U.S. Commodity Futures Trading Commission v. eFloorTrade, LLC et al

Filing 102

CLERK'S JUDGMENT re: 101 Memorandum & Opinion. in favor of U.S. Commodity Futures Trading Commission against eFloorTrade, LLC, John A. Moore,, in the amount of $80,000, jointly and severally; in favor of U.S. Commodity Futures Tradin g Commission against John A. Moore in the amount of $ 140.000.00. It is hereby ORDERED, ADJUDGED AND DECREED: That for the reasons stated in the Court's Memorandum Opinion and Order dated April 3, 2020, the CFTC1 request for injunctive re lief is granted to the extent that:A.Defendants Moore and eFloorTrade are permanently restrained, enjoined and prohibited from directly or indirectly: 1.Failing to keep and produce for inspection records of eFloorTrade's pretrade communications and all commodity interest and related records, in violation of Section 4g(a) of the Act, 7 U.S.C. § 6g(a), and Regulations 1.31(a) and (d), 1.35(a)(3) and (b)(1), 17 C.F.R. §§ 1.31(a), (d), 1.35(a)(3), (b)(1) (2018); 2.Failing to prep are, immediately upon receipt, a written record of a customer order including account identification and order number, and reflecting the date and time, to the nearest minute, the order is received, in violation of Section 4g(a) of the Act, 7 U.S.C. § 6g(a), and Regulations 1.35(a)(3) and (b)(1), 17 C.F.R. §§ 1.35(a)(3), (b)(1) (2018); and 3.Failing to diligently supervise the handling of commodity interest accounts and other activities of eFloorT rade's partners, officers, employees and agents in violation of Regulation 166.3, 17 C.F.R. § 166.3 (2018). B. Defendant Moore is permanently restrained from directly or indirectly making false or misleading statements of material fact to the Commission in violation of Section 6(c)(2) of the Act, 7 U.S.C. § 9(2).C. Unless eFloorTrade is a party, at all times, to a guarantee agreement with a registered futures commiss ion merchant ("FCM"), pursuant to Regulations 1.10(a)(4) and (j), 17 C.F.R. § 1.10(a)(4), (j) (2018), whereby the registered FCM acting as guarantor is jointly and severally liable for all obligations of eFloorTrade under the Act an d Regulations, Defendant eFloorTrade is restrained, enjoined and prohibited from directly or indirectly:1. Applying for registration or claiming exemption from registration with the CFTC in any capacity, and engaging in any activity requiring such registration or exemption from registration with the CFTC, except as provided for in Regulation 4.14(a)(9), 17 C.F.R. § 4.14(a)(9) (2018)); and/or2. Acting as a principal (as that term is defined in Regulation 3.1(a), 17C.F.R. § 3.1( a) (2018)), agent or any other officer or employee of any person (as that term is defined in 7 U.S.C. § 1a(38)), registered, exempted from registration or required to be registered with the CFTC except as provided for in 17 C.F.R. § 4.14(a) (9).3. These restrictions shall remain in place for five years from the date that this Opinion & Order is entered on the docket. D. Defendant Moore is also restrained, enjoined and prohibited from directly or indir ectly: 1.Applying for registration or claiming exemption from registration with the Commission in any capacity, and engaging in any activity requiring such registration or exemption from registration with the CFTC except as provided for in Regulatio n 4.14(a)(9), 17 C.F.R. § 4.14(a)(9) (2018); and/or2.Acting as a principal (as that term is defined in Regulation 3.1(a), 17C.F.R. § 3.1(a) (2018)), agent or any other officer or employee of any person (as that term is defined in 7 U.S.C. & #167; 1a(38)), registered, exempted from registration or required to be registered with the CFTC except as provided for in 17 C.F.R. § 4.14(a)(9).3.These restrictions shall remain in place for five years from the date that this Opinion & Order is entered on the docket.II. CIVIL MONETARY PENALTY Defendants shall pay, jointly and severally, a civil monetary penalty in the amount of $80,000, and Moore shal l pay, individually, an additional civil monetary penalty of $140,000 ("CMP Obligation"). If the CMP Obligation is not paid immediately, post-judgment interest shall accrue on the CMP Obligation beginning on the date of entry of this O pinion & Order, and shall be determined by using the Treasury Bill rate prevailing on the date of entry of this Opinion & Order pursuant to 28 U.S.C. § 1961. Defendants shall pay their CMP Obligation and any post-judgment in terest by electronic funds transfer, U.S. postal money order, certified check, bank cashier's check, or bank money order. If payment is to be made other than by electronic funds transfer, the payment shall be made payable to the CFTC and sent to the address below: MMAC/ESC/AMK326 Commodity Futures Trading Commission Division of Enforcement 6500 S. MacArthur Blvd. HQ Room 181 Okl ahoma City, OK 73169 If payment by electronic funds transfer is chosen, Defendants shall contact Marie Thorneor her successor at the address above to receive payment instructions and shall fully comply with those instructions. Mar ie Thorne or her successor can be reached at the following telephone numbers and email address: [phone] office telephone; [phone] office fax; [e-mail]. Payment of the CMP Obligation is to be accompanied by a cover lett er that identifies Defendants and the name and docket number of this proceeding. Defendants shall simultaneously transmit copies of the cover letter and the form of payment to the Chief Financial Officer, Commodity Futures Trading Commission, Three L afayette Centre, 1155 21st Street, NW, Washington, D.C. 20581. Acceptance by the CFTC of any partial payment of Defendants' CMP Obligation shallnot be deemed a waiver of Defendants' obligation to make further payments pursu ant to this Opinion & Order, or a waiver of the CFTC's right to seek to compel payment of any remaining Balance; accordingly, this case is closed. (Signed by Clerk of Court Ruby Krajick on 04/07/2020) (Attachments: # 1 Notice of Right to Appeal) (dt)

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
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U.S. COMMODITY FUTURES TRADING
COMMISSION,
Plaintiff,
-against-

16 CIVIL 7544 (PGG)

JUDGMENT

EFLOORTRADE LLC; and JOHN A. MOORE,
Defendant.
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It is hereby ORDERED, ADJUDGED AND DECREED: That for the reasons
stated in the Court's Memorandum Opinion and Order dated April 3, 2020, the CFTC’1 request
for injunctive relief is granted to the extent that:

A. Defendants Moore and eFloorTrade are permanently restrained, enjoined and
prohibited from directly or indirectly:
1. Failing to keep and produce for inspection records of eFloorTrade’s
pretrade communications and all commodity interest and related records, in
violation of Section 4g(a) of the Act, 7 U.S.C. § 6g(a), and Regulations 1.31(a)
and (d), 1.35(a)(3) and (b)(1), 17 C.F.R. §§ 1.31(a), (d), 1.35(a)(3), (b)(1)
(2018);
2. Failing to prepare, immediately upon receipt, a written record of a customer
order including account identification and order number, and reflecting the date
and time, to the nearest minute, the order is received, in violation of Section
4g(a) of the Act, 7 U.S.C. § 6g(a), and Regulations 1.35(a)(3) and (b)(1), 17
C.F.R. §§ 1.35(a)(3), (b)(1) (2018); and
3. Failing to diligently supervise the handling of commodity interest accounts and
other activities of eFloorTrade’s partners, officers, employees and agents in
violation of Regulation 166.3, 17 C.F.R. § 166.3 (2018).

B.

Defendant Moore is permanently restrained from directly
or indirectly making false or misleading statements of material fact to the
Commission in violation of Section 6(c)(2) of the Act, 7 U.S.C. § 9(2).

C. Unless eFloorTrade is a party, at all times, to a guarantee agreement with a
registered futures commission merchant (“FCM”), pursuant to Regulations
1.10(a)(4) and (j), 17 C.F.R. § 1.10(a)(4), (j) (2018), whereby the registered FCM
acting as guarantor is jointly and severally liable for all obligations of

eFloorTrade under the Act and Regulations, Defendant eFloorTrade is restrained,
enjoined and prohibited from directly or indirectly:
1.

Applying for registration or claiming exemption from registration with the
CFTC in any capacity, and engaging in any activity requiring such
registration or exemption from registration with the CFTC, except as
provided for in Regulation 4.14(a)(9), 17 C.F.R. § 4.14(a)(9) (2018)); and/or

2. Acting as a principal (as that term is defined in Regulation 3.1(a), 17
C.F.R. § 3.1(a) (2018)), agent or any other officer or employee of any
person (as that term is defined in 7 U.S.C. § 1a(38)), registered, exempted
from registration or required to be registered with the CFTC except as
provided for in 17 C.F.R. § 4.14(a)(9).
3.

These restrictions shall remain in place for five years from the date that this
Opinion & Order is entered on the docket.

D. Defendant Moore is also restrained, enjoined and prohibited from
directly or indirectly:

1.

Applying for registration or claiming exemption from registration with the
Commission in any capacity, and engaging in any activity requiring such
registration or exemption from registration with the CFTC except as
provided for in Regulation 4.14(a)(9), 17 C.F.R. § 4.14(a)(9) (2018); and/or

2.

Acting as a principal (as that term is defined in Regulation 3.1(a), 17
C.F.R. § 3.1(a) (2018)), agent or any other officer or employee of any
person (as that term is defined in 7 U.S.C. § 1a(38)), registered, exempted
from registration or required to be registered with the CFTC except as
provided for in 17 C.F.R. § 4.14(a)(9).

3.

These restrictions shall remain in place for five years from the date that this
Opinion & Order is entered on the docket.

II. CIVIL MONETARY PENALTY
Defendants shall pay, jointly and severally, a civil monetary penalty in the amount of
$80,000, and Moore shall pay, individually, an additional civil monetary penalty of $140,000 (“CMP
Obligation”). If the CMP Obligation is not paid immediately, post-judgment interest shall accrue on
the CMP Obligation beginning on the date of entry of this Opinion & Order, and shall be determined

by using the Treasury Bill rate prevailing on the date of entry of this Opinion & Order pursuant to 28
U.S.C. § 1961.
Defendants shall pay their CMP Obligation and any post-judgment interest by electronic
funds transfer, U.S. postal money order, certified check, bank cashier’s check, or bank money order.
If payment is to be made other than by electronic funds transfer, the payment shall be made payable
to the CFTC and sent to the address below:
MMAC/ESC/AMK326
Commodity Futures Trading Commission
Division of Enforcement
6500 S. MacArthur Blvd.
HQ Room 181
Oklahoma City, OK 73169
If payment by electronic funds transfer is chosen, Defendants shall contact Marie Thorne
or her successor at the address above to receive payment instructions and shall fully comply with
those instructions. Marie Thorne or her successor can be reached at the following telephone numbers
and email address: [phone] office telephone; [phone] office fax; [e-mail]. Payment of the CMP Obligation is to be accompanied by a cover letter that
identifies Defendants and the name and docket number of this proceeding.
Defendants shall simultaneously transmit copies of the cover letter and the form of payment to the
Chief Financial Officer, Commodity Futures Trading Commission, Three Lafayette Centre, 1155
21st Street, NW, Washington, D.C. 20581.
Acceptance by the CFTC of any partial payment of Defendants’ CMP Obligation shall
not be deemed a waiver of Defendants’ obligation to make further payments pursuant to this
Opinion & Order, or a waiver of the CFTC’s right to seek to compel payment of any remaining
Balance; accordingly, this case is closed.

Dated: New York, New York
April 7, 2020

RUBY J. KRAJICK
_________________________
Clerk of Court
BY:
_________________________
Deputy Clerk