o fe e a ec nr c 'a u e i 7U. C. 2 a d
h ems û v r g c o n' rs v rg o ta t' s s d n S. j 3 n
l
' l
d fn di 1 C. R. 314 w)a dl o rcs . e tr dit . . nalvea e
ei e n 7 F. j .( , n ç nta t . n ee n o . o e rg d
c
b ss'a usd i 7U. C. 2, a etes meme niga dd r t n l
a is s e n S. j h v h n
'
a n n u ai a
o
. . .

r uie e .
eq r m nt

Huntr Wie, t* 5.The e or ,M r M a tn a d M r J rwe ei or e ti a gui t t
e s a 4r f e . ri n
. age r nc r c n r ng ha
snceHun e W ie sta a tonsma ur i f yea s t ta a tonsdo notc tt e
i
t r s ' r ns c i
t e n our r , he r ns c i
onsiut

te ea e 'ta a to o ta s ci n fn n e o asmia ba i, n t tj2()2 (
t v rg d'rnscins r r n a to s i a c d n i lr ss a d ha c( )D)
l
i i pplc et Hu e W ie sope ai . d. 5.
s na iabl o nt r s '
r tons 1 at
35

tn
.
'
t
a n me ti j2 c( )D) ie uo ,a b s. f l M r.M ari and M r Jagers suggesed
me d n n ()2 ( , f n us t e t' #. f
t
'

a ay i a pid te j2 wo l rnd r j2 c( )D)me nn ls ;Se to 2c ( )D)wo l
n lss p le , h n 3 ud e e ()2 (
a ig e s cin ()2 (
ud
S nl gv E t eCo sina t o i o e wha j23ara yp o iis'f La ty e e t o g
s y ie ) h mmiso u h rt v r t
o
y
le d r hbt. #. sl , v n h u h
'
if
t ound t sa ut y txt una guous a r e ng a
he tt or e
mbi
nd eviwi genc i e r t ton a l sa i
y nt m e ai nd egil tve

h soy wa u n c say,heElv nh Cic i n td ta b t s u c sE a mo z l l wi a d
it r s n e e sr t e e t rut oe h t o h o r e ç r nie d ' t n
h
' h
ç 0 lme te j'r s ci ey,t fn i sz
: mP e n ld , e pe tv l i i dng .?
C
'
s

As t t e f cu ld lv r 'e c p in 7 U. C.j2 c( )D)i)l1(a ,t Elve t
o h t t a eiey' x e to , S.
a
()2 ( (i(l)a ) he e nh
Cic ta i a i d t or na y mea ng oft t r t hol t ttdelver mus be ac ual'
r ui gan pple he di r
ni
he e m o d ha l i y
t
t .
'

Huntr Wie,a *9 (mphassi oi na) The El nt Cicui e ai d,tfhe s que of
e s t e
i n rgi l.
eve h r t xpl ne t' e nce
e n s contm plt d by M a tn a J r - i whih t elctoni ta f of doc e s
ve t
e ae
ri nd age
n
c he e r c r nser
um nt

i cai c r orpos e son efe t t dei r wihoutphysc lta f roft c modiy
ndi tng ontol
s si
f c uaes lve y t
i a r ns e
he om
t
-

i by a de ton c tu tve,rt t n a t l' I ( tng Bl k' LJ Di i y 494
s ny inii onsr ci aher ha cua. d. cii ac s w ctonar
'

( t e 20 9 ( ei n ç o snltv d l e y'a ta na t h ta unst ata se o tteby
9h d. 0 ) d fnig i n t cie ei r ' s ç l c t a mo t o r n f r f il
c
v
l
o rto o 1w wh n a t lta fri i rcia o i sil') TheElv n h Cic i as
peain f a e cua rnse s mp a tc l r mpo sbe' .
l
e e t ru t lo
f
ound t ot rs c ofa l i,i l ng t CFTC' own i e r t i we e unne es a y
hat he our es nayss ncudi he
S
ntm eaton, r
c sr
mbi
l xcudest c t u tve delver M a tn a J r
he onsr c i
i y ri nd age
' c e tct ldelve y'una guousy e l
ç aus a ua
be
i r
a gueoc r e ,'I . a #1 .2
r
cu r d ' d t 0 8

2 A fe denovo r vi t El ve h Cic ta fr
7 tr
e ew, he e nt r ui fimedt l ga co l i i t sCour'
he e l ncuson n hi
ts

Fe r a. 2 2 3Or e o Plitf sM oi nfrPr l n r lj ncinta j2 c ( )D)
b u l 6, 01 d r n anif to o ei ay nu to h t ()2 (
y
mi
co st ta a i nsi diput i t sm a tr Hu e l fd, t#6.
ver he r ns cto n s e n hi te . ntr ' x a
F&

2 Th Elv nh Cic i f u dt tçb a e o (h sCo r'ls u dfcu li d n a da tr#
8 e e e t rut o n ha ' l s d n ti u ts o n a ta fn i g n fe e
l
nov r viw , t sCour' Fe ua y 26, 3 Or ron Pl i ifsM oton f Pr i i r
o e e ' hi
'
ts br r
201 de
antf
i or elm na y

Ij n to ' ie a c ncuso t a t ee e to ddn ta pywa n ter n o . Hu trWie
nu cin s s g l o l in h t h xc pi n i o p l s o ro e us' n e s ,
l
'
a #7. Elve h Cic talo f md t tm y indi t tt e or ea e o i tont de i r
t The e nt r ui s ot ha
ng ha he nf c bl blgai o lve

e c pi n s e7U. C. 2()2 ( (i(l)b ) ddn ta pywa n ta e r ro lw sn el
x e to , e
S. j c ( )D)i Il( b , i o p l s o n ro f a ic
)
f
oundt tHuntrW iedi notownt m eal. u e I à a *8.
ha
e s d
he t s H nt r K ' t
e,
36

Fort s me r as ,I fnd t tM r M a tn and M r J gers ca me r inc on o he
he a
e ons i ha
. ri
. a ' li d ela e
t r
s c t dee mi whehe Hunt W ie' s heme,whi h i ve mir pr enttons a
our es o tr ne
t r
er s s c
c nvol d se es a i
nd
de e i omisons vi a e t Ac i u e s bl The pl n r di of t saut
c ptve
s i , olt d he t s nr a ona e.
ai ea ng
he t t e

d mo tae t a teCF h s u idcin o e Hune W iea d ta Hu trW iec mmi e
e nsrts h t h TC a j rs ito v r tr s n h t ne s o t d
t
fa t tti r d CFTC enf c m e pr e ngs
r ud ha rgge e
or e nt oce di .

(i
i)

Hu e W ie' Couns
ntr s s
el

M r M a tn a M r J ge cai t t Huntr W ie' l ga c
. ri nd . a r l m ha
e
s s e l ouns l advie t m t t
e
s d he ha
Hun erW ie owne a pos es e me a sa t tt tans ci i e
t
s
d nd s s d t l nd ha he r a tons t ngag i di notvi ae
ed n d
olt

t Ac. l lght of al t e d e t t c r y,t i pur t d r la o couns i
he t n i
l he vienc o he ontar her pore e ince n
el s
dii nuo .
snge us

l t wee ladi u t J y 1 2011 t da et Dodd- r a e e st t Ac
n he ks e ng p o ul 6,
, he t he
Frmk m ndm nt o he t
be a e e or a e,M r J ge a M r M a tn r c ve cl r wa ni fom Hunt r W i e
c m nf ce bl
. a r nd
. ri e ei d ea
r ngs r
e
s
c
ouns l M r Gi nnone t t Ht e W ie' ope ai we e ilgalunde Dodd- a M r
e
. ovn
ha mt r s s r tons r le
r
Fr nk. .
Gi va
o nnone i no u e ti t nns t d M r J ge a M r M a tn t s down Hunt W ie
,n
nc ran e , ol
. a r nd . ri o hut
er s

u i i c mpid wi t eAc. e E- i fo Gi v n o et J g ra d M a t (u e2 , 01 )
nt t o l
l
e t h t S e mal r m o a n n o a e n
h
ri J n 4 2 1
n
(
CFTC Ex.18 a 3) Aferlani t tM r M a tn a M r J erhadnota t upo t pl s
7 t . t e r ng ha . ri nd . ag
ced n he mz
he had r omm e d t ke p Hunt r W ie fom vi a i t l he wa ne t m t tt y
ec
nde o e
e
s r
oltng he am
r d he ha he
c d f e c i i la lt i t y c i d Hunt W ie' ope a i . e E- lfom M a tn
oul ac rm nal ibiiy f he ontnue
er s s r tons Se mai r
ri

t Giv n o e (uy 1 2 1 (
o o a n n J 1 2, 01 ) CFTC Ex.1 9 a 4 . r M atn a d M r J g ritni n ly
6 t ) M . ri n
. a e n e to al
i r d M r Gi mnone' a c a t y aced r c e sy i c i ng t de r ud t r t i
gno e
. ovr
s dvie, nd he t e kls l n ontnui o fa he e a l
c t e sahe Dodd- n bec meefe tve.
usom r
r
Fr nk a
fci
.
tn ha
tr s s
Hu e W ie' ot c
nt r s s her ouns l wa ned M r Ja r a M r M ari t t Hun e W ie'
e
r
. ge nd

tl
r ale,
pe
l
doc nt r grdi Huntr W ie owni a sorng me a s we e f s See Ta d Cal
ume s e
ng
e
s
ng nd t i

Bewe n Gr s n a d Ga dno( v 21 2 1a 1 :5 am. (
t e osma n u i No . , 01 t 14 . ) CFTC Ex. 2 ) M r Gr s n
2 7 . . osma
e a ne t Hun e W iet dif r ncebe wee t a r nge nti ha w ih t m ealSuppler
xpl i d o
t r s he fe e
t n he ra me t d t he t
is

(. smagi ta ng a ount mea t ofs tHuntrW iesoblgai t t r t lc t r)
ie. r n rdi cc s nt o fe
e s ' i tons o he eai usomes
a pose sng physca meal.E- i fom Gr s n t M atn (u1 24,2011 (
nd s si
i l t s mal r
osma o ri J y
) CFTC Ex.

2 ) Mr Cae q sin d M r Ma t i p riu a,a o twh h b le e Hu trW ieh d
38. . ry ueto e . ri n a t lr b u y e eiv d n e s a
n,
c
so e m ea swih e c oft Su i stgi n wha s me t be t book e r oblgai a
t r d tl t a h he ppler t ve
t ee d o
he
nty i tons s

o p s dt s mehig( )c ul h l i g i)h n 'Cae De . t1 : 1 1 .
p o e o o t n he o d od n hs a d. r y po a 42 1 - 7
'
Eve Hunt rW ie' c
n
e
s s ouns lM r Ca e whom M r J era M r M a tn cai t r l
e . r y,
. ag nd . ri l med o ey
o f t i u rt ndi of Do Fr k,t sii d t tM r M a tn' beleft tHu e W ie
n or he r nde sa ng
dd- nn e tfe ha
. ri s i ha ntr s
own m eal wa wr
ed t s s ong.Ha he smpl s
d
i y poke t t me as Supple s M r Ca e saed,M r
n o he t l
ir , . r y t t
.

M a tn woul ha ha t ac e wha e r
ri
d ve d o c pt t ve yone es ar ady kne t bet u no me a se sed.
le le
w o r e:
t l xit
Se Ca ey De 62:9- The Supple s r e e ai sco imed t obvi usunde sa ng
e r
po. 1 24.
i r ' epr s nt tve nfr
he
o
r tndi
t tHunt W ie wa tadi i m a gi a count Owne s p a dei r di notocc untl
ha
er s
s r ng n r n c
s.
rhi nd lve y d
ur i
Huntr W ie pa d i f lf t m eal.The e se ofHunt rW ie' tadi ac ount ,wih
e
s i n ul or he t s
xitnce
e
s s r ng c s t
ma gi cal ,coun e sM r M a tn a M r J ers un e ona e cli t i ha t i nt y
r n ls
tr
. ri nd . ag ' r as bl am hat t d he nve or
on ha t delve m e a st r ti c t e s
nd o i r t l o ea l usom r .
M r Ca e wr e a l ga memor ndum t he s nt t M r J ger a M r M ari on
. r y ot
e l
a
hat
e o .a
nd .
tn

Augus 11 2011 i r r t Do Fr nk e or eme .Se Car y De 1 22- 47:7.M r
t ,
n ega ds o dd- a nf c nt e e
po. 46: 1 1
.
Ca ey pr m ie hi a l i on c ti m aera as umptonst twe e i ore ta t tgr ty
r
e s d s nays s
era n t il s
i ha r nc r c nd ha ea l
i l nc hi fndi t tt Actdi notappl t HuntrW ie.Fo e
ntue ed s i ng ha he
d
yo
e
s
r xampl t m e and
e, he mor um
S ntcpat , wihouti tga i t ta1 oft deaer Hunt rW ie deatwih we e Eei bl
k ii es' t
a
'
nvesi tng, ha 1 he l s
e
s
l t r çlgi e
co r c pa tcpa s'a t r f e,not r t l c t e s 1 a 1 1 1 22.He wa not
nta t rii nt' nd, he e or
eai usom r . d. t 49: 7- 50:
s

a r t tonl ahe Hunt rW ier eve t r t i c t r 'f
wa e ha y r
e s ec i d he e a l usome s '
undsdi Hunt rW ie g r t
d
e s ene a e

38

a a co f t r t i c t m e s a s ntba k t de e s'c oft f .1 a 1 : 1
n c unt or he e a l us o r nd e
c he alr ut he '
unds d. t 513- 3.

F rh r M r Cae a s me t a ç- n e W iesc n rcs( r )n te c tdo alv r g do
u te, . r y su d h tll tr s ' o ta t we e o xe u e n e ea e r
lu
ma gi d ba i. 1 a 1 1 1 1 Si e Ht e W ie di i e ac wih r t i c t e s
r ne ss' d. t 53:9- 55:4. nc mt r s d nt r t t e al usom r
'
t ough t poral we ie a t de e s de nde o Huntr W ie f fna i l ai a
hr
he t
bst nd he alr pe d n
e
s or i nc a d nd
s r i s Hunt rW iekne M r Ca e sas umptonswe ei c a e.
e vce ,
e s
w . r y' s
i
r nac ur t
M r M a tn a M r J ge ct t l ga a l i ofDodd- a pr pa e by M r Gr s a
, ri nd . a r ie o e l na yss
Fr nk e r d
. os m n
os m n o a r n
ri
on J 23,201 t s ppor islga r la cai .9E- alfom Gr s a t J ge a d M a tn
une
1o u
t t e l ei nce l m 2 m i r

(u e 2 ,2 1 ) ( ne W ie Ex 5 .Mr Gr sma rp e e td Hu tr W ie Ll y s a d
J n 3 0 1 Hu tr s . 4) . o s n e r s ne n e s , o d , n
i vi lde e s aswelasM r J ge a M r M a tn,i vi ly,a hi fnge prn sa e al
ndi dua alr ,
l
. a r nd . ri ndi dua l nd s i r i t r l
o rt ss me. h hi f c ua sa e nt a l lopi o lck c e b lt 3 M o eo r j
ve hi che Bot s a t l t t me s nd ega ni ns a r di iiy.0 r ve , w
explcil n e i a e- lt tt pli mea ng oft Ac wa t prma y r olr .1 a 1.
i ty ot d n n mai ha he an
ni
he t s he i r es zce d. t
Consde i t f tt tt Elve t Cic tf
i rng he ac ha he e n h r ui ound t saut y l
he t t or anguag unambi uous i i
e
g
,ts
unr as bl f M r M a tn an M r J ge t cli t ha bei ve M r Gr s n' sr i d
e ona e or . ri d . a r o am o ve le d . os ma s tane
i e pr t ton r t rt t pl i l ua oft Ac .
ntr e a i ahe han he an ang ge he t
Eve as umi M r J ge and M r M ari be ive M r os man' J
n s ng . a r
.
tn le d
.Gr s
s une 23,2011
Fr
e lain ta te CFTC h d n jzidcin ov r Hu tr W ie under Dodd- aA , s4r.
vau to h t h
a o l s ito e ne s
r
Gr s ma s a l i a m o h lt rc l i o quesi t rcai ofgood f ih r la
o s n' na yss
nt a e als nt
ton hei l ms
at e ince.W hie
l
e tng t Tr nserof Pr c ous a l ti lM e a no i ,whi h we e mea t r pl e t
dii he a f
ei
nd ndusra
t l tce
c
r
nt o e ac he
Tr ns e ofComm odiy notc Huntr W ie s t r t i cu t m e s M r Gr s
a fr
t
ie
e
s ent o e al s o r , . os man expli d
a ne
t t f r il ou exa ty wha i beng he d,how a f whom . tnowhe e s yst tHW
hat he o m ûays t c l
ts i
l
nd or
I
r a ha

a da yo HW ' c so rd aesi (h u h te ma b )h dnga y p ysc lp o u tt a i
n n f
s u tme e lr s to g h y y e oli n h ia r d c h t s
2
9
M Ja ra M r M a tn f ie t s
ge nd . ri al d o how t tM r Gr s
ha . os manw a una ia e t t siy
s val bl o e tf
Bec us r
a e .
a ti l M r Gr s n' de ii wa notad itd a ti .
t ra , . os ma s poston s
m te t ral
3 F t rhe dic son ofM r. os ma sc r dit y a q si
0
- t r s us i
Gr s n' onta cor nd ue tonabl c
e onduc a Hunt r
ts
e
or u
W i e' co e ,s s pr not 24.
s s uns l ee u a e
39

r quie t me toblga i t HW ' de l rcusome soruli ae y t r t i cusome . E- al
e rd o e
i tons o
s ae
t r
tm t l he e a l t r' m i
'

fo Gr s ma t M a t (uy2 2 1 (
r m o s n o ri J l 4, 01 ) CFTC Ex. 3 ) M r Gr sma g e o t caiyt a
n
2 8 . . o s n o s n o lrf h t
Hunt W ie wa ta ng t ofs tisoblgatons;i wasno i pos es i ofany me a s 1 a 2.
er s s r di o fe t i i
t
t n s son
t l . d. t
Furhe mor M r Gr s n sa e t tt Poston Re ncii ton sa e e tfom DDSC c d
t r e, . os ma tt d ha he ii
co lai t t m n r
oul
ç t ntaly' bem il di t r t i c t e ssnc i s gessHunt rW iehasphysc me a s
i e il'
po
sea ng o e a l usom r i e t ug t
e s
ial t l
a DDSC g ve as ur nce o t c
nd
i s s a s f he omm o te ' e se
dii s xit nce wihout s ei t . f M r
t
e ng hem #. .
Gr s a knowi t tt r wasino me a a t end oft r i
os m n,
ng ha he e
l
t l t he
he anbow , a s Hunt r W ie
' dvied
'
e
s

ta i t ul b b te ... o (r vd )ta h e te p a ain rt rta s met id p ris
h t t s d e etr t p o ie h t on s x ln to ahe h n o hr a t '
wo
e
as ur nce t t ac ountpa rwor desgnai a c
s a
hat he c
pe
k i tng ompl t hedge ba anc d ta ng poston
ee
l e r di
ii

exit 'f HuntrW ier c ve a e ua i ofwha HuntrW ie' s m e r a l w a ,e
ss. #.
'
e
s e ei d n val ton
t
e
s s che
e ly s ven
fom M r Gr s a ye i chos t i e i.
r
. os m n, t t
e o gnor t
Hunt rW ie' c
e
s s ouns lmad M r M ari a M r J ge a r oft l galt is t
e
e . tn nd . a r wa e
he e iy s ues he

pr i me al ta a i a lngua i Hunt rW ie' doc nt pr en e The we e on
ecous t s r ns ctons nd a
ge n
e
s s ume s es t d. y r

n tc o t ed c p in y tt y d cd d t rs i,lu he a o th vi ç d onn c ls' a d
o ie f h e e to , e he e i e o ik t a g d b u a ng l j iig el, n
a
'
c i d t mil d a de ei cusom e s The e wa n m eal4 t end oft r i
ontnue o sea nd c ve t r . r s o t t he
at
he anbow'
'
onl ofs ti ta a tons.Rahe t n r l upon t advie of c
y f etng r ns c i
t r ha ey
he
c
ouns ,M r J ge a M r
el . a r nd .
M a tn i e i.
ri gnor d t

On t oft clarwa ni and e a tonsfom Hunt rW ie' c
op he e
r ngs
xplna i r
e
s s ouns l M r M ari s
e , . tn'

own saeme sc r dithi cli t the a t ly bele t tHunt rW iepos es e m ea s
t t nt onta c s a m ha
cua l ived ha
e s
s s d tl.
l lt J 2011 t FOFR s r d Huntr W ie wih a s poe f docume st tr a e t
n a e une
, he
e ve
e
s t ub na or
nt ha elt d o
is c i i l i si to of one of Hun e W ie' de e s M i As e M a ge e . l
t rm na nve tgai n
t r s s alr , das s t na m nt n

e ai ng t r que tt M r M a tn,M r Gr s a sa e t tFOFR as d f t l to of
xpl ni he e s o . ri
. os m n t t d ha
ke or he ocai n

tealg dy so e meas E- i fo Gr sma t M a t (uy 5 201 )( TC Ex. 3 a 1.
h le e l tr d tl. mal r m o s n o ri J 1 , 1 CF
n
24 t )

40

The s me da M r M a tn r ponded t M r Gr s a c ng M r Ca e satng,i bele
a
y, . ri es
o . os m n, opyi
. r y, t i $ ive
l
ourr pons t t quesi ofwhe et me a i sor d ne t beca ef l t
es e o he
ton
r he t l s t e eds o
r uly houghtout' 1
. d.
'

M r M a tn' he ia t r s
. ri s stncy o e pond belesa cli t the a t ly be ived Hunt rW ie oris
i ny a m ha
c ua l le
e s
t
c t r a t lypos es e a hi
usome s c ua l
s s d nyt ng.

(i) TheCFTC' 1 I epr ai Letr
ii
S 985 nt ettve te
To a g t tt be ived t t y hel ttet t e met sbec us oft CFTC' 1
r ue ha hey le
hat he
d il o h
al
a e he
S 985
l e r t tveLe tri hi y un ea o bl TheCFTC is t 1 l e r t i Le tra t
nt p e ai
te s ghl r s na e.
s ued he 985 nt p eatve te fer
a ur m e ba r uese lgalc a i a i ofpotnta la lt unde t Ac r ga di is
n mn d nk eq t d e
l rfc ton
e il i biiy
r he t e r ng t
pr e tans cto TheCFTC expli d,
opos d r a i n.
ane

A ba ta aci i vi g t pur has a s l o pr c ous m eal t be
nk r ns ton nvol n he
c e nd a e f e i
ts o
s tl d i t busne sda wih t bank r cevi pa e i f lf o a de l r
ete n wo i s ys t he
e i ng ym nt n ul r m
ae
who woul r el t me ast isown r t lc t e wih die ton f t ba
d es l he t l o t
eai usom r t r ci or he nk
t ta f rowne s p a ttet t me a st t pur ha e ' na e,
o r ns e
r hi nd il o he t l o he c s rs m woul notbe
d

alve a c r c wihi t mea ngofCommisonReg.j314( .
e r ge onta t t n he ni
si
. w)
1 a 1.
d. t The CFTC' 1 l e pr ttve Le trwa is d t t fveyea sbef r Dodd- a
S 985 ntr ea i
te s s ue wen y-i
r
oe
Fr nk

wa pas e l co d no pos i y i e r tt i ctDodd- n woul ha on t l ga iy of
s s d. t ul t sbl nt m e he mpa
Fr nk
d ve he e lt
HuntrW ie' s he
e
s s c me.
l t 1 l e r t tveLet r t CFTC f
n he 985 nt p e ai
te , he
ound t tt ta ac i wa nota lver ge
ha he r ns ton s
e a d

ta acin unde Re ai j314( .As t Elve h Cicui f
r ns to
r gulton
. w)
he e nt r t ound i Huntr F/', a
n
e â
e

lv r g d ta a to u d rRe uain j314( a d u d r j2 c( )D)i(l wee n tt
e e a e rnscin n e g lto
. w) n n e ()2 ( ()l) r o he

s me Do d Frn b o d n d te CFTC' j rs ito t icud fna c d c mmo iy
a . d - ak raee h
S u idcin o n l e i n e o dt
ta s cins wi c s mes S e 7 U. C. j2 c ( )D)i(l. Un e te Do d F a k
r n a to
t on u r. e
h
S.
( )2 ( ()l) d r h
d -rn
a ndm e s i t r t lc ume wa e e i i o a sna d ta a ton,t t CFTC had
me
nt , f he eai ons r s nt rng nt
nce r ns c i hen he

41

r gulton
J iditon ove t ta a ton; t r we e no tm e r uie e s as unde Re a i
' s ci
ur
r he r ns c i
he e r
i
eq r m nt

j314( .1
. w)3
t
e
(v) TheM aserAgr em ent
i

M r J ge a M r M a tn f ie t s
. a r nd . ri al d o how how i wa r s bl t r l on t M a tr
t s ea ona e o ey
he se
Agr eme t de e mi t t l t ldei r 'e e i apple t Hunt rW ie' s me.
e nt o t r ne hat he t ua lve y' xc pton
ac
id o
e
s s che

The M a t r Agr e e wa esa ihed s t t pari s e ng t e e pr ci m tal
se
e m nt s t bls
o ha
tes e ki o nt r e ous t
tans tons c d us a unior tm plt . l pr de no dic son of t lgaiy of t
r aci
oul e
f m e a e t ovi s
s us i
he e lt
he
ta a tonsi t Unie Stt a doesnotdet lhow gove nm e r gul t s woul e or
r ns c i n he t d a es nd
ai
r nt e aor
d nf ce

terlws M o e v r t 1 9 M atrAge me te pan n i e t e CF Sj rs ito n r
h i a . r o e , he 9 4 se r e n x li s et r h TC' u idcin o
h
t l lt ofHunt rW ie' c
he egaiy
e s s onduc ,i lghtoft Dodd- a a e e s. r f e,t r l
tni
he
Fr nk m ndm nt The e or o e y
on a prva e a r e e bewe t pa te t deer ne wheherDodd- n a is t t r
i t g e m nt t en wo ri s o t mi
t
Fr nk pple o hei
s he ei hi y unr a ona e.
c m s ghl
e s bl

(
b)

Pr ousAle tonofFrudacans M r M atn
evi
lgai
a
i t . ri

Tha M r M a tn ha pr ous de lngs wih t FTC, a f de a r gul t r a ncy,
t . ri d evi
ai
t he
e r l e a o y ge
r r ng fau a a pr i
ega di r d t
ecous metl tr f t r s
a s l m urhe uppors t i c ton t t he wa
t he ndia i ha
s
knowldge bl oft t sofi or ai a c
e a e he ype
nf m ton nd onduc t woul c tt t c
t hat
d onsiu e omm odii sfa
te r ud.
The FTC a lged t tUni e ,whe e M r M a tn wor d as a exe utve,defa d is r t i
le
ha
m t
r
. ri
ke
n
c i
r ude t e al
c t r by t alel r pr s tng,die ty or by i i ton,t t a i smen i pr i
usome s
f s y e e en i
f
r cl
mplcai ha n nve t t n ecous
me a sorcurenc e ûnanc d by def nda s i 1 i rs 'a it i i hi y lkel t ta
tl
r is
e
e nt s ow n ik' nd çhat t s ghl i y ha n
3 Si pl r adi t 1 l em r t i Let rdipr
1 m y e ng he 985 nt eatve te s ovesM r M a tn a M r J ge ' good f ih
. ri nd . a r s
at

rla c cam. nteLetr teCFTC f u dta t s ta a to we en ts b e t o
ein e li l h te sh
o n h the e rns cins r o u j c t

r gul ton by t CFTC a lt a a tonsi vi c r t ofs l ofa c modiyf f t e
e ai
he
s lr ns c i nvol ng ontac s a e
t
om
t or u ur

delvey'ast t m i us di Seci 2()1( oft Ac.' e 1 l eprttveLetra
ir
hater s e n ton a( )A) he t'Se 985 ntr eai te t
3.
Howeve ,unde t Ac , heCFTC may r ae t s tans c i a t ft agr e e ,
r
r he t t
egul t he e r a tons s ç he e m nt
i
c ta t orta a i n wasa c r tofs l ofac
on r c , r ns cto
ontac
ae
ommodiy f f t edelver '7 U. C.
t or uur i y.' S.

j2c ( )D)i ) Th p an ln u g o t esauema e ce rta te 1 8 I tmr ttv
()2 ( (i . e li a g a e f h ttt k s la h th 9 5 ne eaie
i
Le tr sfndi woul nota y.
te ' i ngs
d
ppl
42

i t wile r a hi h pr i on a i sme i pr i m e a sor curenc e fnanc d by
nvesor l a n
g oft
n nve t nt n ecous t l
r is i e
de e nt wihi a f w mont oft tm e oft i sm e i made. Com pl CFTC Ex.1
f nda s t n e
hs he i
he nve t nt s
'
'
.
58,

FFC v Unme, . 2-75 , !D- ( Ca.Se t 2 1 9 ) Th FTC' a to a an tMr
. i tNo 9 5 9 7 E CD 1 p . 3, 9 2 . e
,
S cin g is .

Ma t c cu e wihaCo e tOr e ta p r n n l e j i e h m fo mir p e e tn a d
ri on ld d t
n
ns n d r h t ema e ty n on d i r m se rs n ig n
f ii t dic os ma e i lf c spe tne t acuso e ' decson t e e i o a commodii
a lng o s l e t ra a t ri nt o
t m r s ii o nt r nt ny
tes
ta a ton.Se Cons nt Or as t De e n s E.Keih Owe ,Ed M a tn,a Ed M ye s
r ns c i
e
e
der o f nda t
t
ns
ri nd
r,

CFTC Ex.1 Fe r Tr Commîsonv Uni Cr di Cor , 92- ( Cal,De
59, de al ade
si . met e t p.No. 5759 CD . c.

2 ,1 9 ) Th Co sn Or e as p e e td Mr M a t fo h li o h r mir p e e ta
0 9 4 . e n e t d r lo rv ne . ri r m epng t e s se r s n nd
n
omi ma e i f ct t c t e sa wel. #.
t t ral a s o usom r s l J
De pie t sCons ntOr r ofwhih M r J erwasawa e M r M a tn e e e i o t
s t hi
e
de ,
c
. ag
r , . ri nt r d nt he
Ht e W ie s he t de r ud r ti c t e s M r. a tn a M r J era tm pt t r m o
mt r s c me o fa ea l usom r . M ri nd . ag te ed o e ve
HuntrW iefom diec i e f c wih r t i c t r t i ult t m s l sfom vi a i M r
e
s r
r t nt ra e t e al usome s o ns a e he eve r
oltng .
M a tn' Cons ntOr ra t Ac .
ri s
e
de nd he t

()
c

Ge rlDicos eAzre nt
nea s l ur e me s

Durng t vi i s ts i
i he ctm ' e tmony a ti ,M r J ge and M r M ari poi e outt tt r t l
t ral . a r
. tn nt d
ha he eai
c t r sgned docume st tc aned a rs dic os e,whi h i t n woul i cae lc
usome s i
nt ha ont i
ik s l ur
c n ur
d ndi t a k
ofs i n e . Elve h Cic tha he d,howeve ,ha a ge r ldi cos e i notenough whe
c e t r The e nt r ui s l
r t t ne a s l ur s
n

te d fn a tso ealme s g c n tt ts fa .R. Fiz r l 31 F.d a 1 29 31(ii
h ee d n ' v rl sa e o siue rud J tge ad, 0 3 t 3 - ctng
CFFC v Sioi 1 F.d 1 3 11 6( 1h Ci.1 9 )(% es ro sy d u twh t rbolr lt
. d t, 78 3 1 2, 3 1 t r 9 9 ç eiu l o b ehe i pae
W
e
rs dico u eln u g c ud e e rn e a e rirmaeil se r s naini tra. ) A
ik s ls r a g a e o l v r e d r n a le tra mir p e e tto mmaeill .
'
r t i c t r ca
e a l usome nnotbe a cur t y i or e of t tans cton whe Hunt r W ie' ov al
c ael nf m d
he r a i
n
e
s s er l

me s ge wa one of l ge pr s gai a g a ee m eal. The m ir pr en a i a
sa
s
ar
ott ns nd uar nt d t s
s e es t tons nd

43

omi sonsby Hunt rW ie a t De l rDef nt we e t o pr valntt ove c e a ge r
si
e s nd he a e
enda s r o e e o r om
ne al
rs dic os e a a ag e m e tt pay f e
ik s l ur nd n r e n o
e s.
For a1t a or m e i
1 he f e ntoned r as ,l fnd t tM r J era M r M ari kne Ht e
e ons i ha
. ag nd . tn
w mt r
W i e s omisons a m ir pr e ai r r ng t diput ta a tons i t s ma tr
s'
si
nd se es nt tons ega di he s ed r ns c i
n hi
te
pr s t d a dange ofm iladi r t i c t e s The e or t CFTC ha m e is btr n i
e en e
r
se ng e a l usom r . r f e, he
s t t zde n
pr ng t s e e e e e unde Se ton 4b oft Ac .
ovi he cint r l m nt
r ci
he t

()
3

Ma e ilt
trai
y

The ls elmentofa fa c am i whe he t mir e e aton,sa e nt oromi son
at e
r ud l i s t r he sepr s nt i t t me ,
si
wasma e il $ r pr s n a i n o omison i t t ral i ar s bl i s o woul co i r
t ra . $ e e e t to r s i s ma t i ' f ea ona e nve t r
A
d nsde

ii
t mpora i de i ng whehert m a a i t e .'R. Fiz r d,31 F.d a 1 28tnt n c di
t o ke n nvesm nt' J tge al
0 3 t 3 29

(iig A lae Ut Ciz n o Uth v Uni d Sa e ,4 6 U. 1 8 1 3-4 ( 9 2 ;R& I
ctn y itd e t e s f a . t tts 0 S. 2 , 5 5 1 7 )
i
e
'
F
T c nia S r s,Lt v CFF 2 5 F.d 1 5 1 9 ( t Ci.2 0 ).M ila i g if r t n
e h c l e v . d . C, 0 3 6 , 6 5 h r 0 0 ) se d n n o mai
o
r ga di t s f t oft i sme woud be de d m a e il Se ,eg. Clyt n Bro r ge
e r ng he a e y he nve t nt
l
eme
t ra . e . , a o
ke a

Co v CFI ,7 4 F.d 57 5 0 1( 1hCi.1 8 (l ers i ee t n (o dt f t el
. . ' 9 2 3, 8 -8 1 t r 9 6) th ik nh r n i c mmo iy uurs
C
t
ta i i amaeilfc l R. Fi g r l , h Elv nh Cic i f u d t tfiig t i f r
r dng s
tra a f). n J t e a d t e e e t ru t o n ha aln o n om
z
pot nta cusome s t nea l a lof a fnn' r ti c t r ha l t m o y wa m ae il
e i l t r hat ry l
i s ea l usome s d os
ne
s tra
be a e a r s na e i sorwoul wa t know s h i o m ai be or i tng.31 F.
c us ea o bl nve t
d nt o
uc nf r ton f e nvesi
0 3d
at1
332.
Hunt W ie made numer mir pr e ai a dec ptve o isons i c
er s
ous s e es nt tons nd e i m s i n onne ton
ci

wih t s l ofpr ci me a s A potnta r t i c t e wo d 5nd i t be a m aera f c
t he ae
e ous t l .
e il e a l usom r ul
to
t il a t
t t al t a l of Hunt r W ie' c t e s l t mone I f l t dic os i is ta ni
ha mos l
e
s s usom r os
y. t aied o s l e n t r i ng
m a l a t docu e s i s t r t i cusome s t rs i r nt i t pr c ous m eal
nuas nd he
m nt t ent o e al t r he ik nhe e n he e i
t

44

i sme si o whih i kne r t i cusom e swe e e e i Ast sii d t by s ve a Huntr
nve t nt nt
c t w e al t r r nt rng. e tfe o
e rl
e
W ievitm s t si or ai wasundoubtdl ma e i l
s c i , hi nf m ton
e y t ra .
Hunt r W ie knowi y mir pr e e t t of a r nge e i ha m a wih t
e
s
ngl se es nt d he ype
ra m nt t d de t he
metl Supple s Event
as
ir .
hough t we ei or
hey r nf med by Hun e W ie' c
t r s s ouns andt y confr d
el
he
ime
i em a lc
n - i ommuni ai t tno metle se on Hun e W ie' be l,oron a
c tons ha
a xit d
t r s s ha f
nyone e s s
le'
be l f rt tm at ,M r M a tn a M r.J rs ug t de i r t i c t e sby wor ng
ha f o ha ter . ri nd
age o ht o ceve e al usom r
di
t ei doc e s i s h a wa t m a i s em lke Ht e W ie ha me as.Hunt W ie
h r um nt n uc
y o ke t e
i
mtr s d t l
er s

c i d t s nd outTr de Con im ai and Poston Re onc lai sae e s sai t t
ontnue o e
a
fr tons
ii
c ii ton tt m nt t tng ha
r t i c t r owne me al.
e al usome s
d t s

Hun erW ie de c i d isofs ti ma gi ac ount asowni a de i rng m ealon
t
s s rbe t f etng r n c s
ng nd lve i
t

is c int ' be f M r M a tn a M r J r we e a r t s de c i i wa f le.Reai
t le s hal. . ri nd . age r wa e hi s rpton s a s
tl
c t e st htt y we e pur ha i m e as.The we e t l t y owne t me a and t t
usom r houg he
r
c sng t l
y r o d he
d he t l
ha ,
bec us so a wa mor efi i nt t pa d a sor f e t ha t dea e sand HuntrW ie
a e t r ge s
e fc e , hey i t age e o ve he l r
e
s
ke p t i me a ss f Undo t dl k
e her t l a e.
ub e y, nowi t tt y we e notbuyi ma e il woul ha
ng ha he
r
ng t ra s
d ve
be c uc a i or a i t ha a t c i r Pe ha s e r t lc t r woul ha
en r i l nf m ton o ve nd o onsde . r ps om e ai usome s
d ve

e t r i t t spr c o m eal ta aci wih Huntr W ie ha t known t t e rs
n e ed n o hi e i us t s r ns tons t
e
s d hey
he nz ik
i ved a t t ofs he eHun e W iehad s tup.
nvol
nd he ype c m
tr s
e
Howe r be us Hunt W ie di not
ve , ca e
er s d

pr d t m wih m ae i l i or ton,t r t i c t r e e e i o t e i sment
ovi e he
t
tra nf ma i he e a l usome s nt r d nt hes nve t s
blndl wihou a ac ur t a c
i y, t t n c ae nd omplt pit eoft ta a i n.Asa r s t t <ma e i lt '
ee c ur
he r ns cto
e ul, he d t raiy'
r quie e i m e .
e r m nt s t

Ac or ngl t CFTC has me is bur n i pr ng Hunt r W ie i la e f fa
c di y, he
tt
de n ovi
e
s s ibl or r ud
unde Seci 4b oft Ac .
r ton
he t

45

E

#. Se t n 6 c ()o h Ac a Co si nRe l t 1 01- au
cl ()1 ft e t nd mmiso gu ai 8 . Fr d
o
on

Co n Threalg st a Hu trW iec mmi e fa d t e Se to 6 c( )o teAc
u t e le e h t ne s o t d ru md r ci n ()1 f h t
t
a Com mison Re ai 18 1 whi m a
nd
si
gul ton 0. , ch kes i Su a ul f a pe s d r ty or
t çnlwf or ny r on, iecl
i r c l t us ore oy ...i c
ndie tys o e
mpl
n onne ton wih .. a conta ofs l ofa co modiy i
ci
t .
r ct ae
ny m
t n

itrtt c mmec . .a yma iultv o de e tv d vie'7U. C.j9 1.Be a s o t e
ne sae o r e . n np aie r c p ie e c .
' S.
() c u e f h
smiaiisbewe nSe to 6c ()o t Ac a d S ci n 1 ( )o teSe u iisExc a eAc
i lrte t e cin ( )1 f he t n e to 0 b f h c rte
h ng t

o 1 3 ,1 U. C. 7 jb , h CFTC d cd dt t d lfn l l 1 01o ( eSe u iisa d
f 9 4 5 S. j 8( ) t e
e ie o t e ia Rue 8 . n t c rte n
mo
h
Exc a g Co s in (SEC') Rue 1 b 5.To a c u t f r t dfe e c s b t e te
h n e mmiso 1 ' l 0 1 )
c o n o he if rn e ewe n h
s curte ma ke s a t de i tves ma ke s t Comm ison wil b gui
e iis r t nd he rvai
r t , he
si
l e
ded, but not

c n r l d,b t e s b tn ilb d o j dca p e e e ta lig te c mp rb eln u ge o
o tol y h u sa ta o y f u iil rc d n ppyn h o a a l a g a f
e
' 2P hi ton on t Emplym e ,orAte p ed Empl
'
3
bii
he
o nt
tm t
oyme ,ofM a pultve
nt
ni a i
SEC Rul 1 5. r
e 0bo

a De e i De c a Pr bii o Prc M a pulton,7 Fe Reg.41 41 (ul
nd c ptve vies nd ohi ton n ie ni ai 6 d.
399, 401 J y

1 , 01 ) A d fn n i la efraSe u iisEx ha g Ac Se to 1 ()vilto i t eS
4 2 1. ee da t s ibl o
c rte c n e t cin 0b o ain f h EC

p o e :: 1 maeilmirp e e tto so maeil mila i g o si n ,()i c n e to
r v s : ) tra se r sn ain r tral se d n miso s 2 n o n ci n
(
y
wih t e p r h s o s l ofs c rt s ( )ma e wi s in e '
t h uc a e r ae e u ii , 3 d t ce tn'SEC v Go l,6 2 F.d 9 4
e
h
. be 8 3 3 ,
3
l ppl he a e l t nda d or
9 2 4 ( 1h Ci. 01 )(ntr a q oain o te )3 Iwila y t s m e l ga sa r f
4 - 3 1 t r 2 2 i en l u tto mitd .

h ern
A. n . . tr l s u c s f n e u cl h .4 7 S.
,
3 l a c r a c wi Ch v o ,US. l c v Na u a Re o r e Dee s Co n i J c, 6 U .
2 n c od n e t
8 (1 ,t Cour s ddef t a a ncy' i e eai ofsauor lnguagede l d
37 984) he
t houl er o n ge s ntmrtton ttt y a
veope
t r u hr lma iga c s- y c s a j d c to wh n Co g esh sg v nt ea e yte
h o g ue kn nd a eb - a e du iain e n r s a i e h g nc h
a t rt t a miitrtesau e Ma a igo v O fc o . tr e Ge .2 1F.d 1 2 ,
uhoiy o d n se h ttt . z re s . f îe fUS Ato n y n , 4 3 3 0
1 2 n. ( 1hCi. 01 Cl de Ch v o s r Co g e si asaut ha n t p k n
3 7 4 1 t r 20 ) un r e r n whee n r s n tt e s o s o e

u a iu u l o a ise tei epeaino tesaueb a a e c e tldt a nse i
n mbg o sy n n su ,h nttrtto fh ttt y n g n y nie o dmiitrt
t
i e tte t de e e es l ngasi l r as
s n ild o f r nc o o
t s e onabl Che r de e enc m a be a id t a nc
e. v on f r e y
pple o ge y

itmrtto sa ve a tlo g f r la j iain.) Co g e sg a tdteCF t e
n e eain ni d tlr u h o ma dudc to ' . n r s r ne h TC h
'
a t o i t p o laer lsa drg lto sf rS cin6 c( ) s e7U. C. 9 1, n t
u h rt o r mug t u e n e u ai n o e to ( )1, e
y
S. j () a d o
e o c teS ci n s e7U. C. 9 4 ( . d risa to i ,heCFTC is e Commiso
nfr e h e to . e
S. j ( )A) Un e t uh rt t
y
su d
sin
Re a i 18 1. CFTC' r i nc on SEC Rul 1 5 a a sr s bl
gulton 0. The
S ela e
e 0b- ppe r ea ona e.
3 TheSEC i no r quie t pr ver la e,da ge ,a l sc us ton. e Gobl 682F.d a
3
s t e r d o o ei nc
ma s nd os a a i Se
e,
3 t

943( ttonsomitd)
ciai
te .
46

v oainso Se to 6 c ( )o t Ac . c r igy, h CFTC mu tp o et a Hu trW ie
i lto f cin ( )1 f he t Ac o dn l t e
s r v h t nt s
ma e( )mae ilmir p e e tt nso mae ilymila ig o sins ()i c n cin wih
d 1 tra se rs nai r tral se dn miso , 2 n o ne to t
o

tep rh s o s l o s c rte ,3 ma wi s ine .
h u c a e r ae f e u iis ( ) de t ce tr
h
Bec us 1 f
a e ound t Hun e W ie,t r h M r a r an M r M ari ma ma e i
hat
t r s l oug
z
.J ge d .
tn, de t ral
mir pr e a i a matraly mi la ng om isons wih s e e r ga di t rs oft
se es nt tons nd
e i l se di
si
t cint r e r ng he ik
he
c
ommodii ta a tons l ne o y de e mi whe he i di s i c e i wih t
tes r ns c i ,
ed nl t r ne
t r t d o n omlcton t he

p rh s o s l ofc mmo t s Ag i , u eS ci n 1 ( )o t eSe u iisExc n eAc a d
u c a e r ae o die . an I s e to 0 b f h c rte ha g t n
i
SEC Rul 1 5 as a g de Se ton 1 b)s ii c me i wih' r r me Ss d be
e 0bui . ci 0( ' tn or cton t ' equie nt lhoul

c n tu d n ttc n c ly a d r srci l b tte bl t ef cuae gtlrme ilp r o e o sr e o e h ial n e titvey, u l xi y o fe t t is e da u p s s'
'
2
i en l ai
te .
t c e'
S v Z n f r 5 5 U. 81 ,819 ( 002)(ntr a quottons omitd) The çpurhms' of
EC . a d o d, 3 S. 3
s c iy ma i vea c nge ofowne s p orapr s t pur ha e a s urt See Gobl 682
e urt y nvol
ha
rhi
omie o c s ec iy.
e,

F. a 946.A def nda who a c pt d paymenta t n f ie t delver t s c iy t a
3d t
e nt
ce e
nd he a ld o i he e urt o

c so ri la l u e Ru e1 b 5 I (ii Grp v Pea z , 5 F.d 1 8 1 2 -4 ( 1h
u tme s ibe nd r l 0 - . d.ct
ng ipo . r z o 3 7 3 21 , 2 3 2 1 t
Ci.2 0 ).Th Co r ma lo t wh te te d fn a ts a to % ud . .i a ta
r 0 4) e u t y o k o eh r h e e d n ' ci n t l . mp c n
wo

iv so ' d cso t p rh s asc i '1 k e as S v T x Gu uph rCo,4 F.d
n etrs e iin o uc ae eurt ' d s e lo EC . e . fs l u . 0l 2
y.
hol ng ha
e 0b- ol i
ss k
whe ver s e to r
83 8 ( Ci.1
3, 62 2d r 968)( di t ta Rul 1 5 vi aton exit t ne a s rinsa e

ma e. .namn ne r ao bl c lu ae t iiu n et eivetngp l '
d .i
n r e s na y ac lt d o n e c h n si ubi ).
c
I t c
n he omm o te c ext 1 m us de e m i whe he Huntr W i e s conduc was i
dii s ont ,
t t r ne
t r
e
s'
t
n

c n e to t t rti c so r 'd cso t e trit t es j c ta s cin . eCF h s
o n cin o he eal u t me s e ii n o ne no h ube t rn a to s Th TC a
pr n t t Hu e W ie m a eo l s m ir pr s nt tons a dec ptve o isons i
ove ha
nt r s
de unte s s e e e ai
nd
e i
m si
n
c
onne ton wih t s e oft pr i me as Asm e i d a
ci
t he al
he ecous t l.
ntone bove,Hunt W ie t ough M r
er s , hr
.
M a tn,M r J ge ,isr pr s nt tve ,a t doc
ri
. a r t e e e ai s nd he ument i pr ded t is de l r a s ntt
s t ovi
o t a e s nd e o

r ti c t e s confr e f lel t t i ha physca m e as f is cusomer an f ie t
ea l usom r ,
im d a s y ha t d
i l t l or t
t
s d al d o

47

dicos Hunt rW ie' i veme i t s me.Hu e W ie f ie t di cos t ti onl
sl e
e
s s nvol
nt n he che
nt r s a ld o s l e ha t y
ha ç pe e re ' r r ng is i nt y. Furhe , is doc e s a tani m aeral
d s r nti s' ega di t nve or
pa
t r t
um nt nd r i ng t i
fa e l cai d s e s i t s ta a tons e n whe Hun e W ie' own ac ountng
r udulnty l me ucc s n he e r ns c i , ve
n
tr s s
c i
s
howe t tove 90% ofisc t e swe e l i m one Hunt rW ie mir pr s nt t r t
d ha
r
t usom r r osng
y.
e
s se e e ed he a e
of r t n a rs of t ta a tons Vi i s of Hunt W ie' s heme tsii d t t t s
e m' nd ik
he r ns ci . ctm
er s s c
e tfe ha hi
i or i woul ha i l nce t r de ii t pur has c modii s Ther f es t
nf maton
d ve nfue d hei c son o
c e om
te .
e or he
CFTC' a lga i s tsy t ç nco c i wih' r quieme .
S le tons aif he ' nne ton t ' e r nt
i
Acc di l t CFTC ha m e is bur n i pr ng Hunt r W i e i la e f fa
or ng y, he
s tt
de n ovi
e
s s ibl or r ud

u e S cin6 c ( )o teAc a dCo si nRe uain 1 0..
nd r e to ( )1 f h t n mmiso g lto 8 1

C.Se t 1 a o h Ac - dn an etn t Vilto o heAc
ci 3() ft e t Aii g dAb t g he oa lns ft t
on
i
Co Thit n oft Compl i ca mst tHunt rW iea de a a tedt vi a i
unt ree
he
ant li ha
e s i d nd bet he oltons

oft Ac t twe e c
he t ha r omm it by ot rdef nt i t i tntma tr The e o e,be a e of
ted
he enda s n he nsa
te . r f r c us

Hu trW ie sa to s i i la l u d rSe to 1 ()o t eAc. U. C. 1 c a . dee d n
ne s ' ci n ,t s ibe n e cin 3 a f h t 7 S. j 3 () A fn a t

wil ef u dla l i i é no ngya s cae (tef wi a u lwf l e t r , riiae i i
l b o n ibe f t t wi l so its is l t n na u v n u e pat p t s n t
k
q h
c
t b i i a o t a d s e sb g s a to st ma i s c e d. CFFC v T ii Fi.Gr , n .
o rng t b u , n e k y i ) cin o ke t u c e '
t
'
. rnt n p.I c,
y
1 9 W L 8 0 7 ( D. l . p . 9, 9 )(n en l u tto o te ) r v' onote g o n s
97
2 9 0 S. F a Se t 2 1 97 itr a q oains mitd , e d
hr rud
s b n m. C v Sioi 1 8 F.d 1 3 ( 1h Ci.1 9 ) s eas Bo c v S r a t 8 6 F.d
u o CFT . d ts 7 3 1 2 1 t r 9 9 ; e lo s o . e h n , 3 2

2 ,2 9 (t Ci.1 8 )(i dng t tscin 1 () lk i ci n llw,ûe u rs n to l
71 7 7h r 9 7 fn i ha e to 3 a, ie n rmia a ç q ie o n y
r
kn wldg o t ep icpa' o j cieb t d sr t hephm ati i'.
o e e f h rn i ls be t u a e ie o l i tan t)
v
'

48

()
1

Prmar Vi aton
i y ol i

Th Co r f u dp e iusy ta Lly sa t De lrDee a t voltd S cin 4 a
e u t o n r vo l h t o d nd he ae fnd n s i ae e to ()
3 Ll yds a t d a Hun e W ie' i e medir i t s he e. I a e e t
4 o
ce s
t r s s nt r
a y n he c m
t cc pt d he
o t Ac .
f he t
i f nnai n a f
n o to nd unds t De e De e nt obt i fom t r t l c t r i t s
he alr f nda s aned r
he eai usome s n he e
c
omm o te ta a tons a s r d t m wih Huntr W ie.The De e De e
dii s r ns c i
nd ha e he
t
e
s
alr f ndan s heped
t l
f t r Hunt r W ie' s he e by ma ng matra mir pr enttons and f lng t dic os
urhe
e
s s c m
ki
e il se es a i
aii o s l e
ma e ili or ton t t r t i c t e s whom t y s i t f rHun e W ie.
t ra nf ma i o he e al usom r ,
he olcied o
tr s

()
2

Ai ra dAb to ' Kn wld o h Prma y Voa in
de n et rs o e ge fte i r ilto

M r M a tn a M r J ge ca m t y we e i c r e oft e s heme.l a e- i boasi
. ri nd . a r li he
r n ha g
h c
n n ma l
tng
a utHunt rW ie' busnes , r J ge e aned t tHu e W ieS nvesor ar notplye si
bo
e s s i s M . a r xpli ha nt r s t
i t s e
a r n
t c i i t adt y own t c i ...Putanot rway,ouri sor a e notbeti on t
he asno, nse he
he asno.
he
nve t s r
tng he

h re ;weo ter c ta k (i) Th p i i t a wec nr ltep o e s a d sa dt ma
o ss
wn h a e r c sc . e ont s h t o to h r c s , n tn o ke
mo e n matrwh r t emak t s it'E- i fo J g rt Pa d r Pa g tu e 1 2 08
ny o t
e e e h r es hf. mal r m a e o n o a n l n , 0 )
'
(
CFTC Ex.1 0 a 1 . n e W iematr n e a d fcl ae ti p o e so c e tn rti
8 t ) Hu tr s semid d n a ii td h s r c s f h aig eal
t
cust er
om s.

M r J ger a M r M ari s m t a g t t b a e t r Deaer Pur ha e & Sa e
.a
nd .
tn ee o r ue ha, ec us hei
l
c s
l
Agr e
e ment a t Deaer Loa Se urt & St r
nd he
l
n, c iy
o age A g e m e dicli
r e nt s amed a a ncy
n ge
r a i hi t y ar notlabl f as itng t De l rD eenda s i vi a i t Ac .The
eltons ps he e
i e or ssi he a e
f nt n oltng he t
y
cli t tt De e Def nt ha c
am ha he alr enda s d ompl t a onom y o rt i i t r c i wih t r t i
ee ut
ve her n e a tons t he e al
c t r .The e de pr s nt a ti lexpos st i r ntf l i i t i a gument.An
usome s
vi nce e e ed t ra
e he nhe e alaces n he r r
s
age y r l i hi does not ha t e s t fnd Huntr W ie la e f s t matca l
nc eatons p
ve o xit o i
e
s ibl or yse i ly
3A
4

td pr vi l on Fe ua y 5,201 t Cour e e e aCons ntOr ra t Ll .
e e ousy,
br r
4, he
t nt r d
e
de s o oyds
s no

( 25 ) Th Co t lo e tr daCo s n Or e a t ( )Ne rd e( 2 9 a d( )USCT
DE 4 . e ur as ne e
n e t d r s o 1 wb ig DE 8 ) n 2
( 28 ) TheCo r s al n e d fulj d me ta ans CD Ho k n a dBlc so eu d r
DE 8 .
u t h le tr ea t u g n g i t
p is n a ktn n e
s pa a eOr r
e r t de .
49

de r udi t i downsr n cusom e s outoft rf .I f c st De e De e nt ha t
fa ng her
te m
t r
hei unds n a t he alr f nda s d o
i or Ht e W ier pr s nttvesoft rr t i c t e s i talta . sr quie twa
nf m mt r s e e e a i
hei e al usom r ' nii r des Thi e r men s

s bec e ar t i c t e ' ac ot c d notbe c eae untlHun e W i e s tt prc a
o aus ea l usom rs c mt oul
r td i
t r s e he ies nd
rci t f
e eved he unds.

Oneo t S e t e' t tHu trW ieo fr d wa ta i wo d i e e ae)alta e
f he ç aurs' ha n e s fee s h t t ul ' n rt l l r d f
g
r l t d c t m e c r e ponde es unde a t hie La 'a r ng m e ....As a a d bonus
e a e uso r o r s
nc
r W t bel r a e nt
n dde
,

b t (h )De lra d Cle tPo tl a e as b a d d wi (h De lrs c mp n n me a d
oh te ae n in ras r lo rn e t t e ae ') o a y a n
h
l ' Huntr W ie s De e Pora Us r Gui e,CFTC Ex.1 a 4.Thr h Hun e W ie'
ogo.
'
e
s ' alr tl e
d
26 t
oug
tr s s
mant na oft poralwe ie,t ough whi h Hunt W ie g r t d a s ntdoc e st
i e nce he t
bst hr
c
er s ene a e nd e
um nt o
t r t i c t e s Hun e W ie wa a e t l d c t r i o bei vi t e we e metl
he e al usom r , t r s
s bl o ea usome s nt le ng her r
as

so e o t erb h l. rn hsd p iin,Mr M a o d a n n p ry d ae i ti matr
t rd n h i e af Du i g i e osto
. wj o , o - a t e lr n h s t ,
e

c n me ho de e tv t i i ht La l fau ewa i ta s ci n . r M a o d sae
o fr d w c pi e h s t i be' e t r s n r n a to s M . wj o ttd,
W e
'
ç r --eve y ie t tges s ntoutt y i vi lci nt uli ael c e fo Hunt r
i y
Eve
r tm ha t e
o our ndi dua le s tm t y om s r m
e

W ie' M a o d De .( 1 - a 1 0 1 - 8 .Ev n mo e tli g M r M a o d noe ,:
s . wj o p DE 91 1 t 7 :6 1 ) e r eln , . wj o td 1
'
1
neve unde sood why t woul us Blc t M et s Gr
r
rt
hey
d e a ksone
al oup o a ot r na e be us
r ny he m , ca e

whe ve we woul as t tquesi i t e i' Hun e W ie t tsdoi i,a t tswhy
ne r
d k ha
ton, n he nd ts t r s ha ' ng t nd ha '
lne unde sood t t'1 a 1 18 175:22.
ver
rt
ha - d. t 74: '

Mr M a o d as tsi d ta Ht e W ie wo l s tte i tr s a u t o t e
. wj o lo e tfe h t mtr s ud e h nee t mo n s n h
pum ore l nsa f e Hunt rW ie a t De l rDe e nt woul c r r t i c t e s
td oa nd e s
e s nd he a e f nda s
d ha ge e a l usom r .

f a 1 17 (ttng t fes wee st i Hunt W ie die ty.And t n whae r i
#. t 34:- sai hat e
r e '
by
er s rcl
he
tve s
c
ommuni t ( ac t M eal Gr owne Bai Kesr woul pr bl ha ag e dwih
caed, Bl ksone t s oup
r rs e!
d oba y ve r e t
i'.HuntrW ie kne t tt De erDee
t'
)
e s
w ha he al
fndant wee l ng t rti c tmes a i wa
s r yi o eal uso r, s t s
HuntrW iet c eaed t f r sa ma e ilt Deae D e e
e s hat r t he o m nd t ra he
lr f ndan sus d t do s
t e o
o.

50

(
3)

Ai randAbet I e i l As itd i t Prmar Vi aton
de
tor ntntonaly sse n he i y ol i

Syl a W ilams a f m e br rde l ri Hu e W ie' s heme,a Fr k Ga no,
vi li , or r oke - a e n nt r s s c
nd an
udi

owne of Ll , Hunt r W ie' i er di r bet e i and t De e Def da s bot
r
oyds
e
s s nt me a y we n t
he alr en nt, h
t tfe t how Hunt rW i ehel a m a ed t s he e.M s W ilams r c ve ai fom
esii d o
e
s
ped nd nag he c m
. li
e ei d d r
Hun e W ie s r pr s nt tve on how t esa ih a f e g c por ton s t ts c d be a
t r s ' e e e ai s
o t bls
or i n or a i o ha he oul
Huntr W ie br - alr i Fl i M s W iln s t si d t ther compan de nded on
e
s okerde e n orda. . lim e tse ha
y pe
Hun e W ief isan im one lt erng docume s c
t r s or t ty amd i
nt , ompla manua s and r l t s r c .
ince
l,
e aed e vies

W i imsTe tmo y F b 2 , 4 ( 3 0a 2 1 - 3 . ee p an dt a h rc mp n o l
la
l
si n , e . 7 201 DE 0 t 4:6 2 ) Sh x lie h t e o a y n y
ha a oxi ae y $1 000 i c pia be aus Hunt W ie r ceve a 1oft r ti c t e s
d ppr m tl 00, n a t l c e
er s e i d l he ea l usom r '

mo e a d s e ç ud rq e ta wie b s n b c ta wa d e b c t (e )a fra t
ny n h t l e us
wo
r e e t a k h t s u a k o h r s a s he
c
omm iso a t s r c a a i e e t'1 a 3 1 3.M r Gaudi ts iid a
s i ns nd he e vie nd ny ntr s . d. t 0: '
.
no e tfe boutl ng
ooki
t Hunt rW iet pr vi t s r ce Ll
o
e s o o de he e vi s oydspr
omot d a isown.
e st
Thes wines e des rbe how Hunt r W i e s co
e t ss
ci d
e
s ' nduc no onl ai t De e
t t y ded he alr
De e
f ndant' vi ai ,but c r le t i a lt t e c e t m as we l W ihou Hunt
s ol tons
onto ld her biiy o xe ut he
l. t t
er
W ie' hel t De e De e nt woul nothavebee abl t c att vi i si t sa ton.
s s p, he alr f nda s
d
n e o he he ctm n hi c i
As t la oft s he Hunt rW ie di mor t n whatis agr eme s wih t de l r
he e der he c me,
e
s d
e ha
t
e nt t he a e s
d c i d.W hie Huntr W ie s ght t hi be nd t c ti of is deaer ,t e de e
es rbe
l
e
s ou
o de hi he ura n
t
l s he vi nc
s
howsHunt rW ie wasc uci t e ie or hesr .I ed,t de e splye t t e t
e
s
ond tng he ntr c ta nde he alr a d o h une
Hunt W ie c e,a isdieci Now i r us t f c t musc.
er s hos t t r ton.
t ef es o a e he
i
Ac or ngl t CFTC ha m e is bu de i pr ng Huntr W ie i la e f r fa
c di y, he
s t t r n n ovi
e
s s i bl o r ud

unde Seci 13()oft Ac .
r ton a he t

51

D. Co r lng Per ons
ntoli
s

The CFTC s ks t hol M r J ger a M r M a tn labl f Hunt r W ie' c
ee o d . a
nd . ri i e or
e
s s onduc
t

b c u et y c nr le t ec r rto I my Fe r m' 1 ,2 4 Or r( 2 ) Ifun M r
e a s he o told h opoain. n
b u y 9 01 de DE 81, o d .
J r a M r M a tn labl a c r lng pe s ofHunt W ie.Ac or ng,15nd t t y
age nd . ri i e s ontoli
r ons
er s
c di
hat he

aela l u d rSe to 1 cb , U. C. 1 c b a t Co n sTwo Th e , n Thre n o te
r ibe n e cin 3 () 7 S. j 3 ( ) s o u t
s r e a d ite f h
Co an . e to 1 cb e pli :
mplit S ci n 3 ( ) x ans
Any pe s who,diecl ori r ty,con r s a pe s who hasvi a e a
r on
r ty ndiecl
tol ny r on
olt d ny
pr son oft scha e ora oft r es r l tons oror sis pur ua
ovii
hi
ptr ny he ul , egu a i ,
der s ued s nt
t t scha e m a be hed la e f rs h vi a i i a a ton br
o hi
ptr y
l ibl o uc ol ton n ny c i
oughtby t
he
Comm ison t t s me extnt as s h c r ld peron.l s h a ton,t
s i o he n
e
uc ontole
s
n uc ci
he
Commison hast bur n o pr ng t tt c r lng per on di nota i
si
he de f ovi ha he ontoli
s
d
ct n
good f ih or knowi y i ed, diecl or i r c l t a t o a t
at
ngl nduc
r ty
ndie ty, he e s r c s
c tt i t vi a i
onsiutng he olton.

7U. C.j 1 cb) Th Elv n hCic i h sn tdt tSe to 1 ( )o teAc i l b u p r
S.
3 ( . e e e t rut a oe ha cin 3 b f h t s t o t owe
a
a i
nd mposng la lt f t e who f lt e r s i t p e ntil ga co
i ibiiy or hos
ai o xe cie t o r ve le l nduc . R. Fiz al
t' J tger d
'

& Co. 31 F.d a 1 4.The % u m e t pur e'of t sa ut i T o r c be nd t
s 0 3 t 33
d nda n al pos '
f
he t t e s t ea h hi he
t
c or t e iy t t co r lng i vi s o t c m or to a t i
om ae ntt o he ntoli ndi dual f he o ai n nd o mpos la lt f
e i biiy or
vi atons of t Ac diecl o s h i vi s as wel as on t c o a i is l 'f
ol i
he t r ty n uc ndi dual
l
he om r ton t e f' #.

5 7 1t r 9 5
d r ci 3b , o
o
( tng JCC,I .v CFFC,63 F. 1
quoi
nc .
3d 557,1 6 ( 1h Ci.1 9 :.Un e Se t n 1 () t
de
monsr t t ta i vi lde e ntha c r ove t e iy r r t CFTC t s
ta e ha n ndi dua f nda
d ontol r he ntt equies he
o how

t c n r l n id vd a:()h d c nr la d ( )lc d g od fih o k o n l id c d t
he o tol g n i iu l 1 a o to n 2 a ke o at r n wigy n u e he
i
a t c n t ui te v oain.S e 7 U. C.j 1 cb ;I r Fis Na ' T a n Cop. ( 9 2cs o si t h i lto e
t ng
S.
3 ( ) n e r t t1 r dig r , 1 9

1 9 Trn f rBid r Co F t L. p.CCH)2 1 2, t417 7 ( TC J l 2 s1 9 ) afd
9 4 a se n e) mm. u . Re (
6,4 a ,8 CF uy 0 9 4 , f '
wihouto ni s nom.Pi v CFFC,9 F. 1l ( h Ci.1 .
t
pi on ub
, ck .
9 3d 39 6t r 996)
Ast t frtpr ng,t esa ih co r ,t CFTC mus s
o he s o
o t bls ntol he
t how t i vi lpos e s d
he ndi dua
ss e
ge r con r o rt o r ton oft e iy prnc pal la e SeeR. Fiz r l (rCo.31
ne al tol ve he pe a i
he ntt i i ly ibl .
J tge a d f , 0

52

F.d a 1
3 t 334.The Cour m a fnd c r exit whe e e de e de onsr t st tt i vi l
t y i ontol ss
r vi nc m ta e ha he ndi dua
i a of e ,f
s n ic r ounde ,prncpa ,ort a horz d sgna or on t c pa sba k a ount.Se
r i i l he ut i e i t y he om ny' n cc s e

I r S e l ( 9 7 1 9 Trn frBid r Co Fu . Re (
n e pige, 1 8 - 9 0 a se n e) mm. t L. p CCH)2 1 3 a 3 6 (
4,0 , t 47 7 CFTC
Jn.1 1 ,Ast t s ond pr t CFTC mus s t i vi leiherlc good
a 2, 988) o he ec
ong, he
t how he ndi dua t a ked
f ih or knowi y i
at
ngl nduce t ac s To e t bls good f ih,t CFTC mus s
d he t .
sa ih
at he
t how t t t
ha he

i vi f ie t m ant i a d ea onabl a quat s t m ofi er ls vii and contol'
ndi dual al d o i an t s
r
y de e yse
nt na uper son
r'
ordi noto s t s t m çwih a r s na e diienc 'M oni s v CFFC,9 F. 852,
d
veree he yse l t ny ea o bl lg e.
'
e on ,
96 2d

8 0 (t Ci. 9 )( uoigHa rs nv De n WitrRe n ls f c, 7 F.d 8 3 8 1( t Ci.
6 7h r 1 93 q tn r io . a t y o d , n .9 4 2 7 , 8 7h r
e
1 9 ). etbih t e4 n wig id c me 'ee n ,te CF h st b r e o s wi
9 2 ) To sa ls h 4 o n n u e nt lme t h TC a he u d n f ho ng
k
'
t t t he c r lng per on ha a t l or c t u tve kno e of t co e aci te t
ha i ontoli
t
s
d c ua
onsr c i
wl dge
he r tviis hat
c tt e t vi a i a is a alowe t m t c i .'JCC,I ,63 F. a 1 68
onsiut he oltons t s ue nd l d he o ontnue'
nc.
3d t 5

( i I r S e l 24,03, a 34, ) Conr lng pes c nnot a d la lt by
quotng n e pige, 1
t 767 . toli
rons a
voi ibiiy
d i ael orr ckl sy avoi ng kn edgea tpot i wr
elbert y e es l
di
owl
bou ental ongdoi I r S e l 24, 03,
ng. n e pi ge , 1
a 34,
t 767.Cours ha f
t ve ound t c tuc i knowldge of wr
hat onsr tve
e
ongdoi i s ncent f a
ng s uf i
or

fndi of knowi i e
i ng
ng nduc ment Se JCC, I , 63 F.d a 1
. e
nc.
3 t 568. To s
uppor a fndi of
t i ng
c tu tvt knowldge,t CFTC mus s
onsr c i
e
he
t how t ta de e
ha
f ndantç a ke ac ua kno e o y
l c d t l wl dge nl
l

b c us hec n co l a ie i. I a 1 6 ( i to so te .
e a e o s iusy vod d t'd. t 5 9 ct in mitd)
'
a
The CFTC ale s t tM r J e a M r M ari co r ld an knowi y i e t
l ge ha
. ag r nd . tn ntole d
ngl nduc d he
c
onduc of Hunt r W ie.M r J rwas t Chaiman and Chi f Exe i Of erof Hun e
t
e
s
. age
he
r
e
cutve sc
tr
W ie,a M r M a tn was t Pr sde a Chi f Opt ai Ofi er Alhough M r M a tn
s nd . ri
he e i nt nd
e
r tng tc . t
. ri
ove s w t da t da busnes ope a i , M r J ge ' poston wihi Hu e W i e
r a he y-o- y
i s
r tons
. a rs
ii
t n
nt r
s

d mo srtsh h d k o e g o a d ç ie te )t e on mi a p cs'o t e tt Apac
e n tae e a n wld e f n s rcld he c o c s e t' f he niy. he
d
T a n Cop.(9 0 1 9 Tr n f r Bi d r Co
r dig r 1 9 - 9 2 a se n el mm.F t L.Re (
u.
p. CCH) 252 ,a 3 ,9
,51 t 87 5

53

(
CFTC Mar 11 1 2) Bot i vi l weea horze t an di e e it agre nt wih
. , 99 . h ndi duas r ut i d o, d d, ntr no e me s t
t Supplvr f Hunt r W ie' m a gi ta ng ta a tons I sgni t a e m e s a
he
i s or
e
s s r n r di r ns c i . n i ng he gr e nt nd

ta ng wih t Supple s M r J ger a M r M a tn we e a r or pu pos l a de
r di
t he
ir , . a
nd . ri
r wa e,
r ey voi d
be m i a r t tHun e W iedi no own o a quiet c modii .Furhe mor Hunt r
co ng wa e, ha
tr s d t
r c r he om
tes
t r e,
e
W ieco e i or e M r M a tn a M r J ge oft dif r nce be we owni me a f ly
s uns l nf m d . ri nd . a r he fe e s t en
ng t l ul
a t ofs tta ng Huntr W ie wasc uci wih t Supple s As s h,lfnd t tt
nd he f e r di
e
s
ond tng t he
ir .
uc
i ha he
CFTC ha metisbur n i s
s
t
de n howi t tM r J ge a M r M a tn c r l HuntrW ie a
ng ha . a r nd . ri ontoled
e
s nd

k o ngyid c dHu trW iet vo aeS ci n4()o teAc .
n wi l n u e n e s o ilt e to a f h t
I
V. RELI REQUESTED /DAM AGES
EF
Bec us Hunt rW ie c
a e
e
s omm it d fa and a d ot s i vi a i t Ac,t CFTC
te r ud
i ed her n oltng he t he
s e a Cour or ra horzi ( )ap r n n ij n to a d ta ig a dr gsrto ba ()
e ks
t de ut i ng: 1 e ma e t nu cin n r dn n e itain n;2

rsiuin;a ( )a Cii Mo e Pe at (é P' a ans Hu trW ie M r J g r a d M r
e t t nd 3
t o
v l n y n ly i ' g i t n e s , . a e , n
CM )
.
M a tn.
ri

A.Pe ma n I j ncin a d Tr d n an Re sr to Ba
r ne t n u to n a i g d gita in n
The Ac alows a ditit c t t
t l
src our, i
upon a pr r s
ope howi ' t g ant a pe m a nt
ng, o r
'
r ne

ij ncin.CFF v Wi hie Iv Mgmt Cop. 53 F.d 1 3 , 1 4 ( 1h Ci.20 8 .I
n u to
C . l r n.
s
. r , 1 3 3 9 3 6 1t r 0 ) n

rv e n t e g a to a ij n to ,çh ut t ts . .i wh te t dee d n' p s
e iwig h rn f n nu cin i e lmae e t . s eh r he fn a ts a t
t
i
c
onduc i c t s t tt r i a r s bl lkelhoo off t vi ai i t f t e' 1
t ndia e ha he e s ea ona e i i d
urher ol tons n he u ur .' d.

(n en lq o ai no te )(iig Sd t,1 8F.d a 1 3 ) S e i al,t f l wi f co s
itr a u tto mitd ctn io i 7 3 t 1 7 . p csc ly he ol ng a t r
o
s dbe c i r
houl
onsde ed:

( h e r go n s o ted fn a tsa to s t ioae o r c re t au eo
T) e ge ius e s f h ee d n ' cin ,he s ltd r e u r n n tr f
t i r ton,t de ee ofs i t i ol d,t snc rt of t de en nts
he nfaci he gr
cen er nv ve he i e iy
he f da '
asur nc a ns f ur vi ai ,t de e ntsr ognii oft wr ul
s a es gai t ut e ol tons he f nda ' ec ton he ongf
nat e of hi c
ur
s onduc ,a t lkelhood t tt def nda ' oc upa in wil
t nd he i i
ha he e nts c to
l
pr s n opporunii sf f ur vi a i .
eet
t te or ut e oltons

5
4

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 c
o he is nd e ond c i r tons,Hunt W ie' c
onsde a i
er s s onduc was eg egi a
t
r ous nd
r c r nt Fo o a y ra a haf Hun erW ie ma ma e i lm ir pr e a i a tt
e ure . r ver ea nd
l, t
s
de t ra se es nttons bou he
pr ci me a ta a i ,t rs i ve and t s c s oft i smen ,whie,a t
e ous t l r ns ctons he ik nvol d,
he uc es
he nve t t
l t he
s m etm e usng t f
a i , i he undst buy pr i m e as fom t Supple son isown be f Hunt
o
ecous t l r he
ir
t
hal.
er
W i edi no us t r t lcuso e s fmdsa t y we e s
s d t e he eai t m r ' h
s he
r uppos d t beus d:t buy pr i
e o
e o
ecous
me a son t rbe fwih l ns Aslnot pr vi l t s he e M r J era M r M ari
tl
hei hal t oa .
ed e ousy, he c m
. ag nd . tn

de l
veoped wascac aed t dec i r t lcusome s
lul t o e ve eai t r .
The e de e t CFTC pr e e a tilde onsr t s t tHunt W ie a t d wih a
vi nc he
es nt d t ra m ta e ha
er s c e
t
hih de e o s i nt r I wasawa et ti wasmi ladi isdownsr m c t
g gr e f c e e . t
r ha t
se ng t
tea usomer ,ha i wa
st tt s
notaloc i t f ds t pur ha e pr ci m ea s on t r t lc t r 'be l,t t is
l atng he un o c s e ous tl
he eai usome s haf ha t
tani a pr
r i ng nd omotonal m aera we e wr
i
t il r
ong, a t no l
nd hat
oans we e dibu s d t t
r s r e br he
c t r .l s ppo td a c r l t Dea e Def nda sa Ll
usome s t u re nd ontoled he
l r e nt nd oyds i t rs i iaton of
n hei olct i
r t i c t r , o ac mi son, ndr eved f esfom e r cusome t twa m il
e a l usome s t ok om s i a ec i
e r
ve y t r ha s sed.
Furhe
t nnor M r J ge a M r M a tn ha no r c z a wr doi The
e, . a r nd
. ri ve t e ognied ny ong ng.
lke i
i lhood off lr vi a i i sr ng,es i l be us M r J gera M r M ari a gue t t
utze oltons s to
pecaly ca e . a
nd . tn r
ha
t ic
her onduc i defa ng r t lc t
t n r udi eai usomer outofmilons ofdola s wasl gii a e a bot
s
li
lr
e tm t nd h
we e a r of M r M ari s Uni tCons ntOr r pr bii t e tf a he c mit d
r wa e
. tn'
me
e
de ohi tng he xac r ud
om te
he e.
r

Th r fr ,Ifn t a a p r n n ij n to i a p o rae b c us Hu trW ie Mr
ee oe id h t ema e t n u cin s p r p it e a e ne s s .
J ge ,a M r M a tn' a tonswe er peae c lous a blt nt
a r nd . ri s c i
r e td, a l , nd a a .

55

B. Re tt l n /Digor m e
s iuto
s ge nt

y
The r c d c anss scente de oft l s fo Hunt rW ie' a i ns.5Onl
e or ont i uf i vi nce he os es r m
e s s cto 3

sx y-ou c t e s out of 3, t a cusom e s a e a pr i durng t i ta a tons
i t f r usom r
283 otl t r chived
oft i he r r ns c i
t r h HuntrW ie bewe J y 1 2011an Fe ua y 25,201 Hun erW ie,o t o he
h oug
e
s t en ul 6,
d br r
3. t
s n he t r
ha be fte gr a l fom t eta a tons.
nd, ne it d e ty r hts r ns c i The CFTC s ksr tt i fom Huntr W ie
ee esiuton r
e
s,
M r M ari a M r J ge f rpr ma el c usng t e r t i cusomer 'l s .
. tn, nd . a r o oxi t y a i h e al t
s os es

UnderSeci 6( oft Ac,t Cour i a horz d t or rr tt i See7 U. C.
ton c) he t he
t s ut ie o de esiuton.
S.

j1 a 1 S cin 6 c alwsteCF t r q e te ia er me e ' n a yp ro f n i te
3 - . e t () l h TC o e u s qutbl e dis l n e s n ou d n h
o
o
o
a i t hav c mitd any vi aton,'i l ng;
cton o e om te
ol i ' nc udi

( rsiuin t p ro swh h v s sane l s sp o i tl c u e b s c
A) e t to o e s n o a e u ti d ose r xmaey a s d y u h
t
voain(nt ea u to s c l se ) a
ilto i h mo n f u h o s s; nd
( d s o g me to g i rc ie i c n e to wihs hvo ain.
B) ig r e n f ans e ev d n o n cin t uc ilto

7U. C. 1 a 1d ()
S. j 3 - ()3 .
The s t m ai a pe v i na ur ofHunt rW ie' fa ne es ia e r siuto not
yse tc nd r asve t e
e
s s r ud c st t s e tt i n

o y f t r t lcusome s who t si d t t l s s t y s t ne due t Huntr W ie'
nl or he eai t r
e tse o he os e he usai d
o
e
s s
s he e butf r a1ofHunt rW ie s c t r aswel.Hunt W ie de ope a s he e t t
c m ,
o 1
e
s ' usome s
l
er s vel d c m ha

f ie t d s os ma e i l i o m ai a
al d o icl e t ra nf r ton boutt co modii ta a tons i o whi r t i
he m
tes r ns c i
nt
ch ea l
c t m e s we e e e i Durng t r l va pe i d, Hunt r W ie a t d i t ntonaly i
uso r
r nt rng.
i he e e nt ro
e
s ce ne i l n
de ei ng t r t i c t e s by ge r i and s n ng docume s t t mi r pr s nt a
c vi he e al usom r
ne atng
e di
nt ha s e e e ed nd
o it d i o ma i r gar ng Hunt W ie' ma gi ta ngac ount wih t m ea sSupple s
m te nf r ton e di
er s s r n r di
c s t he t l
ir ,

t l ns Huntr W ie ofe e t hi rs a 1 pa s i ve i t ta a tons a
he oa
e
s f r d, he gh iks nd ow yout nvol d n he r ns ci , nd

3 M r M a tn an M r J rat mpt d t a guet tSpe a M oniorM e a e Da e s
5
ri d . age te e o r ha
cil
t
l ni mi n'
c l ulton oft l s , c t CFTC r i upont c c ae t r t lcusomer 't a
ac ai
he os es whih he
eled
o alul t he eai t
s otl
l s s wasi or e t Afe r vi wi t e de ean t si ony,howe ,lfnd t tt
os e s
nc r c . tr e e ng he vi nc d e tm
ver i ha he
CFTC' c l ultonsa ur t l r l c t l s s t i d byt e r t i c t e s
S ac ai
cc a ey ete t he os es usane
h e a l usom r .
56

Hunt r W ie' owne s p of me a s on t r t lcusome s be l.Hunt r W ie ove s w t
e
s s
r hi
tl
he eai t r ' ha f
e
s
r a he
whol s he
e c me;a c t e ac ou c d notbe c e t d wihou Hunt r W ie' a ova .I
usom r c nt oul
r ae
t t
e
s s ppr l t

r c ie t e rt i c so r 'fmd a d d s e sd t e d aes pr ttsk e n t emao i o
e ev d h eal u t me s t s n ip re h e lr' ois e pig h j rt f
y
t f
he unds f is f W ihout c r tng t ma e i l i or a i r t l c t e s f ce t
or tel. t
oreci he t ra nf m ton, eai usom r a d he
ce ti l soft e mone t y i t d,a over90% oft m di i f c ,l et i f nds.
ra n os
h
y he nvese nd
he d, n a t os her u

The e or I tnd t tr tt i f alr ti c t
r f e, i ha esiuton or l ea l usomerl s i a a o i t r m t
oses s n ppr pra e e dy,

frwhc Hu trW ie Mr M a t , n M rJ g raej itya d sveal la l.
o ih ne s , . ri a d . a e r on l n e rly ib e
n
C. Cii M one Penaly
vl
y
t
Al wih r siuton,t CFTC s ksaCM P a ns HuntrW ie,M r M a tn,a M r
ong t e tt i he
ee
gai t
e
s
. ri nd .

Jg r Th Co r' a to i t i o eaCMP c me fo Se to 6 ( )1, ih p o i st a
a e . e u ts uh rt o mp s
y
o s r m cin c d ( ) whc r vde h t
a m o t r pe t ûn t a ount of not m o e t t hi he of $1 0 o ti e t
ne a y naly l he m
i
r han he g r
00, 00 r rpl he
monear gai 'm a be i pos d f e h vi ai agans a peron f
t y n' y
m e or ac olton i t ny s ound t vi ae t Ac .
o ol t he t

7U. C.j 1 a 1d( )A) The $1 000 a u twa i ra e t $1 ,0 p rv oain a
S.
3 - ( )1( .
0 , 0 mo n s nce s d o 400 0 e i lto , s
a j se frifain. e 1 C. R.j 1 .. edsrc c u tsi o ion o t cvlp nat
d u td o n lto Se 7 F. 438 Th itit o r' mp st f he i i e l
i
y
mus beç ai ly r lt t t ofe teha ge o t ne d f detr e e. CFTC v Le y 5
t l tonal ea ed o he f ns
r
r d r he e or e r nc '
'
. v 41

F.d 1 0 ,1 1 ( 1hCi, 0 8 .
3 1 2 1 2 1t r2 0 )
Hunt W iee
er s ngage i a welt htouts he et defa a oxi ael 3, r ti
dn
l-houg
c m o r ud ppr m t y 200 ea l

c t r ,a i r ceve $18, 1964.3 i pr i due t s e d c r s i e es on l ns
usome s nd t e i d
48 , 1 n oft
o pr a ha ge , nt r t
oa
Hun e W ie ne rexe t d,and f e f s r ce Hu e W ie di notpr de.See Su ma y
t r s ve
cu e
e s or e vi s nt r s d
ovi
m r
Exhi t-De e nt 'Fi nc Tr ns c i wih Reai Cusome s CFTC Ex.69.Be us of
bi
f nda s na ed a a tons t t l t r ,
ca e
is c
t onduct a CM P i wa r t d a i t Huntr W ie. The CM P a i t Ht e W ie i
,
s ran e ga ns
e
s
gans mt r s s

$55, 892. whih r pr s nt t pr tofti eHunt rW i e' m o t r gan.M r M a tn
445, 39, c e e e s he oduc rpl
e s s nea y i
. ri

a dMr J g raej nl a ds v r l la l f rt CMP a c n r ligp ro .
n . a e r oity n e eal ib e o he
y
s o to l e s ns
n

57

V.

CONCLUSI
ON
tbls
Ba e upon t Cour' fndi s t f t a
sd
he
ts i ngs e orh bove, t CFTC has esa ihed by a
he

pr ponde a e of t e de e t tHuntr W ie,Ha ol Edwa d M a tn,J . a Fr J ge
e
r nc
he vi nc ha
e
s
r d
r
ri r, nd ed a r
c
ommitd fa a ai d a a te Ll
te r ud nd de nd be td oydsa t De e De e nt i defa ng t r t i
nd he alr f nda s n r udi he e a l
c t mer .Fort e r s ,J
uso s
hes ea ons udgme i du t be e e e i f voroft CFTC ast Co s
nt s e o
nt r d n a
he
o unt
Two,Thr e,and Thit n of t Compl i .J
e
ree
he
ant udgmen wil be e e e i f vo o t CFTC
t l
nt r d n a r f he
a i tt e Hunt rW i eDe e
gans h
e s f ndan sbys par t or r
t
e ae de .
DONE AND ORDERED i Chmnbe s i W e t Pam Bea h,Fl i ,t s
n
r n
s l
c
orda hi
M a 201
y, 4.

D
LD M . I
M DDLEBROOKS
UNI
TED STATES DI
STRI J
CT UDGE
Copist
e o:

Couns lofRe or
e
c d
M elni E. mi Speca M oniora Cor a eM a ge
a e Da an,
il
t nd por t
na r
J A. ng,I,?o s De e nt
ohn Ki lJr e f nda
Cha wik Hopki , o s De e nt
de c
ns rr e f nda

58

da of
y