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

Filing 77

ORDER granting 4 Motion for Preliminary Injunction Signed by Judge Donald M. Middlebrooks on 2/22/2013. (sw)

U N I ED STAT ES D I
T
STR I T CO U R T
C
SO U TH ER N D I
STR I O F FL O RI A
CT
D

Cas No.1 81 - V- l
e
2- 311 CI M DDLEBROO M + M NNON
UNI
TED STATES COM M ODI
TY
FUTURES TRADI COM M I ON,
NG
SSI
Pli if
a ntf ,
VS.

HU N TER W I COM M OD I ES,LLC,
SE
TI
etal,
.
D e e nt .
f nda s
/

O R DER TEM PO M R I A PPO I TI SPE CI CO R PO M TE M O N I R
LY
N NG
AL
TO
TH I CA U SE c e bef e t Cou tu
S
om s or he
r pon Pl i ifU nie St t s Com m odiy Fut e
a ntf
td ae
t
ur s

Tr dn Co sin' (C
a ig mmiso s <
CFTC' M oin frP ei n r lj n to Cç to ' ( 4 ,sld
' to o r lmi ay nu cin Mo in' DE ) e
)
)
De e r6,201 0n Fe ua y 22,201 t Cour hed ahe rng.Ha ng r vi we a1 oft
c mbe
2.
br r
3, he
t l
ai
vi e e d l he
flngsaswelast a gume sa e de epr e e a t he rng, fnd t tt M otoni due
ii
l he r
nt nd vi nc es ntd t he a i I i ha he
i s
t be g a e l t M oton, he CFTC r
o
r nt d. n he
i t
eque t d t 1a poi a r c ve . tt c l i oft
s e hat p nt e ei r A he onc us on he
hea i t epa te pr s nt e s e t t g ve t e di nc e r d unde t c r s a s
rng, hos ri s e e r que t d ha , i n he xpe e yr qui e
r he icum t nce

a t pot nta ha m t t Def nda sbya nt
nd he e i l r o he e nt
ppoi mentofar ceve , ha , las f t pr s nt
e i r t t at e t or he e e ,
Ia ntaSpecal oniori le ofar ce ve .Thepa te a ee t t e r oft i tntOr r
ppoi
i M t n iu
e i r
ri s gr d o he nty he nsa
de

pe ngmye r ofamo ecomprhe i o de on t M oto f Pr lmi r lj nci ne
ndi
nty
r
e nsve r r he in or ei nay n u ton xt
w e k add es i t r m a ni l gali s s
e
r sng he e i ng e s ue .

Page 1 of 14

W HEREASt CFTC a t Entt De e
he
nd he iy f ndan sl r et ta s t oft Entt De e nt
t ag e ha s e s he iy f nda s
s d bepr er d and optonst ma mi t val oft Entt De e nt sope a i a
houl
es ve
i o xi ze he ue he iy f nda s'
r tons nd
as e si i t be ti e es ofcr t s i t s and s r hol soft Entt De e nt;
s t s n he s nt r t
edior , nvesor ,
ha e der he iy f nda s
W HEREASt CFTC a t En iy Def nda sa e t ti i i t i e e tofc edior ,
he
nd he tt
e nt gr e ha t s n he nt r s
r t s
i t s a s r hol r f a exa i tonoft Entt Def nt sfnanc a op i a
nvesor , nd ha e de s or n m nai
he iy enda s' i es nd tons nd
rc
e omme tonsbema t t Courabou at r tve t ma mi et ope a i a aset l
nda i
de o he
t t le na i s o xi z he r tons nd s va ue
oft Entt D e e
he iy f ndant ;
s

W HEREASf t pur eof()pe f mi a ase s ntoft vi lt oft Entt
or he pos a ror ng n ss me
he abiiy he iy
Deenda s ongoi busnes e e prs sa optonsa aler tvesf t f ur oft Entt
f nt '
ng i s nt r ie nd i
nd t na i or he ut e he iy

Def nt a ( rco
enda s nd b) e mmendi t t Cour t a oprae c s ofa ton f t Entt
ng o he
t he ppr it oure ci or he iy
Def nt,t t mpor r appoi m e ofa Spe alM oniori desr e;
enda s he e
ay
nt nt
ci
t s iabl

W HEREAS frt pur e of()prs r i asesoft Entt Defnda sa (
o he pos
a e e vng s t he iy e nt nd b)
pe mitngt Entt De e a st c i nor busne soper tons t tm por r a nt t
r ti he iy f nd nt o ontnue mal i s
ai ,he e
a y ppoi men
ofaCo por t M a
r ae nage i de ia e and
r s sr bl;

W HEREAS t i Co r h s s b e tmatrj rs ito o e t s a to a d p ro a
h s u t a u j c te u idcin v r hi cin n e s n l
j rs ito o e t En i De e d n s a d v nu p o el le i ti dsrc.
u idcin v r he tt fn a t, n e e r p ry is n h s itit
y
Ac r ngl i i he e
co di y, t s r by

l pur esoft sOr , t t nn tEntt Def
For pos
hi der he e ç iy endant' i udes:Hunt W ieCom modii ,
s' ncl
er s
tes
LLC,Hunt W ie Se vies LLC,Hunt W ie Cr t LLC,Hunt W ie Tr ng,LLC,Ll
er s r c ,
er s edi.
er s adi
oyds
Com modii LLC,Ll
tes,
oydsCom modii Cr di Company,LLC,Ll
tes e t
oydsSer ces,LLC,C . Hopki
vi
D.
ns
Fi
nanci ,LLC,Har Ass tLendi Gr
al
d e
ng oup,LLC.Bl t M et sGr
acksone
al oup.LLC,Newbrdge Ali
i
lance,
I ,and Unied St esCa t Tr t LLC.
nc.
t at
pial us ,

Pag 2 of 1
e
4

ORDERED AND ADJUDGED ta te Mo in f rP ei n r lj nci n ( 4 i
ht h
to o r l ay nu to DE ) s
mi
GRANTEDZasf l :
olows
1 A ppoi m entof Spe i M onior and Cor at M a
.
nt
c al
t
por e nager

1 Untlf t ror roft sCour,M elni Da in i he e a ove a a nt d t
. i urhe de
hi
t
a e m a s r by ppr d nd ppoi e o
s r wihoutbondasSpecalM o t a Cor a eM a ge f t Entt De e nt .
e ve t
i
nior nd por t
na r or he iy f nda s
2. cure Boa d ofDiecor a alofi e soft Entt De e nt wilbea lbl
The r nt r
r t s nd l fc r he iy f nda s l
vaia e
t as it nda s t Specal oniorand Com or eM a ge , wil e r ieista tonal
o ss a dvie he
i M t
at na r but l not xe c s t r dii
f nctonsoras ume ista tonaldutesd i t i e i pe i t tt Spec a M onio a
u i
s
t r dii
i urng he nt rm rod ha he
il
t r nd

Cor aeM a ge a ea n e TheEntt De e nt m a a a tona Boa d me be swih
por t na r r ppoi t d.
iy f nda s y dd ddii l r m r t
t a ova oft e Cour durngt si erm perod.
he ppr l h
t i hi nt i
i
I .As e Fr e e
I st ez

3 Th Co t ee ytmpoa i tk s x l iej rs ito a dp se so o t ea s t, f
. e urh rb e rrl a e e cusv u id cin n o s sin f h seso
y
whatve ki a whe e rst t d,oft Entt Def nt f t pur e ofpr s r ng t
e r nd nd
r ve iua e
he iy
enda s or he pos
e e vi he
as e soft En iyDefnda s
s t he tt
e nt .

4. eptasot r s s cii her i al a s t oft Entt De e
Exc
he wie pe fed en, 1 s e s he iy f ndant a e foze untl
sr r n i
f t ro de oft sCour. c di l a l r onsa entteswih diec ori r tc r ove
urhe r r hi
t Ac or ngy, l pe s
nd ii
t r t ndiec ontol r
a a s t oft En iy Deenda s o he t n t Cop or t M a ge ,a ehe e r tane a
ny s es he tt f nt , t r ha he
ae na r r r by esr i d nd

e j ie fo drcl o idrcl ta frig, etn o fr c i n , h ngn , eln , ld ig
n on d r m ie ty r n ie t rnsern s tig f,e evig c a ig sli g p e gn s
y
a sg ng,lqui tng,orot r s diposng of o wihdr wi s h a s t.Thi fe e s l
s i ni i dai
he wie s i
, r t a ng uc s es
s r ez hal
i u butnotbe lmie t as e soft Entt De e nt t tar on de i wih fna a
nclde,
i t d o, s t
he iy f nda s ha e
post t i ncil

z t
Alhough t Courti gr i t M oton att stmesa mor compr
he
s antng he
i
hi i
e
ehensve or i
i der s
f t
orhcom i
ng.

Pa 3 of 1
ge
4

i tt i s h asba
nsiutons uc
nks, oke ag fr a m u ua f .
br r e ims nd t l unds
1 1 G e r Po sand Dute
1 . ne al wer
is
5. Cor a eM a ge s l ha a1
The por t na r ha l ve lpowe s a ho iis rght andprvieg he eof e
r , ut rte , i s
i l es r t or

pos e s d byt ofi r ,diecor ,a ma ge soft Entt De e nt unde a i bl sae
ss e
he fce s r t s nd na r
he iy f nda s
r pplca e t t
a f de allw , t g r ng c re s by-aws a tclsa ora ee
nd e r a by he ove ni ha tr . l , ri e nd/ gr ment.
s
6. po r oft tuse , r cor , fc r s
The we s he r tes die t s ofi e s mana r , mpl es i ve t
ge s e oye ,n sment dvior ,
a s s
a c a s and ot a nt oft Entt Def nda sa e he e s pe
c ount nt,
her ge s he iy
e nt r r by us nded.Such pe s a
rons nd
e ii s l haveno a hort wih r s c t t Entt Def nda ssope a i o a s t , xc pt
nttes hal
ut iy t e pe t o he iy e nt '
r tons r s e s e e
t t e e a m a he ea r be e e sy gr nt d by t Cor a e M a ge .The Cor a e
o he xt nt s y r he
xpr s l a e
he
por t
na r
por t

M a ge s l as um e a c r t ope ai oft Entt De e nt a s l purue a
na r ha l s
nd ontol he r ton he iy f nda s nd hal s nd
p es r alofiscai
r e ve l t l ms.
7. pe s hol ng o cli ng a poston ofa s twih t En iy Def nt s l
No r on di r a mi ny ii
ny or t he tt
enda s hal
pos es a a hort t a tby oron be foft Entt De e n s unls s i tuced by t
s s ny ut iy o c
hal he iy f nda t , e s o nsr t
he
Co por t M a ge .
r a e na r

8 Su j c t te s e ii p o iin i S cinsI tr u h XV,b lw,t Co ae
. b e t o h p cfc r v so s n e to V h o g
eo he port
M ana rs lha t f l ngge r lpower a dute :
ge hal ve he olowi
ne a
s nd i s
A.

To us r as bl e f t t d t r i t naur ,l ton a val ofal
e e ona e fors o e e m ne he t e ocai nd ue
l
p ope t i t r t oft Entt De e nt,i udi butnotlm ie t
r ry n e ess he iy f nda s ncl ng,
i td o,
moni s f ,s cu iis c e t ,e f ct,goods chat l,l ,pr mies
e , unds e rte , r dis fe s
, te s ands e s ,
l s s cai s rght a ot r a s t , t t r wih al r nt, pr is
ea e , l m , i s nd he s e s oge he t 1 e s oft ,
di de ,i e e torot r i ome ati abl t r t ofwha e ki
vi nds ntr s
he nc
trbut e he e o,
t ver nd,
whih t Entt De e
c he iy f ndant own,pos e s ha abe fcali e es i o
s
s s , ve
ne i i nt r t n, r
c r die ty ori r ty;
ontol r c l
ndiecl

B.

Totkec t con r a pos es i ofalt Entt Def nda s pr ry
a usody, tol nd s son
lhe iy e nt ' ope t
a r or r e ntt r t t s f a c lc , e over r ceveandt ke
nd ec ds elva he eo; o ue or nd ole t r c , e i
a
i o pos es i fom t r pa tesal pr ry oft e Entt De enda sa
nt
s son r hid ri l ope t
h
iy f nt nd
Pag 4 of 1
e
4

r or r e ntt eo;
ec ds elva her t
C.

Tom a ge, ontoloper ea m ant i t En iy Def nda sandhol i
na c r , at nd i an he tt
e nt
dn
he pos e son,cusody and contola1p opery oft En iy De e nt ,
r ssi
t
r l r t
he tt f nda s
pe ng f t Or roft s Cour ;
ndi urher de
hi
t

D.

To us pr pe t of t Entt Def nda s m a ng pa e s and
e o ry
he
iy
e nt , ki
ym nt
dibureme sa i rngexpe e a ma bene s ar
s s nt nd ncuri
ns s s y
ce s yora s ei h
dviabl nt e
or na y c s ofbusne si dic r nghe dutesasCop or t M a ge
di r our e
i s n s ha gi
r i
a e na r
i m ant i ngt or na y ope atonsoft enttes
n i ani he di r
ri
he ii ;

E.

To t ke a a ton whih, i t t ent. oft s Or r c d ha be n
a ny c i
c pror o he !
y hi de , oul ve e
t ke byt of er , r c or , rne s m a ge s tuse sa a nt oft
a n he ûc s die t s pa t r , na r ,r t e nd ge s he
Entt Def nt wihr pe tt m ant i ngt or na y o r tonsoft
iy enda s t es c o i ani he di r pe a i
he
Com pa es
ni ;

F.

Toenga a e pl peronsi he dic e i t a ss he i c
ge nd m oy s n r s r ton o s it r n anyi ou
ng t
her dutes a r s
i nd e ponsbiiis her unde a t contnue t nor
i lte
e
r nd o
i
he
mal
ope a i oft e Compa es i l ng,but notlmie t a ountnt,
r tons
h
ni , ncudi
i t d o, cc a s
at neys fna a orb i s a s r , e esaeag s f e i e t,
tor ,i ncil usne s dvie s r al t t ent , or nsc xpers
orbr r ;
oke s

G.

To t s h a ton asnec s r a a oprae f t pr s va in of
ake uc ci
es a y nd ppr it or he e er to
pr ryoft Entt De e nt ort pr venthedispai or on am e
ope t he iy f nda s o e
t s i ton c ce l nt
ofpr ry oft Entt Def nda s
ope t he iy e nt ;

H.

To pur ue,r ss a de e a ls t,ac i ,cli a demandswhih
s e it nd f nd l uis tons a ms nd
c
m a now be pen ng orwhi h ma be b ou by oras e td a i tt
y
di
c
y
r ght
s re ga ns he
En iy De en n s a
tt f da t ; nd

To tke s h o he a i asm a b a ove by t sCour.
a uc t r eton
y e ppr d
hi
t
g. ihi 5 da oft e r oft sOr , heCor a eM ana rs lr por t t CFTC
W t n
ys he nty hi der t
por t
ge hal e t o he
a t wha aci s wilunde tket f fl hi dutesa t Com or t M a
so
t tons he l
ra o ulil s i s he
a e nage .
r
I Ac s t I or aton
V. ce s o nf m i

1 TheEntt Def nda sa t pas a orpr e ofi e s die t s a nt , nage s
0.
iy e nt nd he t nd/ es nt fc r , r c or , ge s ma
r,
ge r a dlm ie pa t r ,r t s at ys a coun a sa empl esoft Entt Def ant,
neal n i td rne s tusee , tome , c
t nt nd
oye
he iy end s
a wela t ea tngi t i pl e a ehe e or r d a die t dt pr e vea t ' ove t t e
s l s hos c i n her ac , r r by de e nd r c e o es r nd ul
n ro h
Pa 5 of 1
ge
4

Spe a M oniorand Com or t M a ge f t t a 1pa a e e to ci o ma i of a or
cil
t
a e na r orhwih 1 per nd l cr ni nf r ton , nd/

r ltng t t En iy De e n s a orispr t s h i or a in s li ude butnotbe
ea i o, he tt f nda t nd/ t opery; uc nf m to hal ncl

lmied t books r or ,d
i t o
, ec ds ocume s a ount a a1 ot ri tu
nt , cc s nd l he nsr ment a pape s
s nd
r.
The En iy De e
tt
f ndan s s pa t a or pr s ofier ,diecor , a nt ,at ne ,
t ' s nd/
e ent fc s r t s ge s tor ys
m a ge s s r hol r ,empl s a co t nt .de o s c e t s,ma ge s a ge r a
na r , ha e de s
oyee , c un a s bt r , r dior
na r nd ne al nd
lm ie pa t r ,a o herappr it p s o e iis s la we underoa h t t Specal
i td rne s nd t
oprae erons r ntte hal ns r
t o he
i

M oniora Com or t M a ge a lquesi whih t Spe i lM oniora Cor a eM a ge
t nd
a e na r 1
tons c he c a
t nd por t
na r
ma putt t
y
o hem a pr e aldoc nt a r quied by t Spe alM oniora Cor ae
nd oduc l
ume s s e r
he ci
t nd
por t
M a ge r ga di t busnes oft Entt Def nda s o a ot r ma tr r lva t t t
na r e r ng he i s
he iy
e nt , r ny he
te ee n o he

o r ton oradmi sr ton oft En iy De e
pe a i
nita i
he tt f ndan sort coleci off
t
he l ton unds due t Am e i n
o
rca
Re t l t eve t tt Specal onioro Cor r eM a ge de m si ne es a yt r quiet
al n he ntha he
y.
i M t r po at na r e t c s r o e r he
a
ppea a e oft a or m e i d peronsore iis t Spe i lM o t orCom or t M a e
r nc
he f e ntone
s
ntte , he c a
nior
a e nag r
s lma isdico y r ue t i a cor ewiht Fe r lRul sofCi lPr e e,
hal ke t s ver eq ss n c danc t he de a
e
vi oc dur
V.Acc s t Books Rec dsand Ae ount
es o
, or
c
s
1 TheSpecal oniora Cor aeM a g a ea h ie ot i dit pos e son
2.
i M t nd por t na er r ut orz dt ake mme ae s s i

ofal ba a ount orot fna ila count ,books a r co dsa al ot doc e t or
1 nk cc s
her i nca c
s
nd e r nd l her um n s
i tume sr ai t t Entt Def nt
nsr nt eltng o he iy enda s.

1 Any pe s r c i ng notc oft sOr rbype s
3.
r ons e e vi
i e hi de
r onals r i e, ac i l ta mison
e v c f smie r ns s i
oro he wi e ha ng pos es i oft pr ry, i s ,
t r s , vi
s son he ope t busne s books r c ds a co t ora s t oft
, e or , c un s s e s he
Entt Def nda sa e he e die t d t de i rt s m e t t Spe alM oniora Cor ae
iy
e nt r r by r c e o lve he a o he ci
t nd
por t
M a ger t i ag t a orempl es
na , her en s nd/
oye .
1 Alba , oke a fr ,i ncalns iutons a ot rpe s o en ii whihha
4. l nks br r ge ims tna i i tt i , nd he r ons r ttes c ve
Pa 6 of 1
ge
4

pos e son,c t orc r ofa a s t orf
s s i usody ontol ny s es undshed by, n t na of orf t be ftof
l
i he me , or he nei ,
die tyori r cl andof heEntt Def nda st r c veacual i eoft sOr rbyperonal
r c l ndie ty,
t
iy e nt hat e ei t notc hi de
s
s vie, a i l ta mi so orot r s s l
er c f csmie r ns s i n
he wie hal:
Not lqui e, ta f r s l con y o o he wie tanser a a s t ,
i dat r ns e , el, ve r t r s r f ny s e s
s urte ,f , a count i t na o o f rt be ftofTheEntt
ec iis unds or c
s n he me f r o he ne
iy
De e nt e e upo i tuc i fom t Co o ae M a ge ;
f nda s xc pt n nsr tons r he m r t na r
Not r iea f m ofs tof , l eds tof, ins an f ofs fhep
exe c s ny or
e- f aleg e - f le or y onn el- l
wha s ver or r f e t ta f r an f
t oe ,
e us o r nse y unds o a s t t t Cor ae
r s e s o he
por t
M ana rsc r wihoutt pe s i oft sCour;a
ge ' ontol t
he nnison hi
t nd
Coope a e e dii l i pr di i or ton a ta f ri f nds
r t xpe tousy n ovi ng nf ma i nd r ns e rng u ,
a s t a a count t t Cor a e M a ge or a t die ton of t
s e s nd c
s o he
por t
na r
t he r c i
he
Com or t M a ge .
a e na r
VI Ac s t Per onalPr r y
. ce s o s
ope t
1
5.

TheCop or t M a ge i a horz t t kei me a epos es i n ofal peronal
a e na r s ut ied o a m dit
s so
l s

p ope t heEntt De e nt , r ve l aed,ncl ngbu
r ryoft
iy f nda s whe e r oc t i udi
tnot i t dt e e tonial sor d
Imie o l cr c l t e
y
i or ton, omput r ,lpt , r drve ,e e na sor e drves a a ot rs h me or
nf ma i c
e s a ops ha d i s xtr l t ag i , nd ny he uc
m y,
m e a o eecr c sor
di r l toni t age de ce , books pa r , daa pr es i r c ds, e de e of
vi s
, pe s t oc sng e or
vi nc
i bt dnes ,ba r c ds a d a coun s s vi gs r or a a c s br r r or a
nde e s nk e or n c
t , a n ec ds nd c ount , oke age ec ds nd
a ount,ce tfc t sofde i,soc ,bonds de nt e ,and ot s c iisand i sment,
cc s rii a e
post t ks
, be ur s
her e urte
nve t s
c ta t , t s f niur , tces isa e pm e . Cop or t M a e s l m a
on r c s morgage , ur t e ofl upple nd qui nt The
a e nag r ha l ke
a 1r c dso t Entt De e
1 e or f he iy f ndan sa ia et t Spe i M onior
t va lbl o he cal
t .
1 TheCor aeM a ge i a horz t ope al mai die t d t orr cevedbyorat he
6.
por t na r s ut ied o n 1 l r c e o e i
t
ofi e or tofieboxe oft Entt Def nda s a t i pec almaiope dprort t en r
tc s pos fc
s he iy e nt , nd o ns t 1 l ne i o he ty
oft sOr r t deer i wheherie sori o ma i t r n f l wihi t m a t oft s
hi de , o t m ne
t tm
nf r ton he ei a l t n he ndaes hi
Or r
de .
Pa 7 of 1
ge
4

17.
Upon t r ues oft Cor a eM a ger t Unie St esM a s Ser c i an
he eq t he por t
na , he t d at
r hal vie, n y

j d ca d src,s rb o d rdt a ss teCo p rt M a a e i c ryn o t sd te t tk
u iil ititi hee y r e e o sith r o ae n g r n a r ig u hi u is o a e
pos e son, usod a c r of o i ntf t l a i of a as e s r co dsorot rma e i s
s s i c t y nd ontol , r de iy he oc ton , ny s t , e r
he t ral
bel ng t t Entt Def nda s
ongi o he iy
e nt .
V I . otce t Thi d Par i s
IN i o
r
te

1 The Spe alM onio a Com or t M a er s l ompty gi notc of t i
8.
ci
t r nd
a e nag halpr
l ve ie
her
ap n me s as t Spe a M onior a Cor ae M a
poit nt , he
cil
t nd
por t
nage de ne es a y or a s bl t
r em c s r
dvia e o
e f c uaet ope a i oft ra nt nt .
fe t t he r ton hei ppoi me s
1 A1 pe s a e ii sowi an oblga i orde t t En iyDe e nt s luntl
9. 1 r ons nd ntte
ng y i ton
bt o he tt f nda s hal, i
f t ror r d by t sCour, y als oblga i i a or nc wih t t r st r t t
urhe de e
hi
t pa l uch i tons n cc da e t he e m he eof o he
Co or t M a ge a isr e ptf s h pa e t s l ha t s m ef cea efec asi t
m a e na r nd t ec i or uc ym n s hal ve he a or nd f t f he
Entt De enda sha r ceved s h pay e .
iy f nt d e i
uc
m nt
20. Cop or t M a
The
a e nage i a horz t i tu tt Unie St t Posm a trt hol
r s ut ied o nsr c he t d aes t se o d

a / r r ema lwhih i r lt d, r ty o i r ty, o t busne s o r tonsora tvii
nd or e out i
c s e ae diec l r ndiec l t he i s , pe a i
c i tes

oft EniyDee nt (hefcor aeMa rsM a1) i udi almaia e s t orf
he tt fnda s t k port nage' i' ,ncl ng l l ddrsed o, or
'
t be ftof t Entt De end s. Posm a t rs l notc pl wih, nd s lm medit l
he nei , he iy f ant The t se hal
om y t a hal i
a ey
r p t o t Cor ae M ana r a c ngeofa e so o he i t c i n gi n by a one o he
e or t he por t
ge , ny ha
ddr s r t r nsnlto ve
ny
t r

t nt Cor aeM ana rconc r ngt eCor aeM ana rsM al TheEntt De e nt s l
ha he por t
ge
e ni h
por t
ge ' i.
iy f nda s hal

noto a oft Com or t M ana rsM aia s l mmedit yt novers m alr r es
pen ny he
ae
ge '
l nd hali
ael ur
uch i,ega dl s
ofwhe r ceve t t Com or t M a ge . 1pe s
n e i d, o he
ae na r A1 ronalmai ofa i vi ,a ora mai
l ny ndi dual nd/ ny l
a a i t c ai prvie d i o ma i a oranym a lnotf lng wihi t m a t oft
ppe rng o ont n i lge nf r ton, nd/
i
ali
t n he nda e he

Cor ae M a ge ,s l be r l s d t t na e a e s by t Co por t M a er Th
por t
na r ha l
eea e o he m d ddr s ee
he r ae nag . e
Pag 8of 1
e
4

f ego ngi tuci s la yt a pr it ,
or i nsr tons hal ppl o ny opre or whet ri vi lore iy, a prvaema l
he ndi dua
ntt of ny i t i
box, post y, i s ors r i orm alc i ordei r s r i hie r nt orus d byt
de ior busne s e vce,
i ourer
lve y e vce, r d, e ed
e
he
Entt Def nt TheEntt Def nda ss l notope ane ma l ort any sepsormak
iy enda s.
iy e nt hal
n
w ibox, ake
t
e

an ar ng nt t r c vem ali co r ve i oft sOr ,whe he t ough t U. m a l a
y r a eme s o e ei
i n nta nton hi der
t r hr
he S. i,
prvae ma lde io yorc i rs r c
i t i post r
oure e vie.
21.The Cor ae M ana ri a horze t as e t pr e t a / ne i t a cli
por t
ge s ut i d o s r, os cu e nd or gotae ny a m
unde a i ur nce polcy hel b oris on be l oft Entt Def nda s orisofi e s
r ny ns a
i
d y
sued
ha f he iy
e nt , t fc r ,
diecor , ge s empl esortusee , nd t t a y a al a opra ese i c
r t s a nt ,
oye
r t s a o ake n nd 1 ppr it t ps n onne tonwih
ci
t
s h polces
uc
ii .

VI l I unci Agai tl ere ence
I . nj ton
ns nt f r
22. Entt De e nt a alpe s r c i ngnotc oft sOr rbyperona s r ce
The iy f nda s nd l r ons e e vi
ie hi de
s l e vi ,

fc i l o ohewie aeh rb r sri e a d e j n d fo dr cl o i drcl tk n a y
a smie r t r s , r ee y etan d n noie r m ie t r n ie ty a i g n
y
aci n o c usng a y a ton t be t ke wihoutt expr s wrte ag ee t oft Spe al
to r a i n c i o
a n, t
he
e s it n r men
he
ci

M oniorand Cop o at M a
t
r e nage ,whih woul
r
c
d:
A.

I e f r wiht Cor a eM a erse f t t t keco r , s s i or
nt re e t he por t nag ' fors o a
ntolpos e son,
m a eme ofan t Entt De e nt pr ry;s h pr bie a to
nag nt
y he iy f nda s ope t uc ohi t d c i ns
i ude ' a e notlm ie t usng s l- l ore c i oris ng or
ncl
but r
i t d o, i e fhep
xe utng
s ui
c i t e uton or is nc of a c t a t hme , s
ausng he xec i
s ua e
ny our tac nt ubpoe
na,
r plvi exe ton, ot rpr es f hepur eofi
e e n, cu i or he oc s ort
pos
mpoundi ortki
ng a ng
pos e son ofo i ererng wih orc eai orenf ci ale upon a of
s si
r nt f i
t
r tng
or ng i n
ny
t Entt De e nt 'pr ry;
he iy f nda s ope t

B.

Hi r obsr t or o he wie i e f r wih t Spe a M onior a
nde , tuc
t r s nt re e t he
cil
t nd
Cor a tM ana ri hep f ma eof hc r tes s hpr bie a tons
por t
ge nt eror nc t i du i ; uc ohi t d c i
i l buta enotlm ie t c ea i de toyi orat i r or or
ncude
r
i t d o, onc lng, sr ng
lerng ec ds
i or a i
nf m ton;
Dispae or ot r s di i s t vaue ofa t Entt De e nt '
si t
he wie m ni h he l
ny he iy f nda s
pr ry;s pr bie aci i l e buta e notlm hed t r e i
ope t uch ohi t d tons ncud
r
i
o, elasng

Pa 9 of 1
ge
4

cai s or diposng,tans e rng,e
lm
s i r f ri
xcha ng,as i ng or i a wa
ngi
sgni
n ny y

c n e n a y o te En i De e d n s p o e t,e f ri j d me t,
o v yig n f h t y fn a t' r p ry n o cng u g n s
t
a s s m e s or cai s a i t a En iy De e
s e s nt
l m ga ns ny tt
f ndant or is pr ry,
s
t ope t
a tm ptngt m odiy, a eltnni t , al, xtnguih,evokeora cee ae
te i o
f c nc ,e na e c le i s r
c lr t

(heduedae, a las l n, rga i e s ,e urt a e me
t
t)of ny e e,oa mo t ge,ndebtdne s sc iy gre nt
o ot ra e nte cutd by The Entt De e n sorwhih o he wie
r he gr eme xe e
iy f nda t
c t r s
a f c sa y ofispr pe t or
fe t n
t o ry;
D.

I erer wih orha a s t Spe i M o t a Cor ort M a ge ,or
nt f e t
r s he
cal nior nd
p ae na r

itreei a yma n r t t ee cu ie u idcino ti Co ro e Th
n efr n n n e wi h x lsv j rs ito fh s u t v r e
h
Entt De en n s
iy f da t .

23. lDe e n s i l ngt idi dualDef nt i t sa i s l coope a ewih
Al f nda t , ncudi he n vi
enda s n hi cton, ha l
rt t
a a ss t Spec a M oniora Com ort M a
nd s it he
il
t nd
ae nage i t pe f manc oft i du i .
r n he ror
e he r tes

2 TheSpe i M oniorand Cor a eM a ge s lpr m p l notf t Cour a CFTC
4.
cal
t
por t na r hal o ty iy he
t nd
co e o a f iur ora e tf l eofa pe s ore iyt c
uns l f ny al e ppar n aiur
ny r on ntt o ompl i a wa wiht t ms
y n ny y t he er
oft sOr r
hi de .
l St y ofLii i
X. a
tgaton

25.Exce f t i t nta ton,t De a a o y Ac i c rnty pendi be we n t e
pt or he nsa c i he clr t r
ton ure l
ng t e h
Huntr W ie De en n s a t CFTC i t Ea tr Ditit of llnoi ,a a polc or
e
s
f da t nd he
n he se n src
li s nd ny i e
r gult y a tonsa a i oft CFTC r l td t t a
e a or ci
nd ctons he
e ae o he bove- ptone e or eme a ton, nd
ca i d nf c nt ci a

wih t f t rexc pton asnot i Pa ag a 28,t f l ng pr e ngsar sa untl
t he urhe
e i
ed n r r ph
he olowi
oce di
e t yed i
f t rOr roft sCo t
urhe de
hi ur:
i t d o, nkr pty
A1 cvi lgal pr e ngs of a naur , i udi but not lmie t ba u c
1 i l e
oce di
ny t e ncl ng,
p oce di ,a bir ton pr ee ng ,f e os e a tons de a t pr e ngs or ot e
r e ngs r ta i
oc di s or cl ur c i , f ul oc edi ,
hr

a tonsofa naur i vi ( t Spe a M oniora Cor aeM a ge,i t r
ci
ny t e nvol ng: a) he cil
t nd port na r n hei
c pa te a SpecalMoniora Cor aeM a ge ;b)a Entt Dee nt pr ry,
a ciis s i
t nd port na r ( ny iy fnda s ope t
whee r l ae ()The Entt Dee nt,i l ng s i ais pa t rhi ,a
rve oc td; c
iy fnda s ncudi ubsdire , rnes ps nd
e iisowne orc r ldbyTheEntt Dee t or( a yoft Entt Dee anss
ntte
d ontole
iy fndans; ,d) n he iy fnd t'
pas orpr s n ofi r , r t s ma
t
e e t fce s diecor , nage s ag t , ge a orlmie pa t ss d f ,
r , en s or ner l i t d rner ue or
ori c
n onne tonwih, a ton tkenbyt m whiea tngi s h ca ciy ofan naur
ci
t any c i a
he
l c i n uc pa t
y t e,

whehe a pli ifdeenda ,hid- t pli ift r pa t dee ntorohe wie(uc
t r s antf, f ntt r pary antf,hid- ry fnda , t r s s h
Pa 1 o 1
ge 0 f 4

pr ee ngsaeheei ferrfre t a i ilr Pr e ngs'.
oc di r r na t ecrd o s ' lay oc edi '
Anc
)

26 Th p rist a y a d a1An ilr Pr c e ig ae e j n d fo c mme cn o
. e a te o n n 1 clay o e dn s r noie r m o n ig r
con i ng a s h l alpr e di orf o t ki a a i i c neci wih a y s h
tnui ny uc eg
oc e ng, r m a ng ny cton, n on ton t n uc
pr e di i l ng, no lmie t t is nc ore oymen ofpr s ,
oc e ng, ncudi but t i t d o, he s ua e mpl
t
oce s
27,Al Ancla y Pr e ngs ar sa d i t i e iet a al Cours ha ng a
1
ilr oc edi
e t ye n her ntr y, nd l
t vi ny

j rs ito t ee ae e j ie fo tkngo p r tig a ya to u i f rh rOr e o t i
u idcin h rof r n on d r m a i r emi n n ci n ntl u te d r f h s
t
Cour. t r ast ac us ofac i a cr d ora r ngi f voroft Entt Defnda sa i t
t Furhe , o a e
ton c ue
cc ui n a
he iy e nt ga ns
at r pe s n orpa t anya ia esa u eoflmia i i t l d durng t pe i i whi t s
hid r o
ry,
pplc bl t t t
i t ton s ole
i he rod n ch hi

ij n to a an tc mme c me to lg l o e dig i i efc a t t a c u eo a to
nu cin g is o n e n f e a prc e n s s n fe t s o h t a s f cin.
28. S ilr Pr e di ' s c fc l exc ud a pe ng ltga i i whih a
s la y oc e ngs' pe ii aly l es ny ndi ii ton n
Anc
c ny
De e nti a pa t W ih r pe t t e pr ee ngs t M onior s l r vi t
f nda s
ry. t es ct o hos oc di , he
t hal e ew hem a
nd

rcomme f t ra ton wihi 30 d .
e
nd urhe c i
tn
ays
X .M anagi A s e s
ng s t

29.The Cor a e M a ge may esa ih one o mor c t a a c s a a f r l
por t
na r
tbls
r
e usodil c ount t ede aly

i ur ba t r c vea hol al f dsoft Entt De enda s.
ns ed nk o e ei nd d l un
he iy f nt Suchde i a ount s l be
post cc s ha l

e t ld k r oaeM a a e ' Ac o n f r( tt De e d n l'
n ie ' p r t n g rs c u t o En i fn a t.
t Co
y
'
X I C onni t ofI e s
.
c s nt re t

3 TheSpe al oniora Cor or t M a ge haveac i ngdut t e ur t tt r
0.
ci M t nd p ae na r
ontnui
y o ns e ha he e

a eno co lc sofi t r tbet e t Spe i M onior Com o at M a ge ,hera nt ,a t
r
ntit
n e es we n he cal
t ,
r e na r t i ge s nd he
Entt De e nt ,
iy f nda s
XI . m iatonson Li lt o Spe alM onior Corporat M anagerand Di c or
I Li t i
abiiy f ci
t ,
e
re t s
31. i f t rOr oft sCo tt Spe i lM o t a Cor a eM a e s l not
Untl urhe der hi ur, he c a nior nd por t
nag r ha l
Pa 11 of 1
ge
4

be r quied t pos bond or gve a unde tki ofany t i co c i wih t i fduc a y
e r o t
i n
ra ng
ype n nne ton t her i i r
oblg tonsi t sm at r
i a i n hi te .

32.Durng t i e i p i oft sOr r t Spe alM onior Cor or t M ana ra
i he ntrm erod hi de , he ci
t , p ae
ge nd

teia nt, a membe oft BoadofDie or oft Eniis(s r t ' a tngwihi s
h r ge sor ny
r he r
rct s he tte k ecor' ci t n cope
Di
)
ofs hag ya een il t r y onal outt ng r e ofl a Or r oft sCour a s al
uc enc r tted o el
l sandi uls aw nd de s hi
t nd h l

n tb l bl t a y n f r h i o g o f i c mpin ewi a yo d r r l,a j d me t o
o e i e o n o e o t er wn o d at o l c t n r e , ue lw,u g n , r
a
h
a
h
de r e.nnoe ts l heSpe a M onior Cop or t M a
ce l
ven halt
cil
t ,
ae nage ort i a nt orDiecorbela e
r he r ge s
r t
i bl
t an
o yonef t i good f ih c
or her
at ompla wiht i dute a r ponsbiii asSpe i M o t ,
ince t her i s nd es i ltes
cal nior
Cop or t M a ge ort ra nt , Die or nors l t Spe alM onior Com or t M a ge
a e na r hei ge s or r ct ,
ha l he ci
t ,
a e na r

o t rag sorDie t rbela et a
r hei ent
rco
i bl o nyonef a ac i t n orom it d byt m e ptupon
or ny tons ake
te
he xce
a fndi by t sCour t tt y a t d orf ie t a ta a r ul ofma f a a ,ba f ih,gr s
i ng
hi
t ha he c e
a ld o c s es t
le s nce d at os
ne i nc o i r ckl sdir ga d oft i dute .Thi pr vii doe nota yt a a tonso
glge e, r n e es s e r
her i s
s o son s
ppl o ny c i
r
f iur t a ta ar s tofm alea a e, d f ih,g os ne i nc ori r c es dir ga d oft
al e o c s e ul
f s nc ba at r s glge e, n e kl s s e r
he
Die t ' dute prort t Comm ison' l ui i t smat r
r cors i s i o he
s i s aws t n hi te ,

3 Thi Co r s al eanj rs ito o e a ya to fld a an tt eS ca Mo io ,
3. s u t h l r ti u idcin v r n cin ie g i s h pe il n tr
Cor ae M a ge ort i a nt oraDiecorbas upon acsorom isonsc mit i t r
por t
na r he r ge s
r t
ed
t
si
om ted n hei
r e en a i ca z tes
epr s t tve pa ii .

3 l t e tt SpecalM oniororCor ae M a e de de t r sgn,t Spe al
4. n he ven he
i
t
por t
nag r ci s o e i he ci

M oniororCop or t M a ge s l fr tgi wrte no i t t Comm ison' couns ofr or
t
a e na r ha l is ve it n tce o he
si s
el ec d
a t Cour ofisi e i a t r sgnato s lnotbe e f c i untlt Cour a nt a
nd he
t t nt nton, nd he e i i n hal
fe tve i he
t ppoi s
s c s .The SpecalM oniora Com or t M a ge s l t n f l s h i tuc i a t
uc es or
i
t nd
a e na r hal he olow uc nsr tons s he
Cour m a pr de. r m e be s m a r s gn w ih notc t ora ovaloft Cour .
t y ovi Boa d m r y e i
t
ie o
ppr
he
t
Pa 1 of 1
ge 2
4

X I l. e om m e
I R c
ndatons and R e
i
port
s

35.
Uponhe a nt nt t Spe a M oniors l pe f m anas e s ntoft vi biiy
r ppoi me , he cil
t ha l ror
s s me
he a lt

oft Entt De t nt asa goi busne se ep rs a optonsa aler tve f rt f ur
he iy f nda s
ng i s nt ie nd i
nd t na i s o he ut e
oft Entte .
he ii s

36.W ihi 30 da oft enty dae oft sOr r t Spe alM onio s l fl wih t
tn
ys he r t
hi de , he ci
t r ha l ie t he
Cour a s r ont pari ar por ofhi c usonsa r c me tons
t nd e ve he tes e t
s oncl i
nd e om ndai .
37.The Cou twilhol a hea i on t r comme ton oft Spe alM onio a tr
r l d
rng
he e
ndai
he ci
t r fe

a p o raen tc t itrse p riswh h v sa d n t a s r ters p r o o j cint t e
p r p it o ie o n ee td a t
e o a e tn i g o s e th i u po t r be to o h
rc
e omm e ton oft Speca M onior
ndai
he
il
t .
XI . e .Expe e and Acc
V Fe s
ns s
ount ngs
i

38. Spe i lM oniorandCor aeM a ge n dnotobt nCo t ppr lp i t t
The c a
t
por t na r ee
ai ur a ova ror o he

dibur e nt of t Entt De e n s s f
s s me
he
iy f nda t ' unds f r e ns i t o di r co s of t e
o xpe es n he r na y ure
h
a i sr to a ma
dm nitai n nd nage ntof t Entt De e nt .Furhe ,prorCo tappr
me
he iy f nda s
t r i
ur
ovali not
s
r quie f pa nt o a i a ef de a , t t orl alt xe
e r d or yme s f pplc bl e r l sae oc a s.
39, Cop or t M a e s lc ul wih t CFTC i a nceofa y e ndiur of
The
a e nag r hal ons t t he
n dva
n xpe t e

$ 00 o mor a ort diposton orac ston ofa r alorpe s pr ry.
2, 0 r e nd/ he s ii
quiii
ny e
r onal ope t
40.As t Cou tde e m i , he Spe i lM oniora Cor a e M a ge a e e ild t
he
r t r nes t
ca
t nd
por t
na r r ntte o
c pe ai n de d t ber s
om ns to eme o ea onabl a a opra ef t i wor a t wor oft i a nt .
e nd ppr it or her k nd he k her ge s
The Spe i l M onior and Cop or t M ana r s l peii t Cour f pa nt of s
ca
t
ae
ge hal tton he
t or yme
uch
c pens i
om
aton.

XV.Pre er i ofRi sand Prvie s
s vaton
ght
i l ge
4l Not ngi t sOr rs l c tue t r quiet ta De e nt a ndo orwa ve
. hi n hi de halbe onsr d o e r ha ny f nda s ba n
i
Pa 1 of 1
ge 3
4

a y c tt i orl lprvieg whi t y m a havea ia et t .
n onsiutonal ega i l e ch he
y
va lbl o hem

Pl BahF ',i2ndyf
a ec. t ts2 ao
m
h d

DO NE AND ORDERED i Chambe sa W e t
n
r t s
Fe ua y,201
br r
3.

.s

.

z
,

X

Z

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<
.

.
.

DONALD M .M I
DDLEBROOKS
UNI
TED STATES DI
STRI J
CT UDGE

Copi st
e o:

Couns lofRe r
e
co d

Pa 1 of 1
ge 4
4