United States Commodity Futures Trading Commission v. Hunter Wise Commodities LLC et al, No. 9:2012cv81311 - Document 303 (S.D. Fla. 2014)
Court Description: OPINION AND ORDER re Judgment in Favor of the CFTC. Signed by Judge Donald M. Middlebrooks on 5/15/2014. (jua) (Main Document 303 replaced on 5/16/2014) (ots).
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UNI TED STATES DI STRI COURT CT SO UTH ERN DI STRI OF FLORI CT DA CASE NO . I 8I - M I : Z- JII CV- DDLEBROOK SY M NNON UNI TED STATES COM M ODI FUTUM S TY TR ADI G COM M I ON , N SSI Pl n i f ai t f , VS. HUN TER W I CO M M O D I ES,LLC,e al, SE TI t . D ef endant s. O PI O N AN D O R D ER NI THI CAUSE c e bef e t Cour f fnaldiposton oft i s spr e e durng S om s or he t or i s ii he s ue es nt d i a be h t i l hel f o Febr r 26, 201 t ough Fe ua y 28,201 a M r ch 3, 201 nc r a d rm ua y 4 hr br r 4 nd 4. Pl ntf Unie Stt Commodiy Fut e Tr di Commison (I ai if td aes t urs a ng si C CFTC' alges t ' le ) hat Dee t1vi ltds vealsci oft Commodiy Exc fndans oae e r e tons he t hangeAc (he1 t',7U. C.j1, t t i ') S. Ac e s q. a a nde by t Dodd- a W al Ste t Re or and Consu r Pr eci Ac t e , s me d he Fr nk l re f m tne ot ton t (1 0dd- a 'za CFTC Re ai .The tili t smatrf us d prmaiy on Huntr $D Frnk'l nd gultons ra n hi te oc e i rl e W ie, M r J ge ,a M r M a tn, whom t CFTC a s t 1d a comm odii s s he t t s . a r nd . ri he s ers e te c me ha lForpup os soft sOr r lD e e nt ' c itoft Entt D e e nt ,w hi h a e H unt hi de , t f nda s' ons s e he iy f nda s c r er W ieComm odii ,LLC, s tes Hunt rW ie Se vies LLC,Hunt rW ieCr di,LLC,a Hunt e s r c , e s e t nd er W ieTr ng,LLC,(ole tvel S- trW ie',C. Hopki Fi nci ,LLC a HadAse s adi c lci y,ll e s ' D. lun ) ns na al nd r st Le dngGr u LLC, c l ci l,t Ho kn ', a k t n M easGr u , n i o p, ( ol t y û e ve CD p is) Blc so e tl o p LLC, CBlc so e', wb i g Alin e l c, ç wb i g ', ie S ae Ca ia Tr s, i a k t n ' Ne rd e la c , n .(i rd e' Untd tts ptl u t LLC ) Ne ) (I I USCT' a Ll Commodiis LLC, oydsCommodii Crdi Compa LLC,Ll ' nd oyds ) te , Ll tes e t ny, oyds Sevies LLC,(ole tvel l -oyds'a wela i vi lDeenda sDa dA. oor rc , c lci y,t l ' s l s ndi dua f nt vi M e, t ) Cha w i k Hopki ,Ba i Kes r J hn K i H a ol Edw a d M a tn J ,a Fr d J ge .û e l r de c ns r s e , o ng, r d r r i r nd e a r ç a e D D ef nt ' r e s t CD H o ns Bl cks one N e brdge, U SCT. enda s' ef r o pki , a t , w i and 2 A sdi c s d i m or det i bel , Dodd- a bec me e f ctveon J y 1 2011and g a ed s us e n e a l ow Fr nk a fe i ul 6, r nt t CFTC ne a hort ove ce t n l r ged,ma gi d,orfna e comm odiy ta a tons he w ut iy r rai eve a r ne i nc d t r ns c i w ih r t i c t e s i udi a hort t pr bi f a i c t e a l usom r , ncl ng ut iy o ohi t r ud n onne ton w ih s h ta ac i ci t uc r ns tons i i er at com m er n nt st e ce. $(h))E .1) 1 i ve mir pr e i t na u e ofpr ci m ea s ta nvol d s e es ntng he t r e ous tl r ns to wih r t i c t m e s a aci ns t e al uso r 3 nd t tr uled i l s st alng m ilonsofdolar .4 ha es t n os e ot i li l s Thi O pi o cons iut s t Cour ' fndi of f c a conc usons of l pur ua t s ni n tt e he ts i ngs a t nd l i aw s nt o Fe a Rul ofCi lPr ed e 52() Al propos indi of f tand concl i of 1w derl e vi oc ur a l ed ngs ac usons a . ic n itn wi t o es t o t heena erj ce n o sse t t h s e f rh ri r ee td h . 1 . FACTUAL BACK GROUND Hunt W ieç nve t sa e notpl ye si t c sno, i t a t y own t c sno er s ç sor r i a r n he a i nse d he he a i . . . . Put a he wa ouri ve t sa e notbe tng on t hores not r y, n sor r ti he s ' , weownt r eta k Ei) Thepoi i he ac r c sc. nt s 3A ç eai cus om e ' i a non- elgi eco r c pa tc pa An i i i e c r tpari pa ' t t l t r's r i bl nta t rii nt t g bl ontac tci nt' el . m e ns i peri ntpa t a , n tne r: ( aci f isowna ountA) tng or t cc ( ) a i vi lwhohasa xi n ndi dua mount i t onadic ei r bass t s nvesed sr tonay i, he agg egae ofwhih i i exc sofr t c s n es () l $1 000, or 0, 000; (1 $5, 000a whoe esi ot a e me , contac,ortansacton 1) i 000, nd ntr nt he gr e nt r t r i n or rt ma get rs a s a e wih an a s towne orla lt de o na he ik s ocit d t se d ibii i ure orr s na y lkey t beowne ori ured nc r d y ea o bl i l o d nc r , byt , i he ndi dua vi l 7 oS. j a( 8)A)xi. r f e a eaicusome s ndi dua a U. C. 1 1 ( ( ) The eor, rt l t ri ani vi lwhodoesno ha m t ve unt i sed o adic e i r ba i, t aggr ga eofwhih exc eds$1 milon s nve t n s r tona y ss he e t c e 0 li , or$5 m ilon i t i vi ualent r i o t tansadi n i or rt managet rs ass i t li f he ndi d e s nt he r o n de o he ik oc a e wih an as e om st d t w d o la lt i ur e , orr s na y lke y t be ow ne ori ur e by t i vi r i biiy nc r d ea o bl i l o d nc r d, he ndi dual . 1 d. 4L1 ds Com m odii s LLC Ll oy te , oydsComm odii sCr di Compa te e t ny , Ll ri s LLC,M r Bur ge, M r Ga no s te t c ai sa ns t m ,a . ba and . udi etl d he l m gai t he LLC, oydsSe vce , nd on Fe ua y 5 201 t h br r , 4, , t ee de DE N e Cour ent r d a ConsentOr r. ( 254) TheCour aloe erdaConsntOr rast ( ) . t s nt e e de o: 1 e dge nd . ng DE 9) nd 2) wbr nd ent i a M r Ki ( 28 a ( USCT a Mr M oor ( 288) TheCo ts l e DE . ur hal er e a lj d me t g is CD Ho isa dM r Hopki and Bl ksone and M r K es r rd fut u g n a an t pkn n ns ac t unde e . . s pa ae Or . e r t der . t w e c r t pr es , a sa t m a m one no ma tr wher t ma kes s f , hat ontol he oc s nd t nd o ke 5 y te e he r t hit, . E- l fom J ge t Pa a Pang (une 1 20 8 ( TC Ex. 1 0 a 1 .Ths sae n mai r a r o ndor J , 0 ) CF 8 t ) i ttme t e bodi M r Ja ra M r M a tn' i e i ,t i u rt ndi ofwha Ht e W ie sood m es . ge nd . ri s ntntons her nde sa ng t mt r s t f ,a how t y, a Hunt r W ie i sor , pr he o t bac of a oxi t l 3 or nd he nd e s nve t s of d n he ks ppr ma ey ,200 r t i c t m e s who l tove $52 m ilon fom J y 16 2011 t ough Februar 25, 2013.I e al uso r os r li r ul , hr y n t i m i ,t y unr a ona ybe ive t t hous awayswi . her nds he e s bl le d hat he e l ns 4. The Casi -It O wner and It D eal s no s s s er a M r J r and M r M a tn' t a i 'w a a wel-plnne a e ut s heme de i . age . r i s t s no' s c l a d nd xec ed c alng wih fna ed, of- xc t i nc fe hange c modii ta aci om tes r ns tons t t t y or h ha he c e ta e usng r t i sr t d i e a l c t r , t De l r De e usome s he a e f ndant, non- ry de l r , a me a s Supple s6 H unt W je' s pa t a e s nd t l ir . er s s busnes mode r ve a ound t s ppos d buyi a s li ofpr c ous me a s i l ng i s l evol d r he u e ng nd elng ei t l, ncudi gol sl ,pl tnum , pa ldi ,a c d, iver ai la um nd oppe . H u e W i e c a m e t pur ha e a s lt s r nt r s l i d o c s nd el he e pr ci m e asfom s ver lSupple s e ous t l r e a ir . Huntr W ie wa orgi ly a Caior a lm ie labiiy compa sa td i J y 2007 e s s i na l lf ni i td i lt ny t re n ul , b i hasbe n a r git e Ne ut t e e ser d vada lmie la lt c i t d ibiiy ompa snce O cobe 201 l ma nt ns ny i t r 0. t i ai busnes a es e i La Vega , N e i s ddr s s n s s vada a I v ne Ca iom i M r M a tn i t r git e nd r i , lf a. . ri s he e ser d age .He a M r J ge a e mana r a m e nt nd . a r r ge s nd mber ofHuntrW ieCom modii s e s t e .H unt r W i e s e s Comm odiis i t s e m e be ofbot Hun e W ie Cr di LLC a Huntr W ie Tr ng te s he ol m r h tr s e t nd e s adi , , LLC .H un e W i e Co m odii , H unt r W ie Cr t a H unt r W ie Tr di al s r t tr s m tes e s edi, nd e s a ng 1 ha e he s me busne s a e s i La Vega and t s me m a lng a e s i Iv ne. H unt r W i e a i s ddr s n s s he a ii ddr s n r i e s 5TheHuntrW iel nve t s' r Ja rme i do noti l t r t lc t r e s t sor 'M . ge ntons i ncude he e ai usome s who , e e e i o Hu e W ie' pr c ousm eal ta a tons butt ewho i sed i HuntrW ie nt r d nt nt r s s e i t s r ns c i , hos nve t n e s. 6F ft sOr r k hi de , t suppler' i l sA- a k Pr ci M etl i s' ncude M r e ous a s o pur eso r pos nc (ç r ' A) , l . $ M ak' StndadBa PLC (f a dBn ',a Nai sCommodiyM akesLt (s txi' . , a r nk, lstndar nk' nd txi ) t r t d ç i s' Na ) . 3 Se vce alo s r st lvi ma lng a es .7M r.M a tn a M r J rar t s em e be s r i s s ha e he r ne ii ddr s ri nd . age e he ol m r a ma nd nage s of Hunt r W ie Se vi e , LLC a a e t Chi f Ope a i Ofier a Chif r e s r cs nd r he e r tng fc nd e Exec i Ofi e ofHt e W ieSe vce , r s c i l Bot M r utve fc r mt r s r i s e pe tve y. h . M a tn a M r J gert tfed ri nd . a esii a ti . t ral M r M ari ha t ry-i ye r of e re e i t pr i us m et s i ty . tn s hit tve a s xpe i nc n he ec o al ndusr . Hi s pr ci m e as e re e i l swor ng a M one Pr ci e ous t l xpe inc ncude ki t x e o us M etl ,f m e l Pa ii Coas a s or ry c fc t Coi Exc nge Uni e Cr di Cor ai n, whe ehe wasi c r e ofbusnes de l e f n ha , m t e t por to r n ha g i s veopm nt or t buyi s li , a tna i ofpr i m e a s8M r.M a tn f unde a waspr i ntof he ng, e lng nd i ncng esde ecous t l . ri o d nd Ca t A s e , whi h w as i t busnes of buyi s lng, a fna ng c pial s t c n he i s ng eli nd i nci omm odii tes , t a a tons t oug a ne w or of de e s. The de e s woul fnd c t e s a s t m t r ns c i hr h t k al r alr d i usom r nd end he o Ca t As e .An outi i sore nt ly t r i t d hi fom t tc pial s t sde nve t ve ua l e m na e m r ha ompa Ca t lAs e ny. pia s t washi l s ve ur i c s a t nt e n omm odiis untl2006, whe he a M r te i n nd . J ge decded t deve o t a r i o l p he busnes pln f HuntrW ie. i s a or e s M r J ge ha e re e i t s c ii ma ke a wel. Prort wor ng f Hunt r . a r s xpe inc n he e urtes r t s l i o ki or e W i e Com m odii , M r J ge r a co i s tes . a r an, nd ntnuest nm Hunt rW ie Se rte o , e s cu ii s a s urte tr ec iis im , t t i r git r d by t Fi ncil l ty Regult r Au hort M r J r put i t s d ha s e se e he na a ndusr a o y t iy. . age n he ee ca t lf Hunt r W ie a he wa r s nsbl f r ii t e uiy ca t lf Huntr W ie pia or e s nd s e po i e or a sng he q t pia or e s . 7l m yFe ua y 1 201 Or ron t Pari s M otonsf Sum ma yJ n br r 9, 4 de he te ' i or r 2 4Or e ' ( 28 ) lf t tHt erW ieoper t asacom monunt r nseie rlr 1 01 d r' DE 1 ound ha mt ) d me i(F b t y 9, g tç a s aed e e pr 1 A lhough M r.M ar,n ran t busness' day 9) t ( 281a DE t t i he i s . . t da ope a i ns M r J ge ' poston w ihi o- y r t o , . a r s ii t n untrW ie de e s monsr t d t the ha knowldge ofand diecedt ta e ha d e r t he ec onom i as t oft c pecs he e iy. r or lf ntt The ef e, ound t tM r M a tn a M r J ge c r ld Hunt W i e ha . ri nd . a r ontole er s d. BAsdi ri ntr , 1 nt a e s us e i f t rde a lbe o , duet aCons ntOr rM r M a tn e e ed i o bec us of c s d n urhe t i l w o e de . hi conduc a Uni e, M r M at wa p r n n l e j ie fom ma igmirp e e tto s s t t m t . ri s ema e ty n on d r n kn se rs n ain a o itngdicl ur sr lt d t ma e i f c sr ga di i or a i n rel vantt a cus om er' nd m ti s os e ea e o t ral a t e r ng nf m t o e d o t s e i i t e e i t a i s m e i c m odii s Se Cons ntOr a t De e nt E c s on o nt r n o n nve t nt n om te . e e der s o f nda s . Keih Owe ,Ed M a tn, a EdM ye s CFTC Ex. 1 Fe r Tr Commisi v t ns ri nd r, 59, de al ade s on . Uni t Cr di C e t me H - or , 9 5759( D. .De 20,1 . p.No. 2C. Cal, c. 994) 4 Alhoug he ha no pror e re e i t pr ci me al i ty,M r J ge was c uc a t t h d i xpe i nc n he e ous t s ndusr .a r r il o Hunt r W ie' s ce s be us he pr de i e s s uc s ca e ovi d mporan c ac s and dee ned t sr t gi t t ont t tnni he ta e c die i n oft com o ai a li pa t r hi wih M r M a tn. r cto he r ton, 1 n rne s p t . ri l a ton, wo o he ke e pl st sii d d i t til Syl aW ila sa St ve n ddii t t r y m oyee e tfe urng he ra : vi lim nd e Fic M s.W ila s wa Hunt r W ie s Diecor of Ope ai .She r t die l t M r t h. li m s e s' r t r tons epored r cty o . M a tn. r Fic wa r ponsbl f i t racng wih t de l r .Heofe e deaertai ng a ri M . th s es i e or n e f i t he a e s f r d l r ni nd knew wha s r i es Hun e W ie of e e t t deae s Ac or ng t Hunt r W ie' r cor , t e vc t r s f r d o he lr . c di o e s s e ds Hun e W ie r eve r t i c t r fo ove 11 de e s.Sum ma y Exhi t- Hunt rW ie t r s ec i d e al usome s r m r 0 alr r bi e s De lrLo sRe o t ( t Cu t me Na s b De lr(uy z lprs n l CFTC Ex. 7 Boh ae s p rs wih so r me ) y ae J l ol - e e ts 6. t e pl st sii d t Hunt rW i e sope ai i t co modii i ty. m oyee e tfe o e s' r tons n he m tes ndusr On De e r 5,201 t CFTC fld t Co ai ( 1 i t i tnt a ton, c mbe 2, he ie he mpl nt DE ) n he nsa ci 9 i t Defnda s f Dodd- a vi ai .o The CFTC s ks e nt or Fr nk ol tonsl ee al gi t re n Count a ns le ng hite s ga ij tvea e tbl r le a pe lisunde t Ac . n unci nd quia e eif nd nate r he t 9'he count a i tHunt rw ie M r J er a M r M ari c itd of r s ga ns e s , . ag , nd . tn onsse : e Coun One oltonsofSe ton4( oft Ac,7U. C. 6 a ,hr u hilg lo f t ,vi ai ci a) he t S. j () t o g l a, fnt , e hange ta ac i agans a1 De enda s' xc r ns tons i t 1 f o Se to 4 o t eAc, U. C j6 () a ans Hune W ie f ci n b f h t 7 S. b a , g i t tr s , 2. CountTwo, oltons vi a i M r M a tn,a M r J r . ri nd . age ; 3. Co n Th e , ilto o S cin6 c( )o t eAc, U.. j9 1, ndRue 1 0.,1 u t re voains f e to ()1 f h t 7 SC. 4 ) a l 8 1 7 C. R.j18 1, i tHunt W ie, r M atn,a Mr J ge ; F. 0. agans er s M . ri nd . a r 4. CountTweve viltonsofSecin4d o t Ac,7U. C.j6d() f f iur t r se l , oai to f he t S. a , or al e o egitr a ns HuntrW ie M r M a tn,a M r J r a gai t e s , . ri nd . age ; nd Co n Thre n, i ig a da et gu d rS cin 1 ()o teAc , U. C. 1 c u t ite adn n b ti n e e to 3 a f h t7 S. j 3 , n aga ns H unt r W i e, r M a tn,a M r J r i t e s M . r i nd . age . ( mp .DE 1 . re c o t id vd a, n-niyDee d n sa df re c o t Co ns Co l, ) Fo a h f he n i iu lno e t t fn a t n o a h f he u t, t Compli alge c r lpes la lt purua t Seci 1 b)oft Ac , U. C. he ant le s onto ron ibiiy s nt o ton 3( he t 7 S. j1 eb . a ke pa d dt CF S u idcinb icu i S ci n2 c( )D)t t eAc, 1 Do()Frn x n e he TC'j rs ito y n ldng e to ()2 ( o h t7 03d dU. C. 2 c( )D) whihp o i e ,np rie t r: S. j ()2 ( , c r v d s i e t n pat n On De e r6,2 2,t CFTC fld a M oin f r Prl n r lj n to ( 4 c mbe 01 he ie to o ei a y n u cin DE ) mi s e n t e j i te Dee d n s fo o frn a d e e u ig ilg l rti c mmo iy e kig o n on h fn a t r m fe ig n x c tn l a eal o dt e ta a tons On Fe u r 22,201 afe t Co thel ahe rng on t M oton f Pr i i r r ns c i . br a y 3, tr he ur d ai he i or elm na y ( Reai c D) t l ommodiyt ns tons t ra aci ()Applc lt i iabiiy Exc p a p o i e i ca e(i,h ss b aa rp s al p yt a a re n , e t s r v d d n lus i) ti u p r g a h h l a pl o ny g e me t c r c ,ortans ton i a co modiyt ti onta t r aci n ny m t ha s () l (1 1) e ee i owih,orofe e t (ve i note erdi owih) apes ntrd nt t fr d o e n f nt e nt t , ron t ti nota ei bl c r c pa tc pa orei bl c ha s n lgi e onta t rii nt lgi e omm e cile iy; r a ntt a nd e erdi o,oro frd( ni note e e i o ,onalveag or nt e nt fee eve f ntr d nt) e r ed m a gi d ba i , fna e by t ofe or t co t r t oraperon r ne s s or i nc d he f r ,he un e pary, s a tng i c e twih t ofe ororc e pa t on asm ia ba i. c i n onc r t he f r ount r ry i l r ss (i Exc ptons i) e i Thi s s ubpa ag a s lnota y t r r ph hal ppl o () l a a re n , o ta t o ta s ci nd s rb di p r g a h( )o n g e me t c nrc, r r n a to e cie n aa rp 1 r s b aa r p s( ,B) o ( ,ncu i a ya r e n , o ta t o u p r g a h A) ( , r C) i ldng n g e me t c n rc, r ta s cins e iial e cu e fo s b aa r p ( , B) o ( ; r n a to p cfc l x ld d r m u p r g a h A) ( , r C) y (1 a s c iy; 1 ) ny e urt (1) aco rc ofs l t t11 nta t ae ha ( ) rs t i a t dei r wihi 28da ors h ohe l r aa e uls n cual lvey t n ys uc t r onge pe i ast Comm ison ma de e m i byr e orr gulton rod he si y t r ne ul e ai bas d upon t t c lcomm e e a pr tc i c h ors m a ke s e he ypi a r i l aci e n as pot r t f t c or he omm odiy i ve or t nvol d; ( bb) ce t a e o c a eoblgai t delve bet nas le a a raes n nf r e bl i ton o i r wee elr nd buye t tha t a lt t delve a ac e de i r r ha ve he biiy o i r nd c pt lve y, rs ci l i c e pe tve y, n onneci wih t lneofbusnes oft s l ton t he i i s he eler a buye g) nd r. 7U. C. 2 c( )D) Fo amo edealdd s u so r g r igDo d Frn sc a g st t Ac S. j ()2 ( . r r tie ic si n e adn d - a k' h n e o he t a t r uie e t tr t lco m odiy ta a t o occz on a r a e e ha nd he eq r m nt ha e ai m t r ns c i ns lr egul t d xc nge,s t ee he Co tsFe uay 1 201 Or r ( 281 . ur' br r 9, 4 de .DE ) 6 lj n to ,t Co r is e a Or e Te r rl Ap on i S e ilCo p rt M o io .( n u cin he u t su d n d r mpoa i p itng p ca r o ae ntr DE y 7 )1 Th co r is e a or e o Plitf' M o in f rP ei n r lj nci n ( 7 )o 7 .l e u t su d n d r n anifs to o r l a y nu to DE 8 n mi Fe r ay 2 ,2 3 ûn i t tt CF h sj rs ito o e t ec mmo iista s cin a b u r 6 01 , dng ha he TC a u idcin v r h o dte rn a to s t is ei tei tn matra d wa e tte t ap ei n r ij n to a d oh re utb er l f su n h nsa t te n s n i d o rlmia y n u cin n t e q ia l ei . l e The Cour alo r afi med t Spe i l M oniors aut iy as i r a e t t c por t t s e tr he ca t ' hort t elt s o he or a e Deknda s' ( eDE 78. t33- . t nt.z se a 37) The Cour e er d a Or on t Pari 'M otons f Summ a y J t nt e n der he tes i or r udgmenton Fe a y bnzr 1 ,2 4.( 2 1.I t eFe r ay 1 ,2 4 Or e ,t Co r g a td s mma yj d me ti 9 01 DE 8 ) n h b u r 9 01 d r he u t rn e u r u g n n f voroft CFTC a a i tt HuntrW ie De e a he nd gans he e s f ndan s a t CountOne oft Compl i , t so he ant vi ai ofSeci 4()oft Ac:ilgalof-xc ngeta acins a Coun Tweveoft oltons ton a he t le , fe ha rns to ; nd t l he Compli t vi ai nsof Se ton 4d oft Ac f f l e t r it r Ther f e,t Cour ne d a n , ol to ci he t or aiur o eg se . e or he t e hea i fa ng, onl a es Co Two,vi a i of Se ton 41 of t Ac 1 by c tng, dt r udi or y ddr s unt oltons ci 7 he t3 cil t , e tfe i he ra e r ng 1 M el ni D a i n, t Cour- ppoi ed Spe a M onior t sii d durng t ti lr ga di 1 a e m a he ta nt t l s st r t i c t e sduet Hunt rW ie' he os e o e a l usom r o e s s Hunt rW i e sm a gi t a ng a coun s e s ' r n r di c t, s he a Hun e W ie' pr s s c me, nd t r s s ott . 1 O A rl1 201 t El ve h Cic ta tr e t Cour' Or ron Pl ntf sM oton f 2 i 5 4 he e nt r ui fim d he ts de ai if i or n p , , Prlmia yIj n to CFFC v Hu e WieCo di e, ei n r n u cin. . ntr s mmo t s LLC, -F.d-, 01 W L 1 4 3 , i - 3 -2 4 42 4 5 * 2( 1h Ci. 01 )( e en fe,o u trWieà .niso i in,heElv n hCic t ( )f u d 1 1 t r 2 4 h r ia tr Gi n e s ' l t p no t e e t rui: 1 o n l n er rwihteCo r' fcu l i dng a da r e wi i lg l o l ins ( ) l t a t e o ro t h u ts a t a fn i s n ge d t t e a c ncuso ; 2 hed h t h h s CFTC had e or me a hort o rt diput d pr ci me a ta a tonsa t tno nf ce nt ut iy ve he s e e ous t l r ns c i nd ha e c pt nsa pl d a d( )a fr dteCo r' ga o p ei n r ij n to b c u et x e i p i ; n 3 fime h u ts rnt f rlmiay n u cin e a s he o e CFTC ha pl a aprm af i c s ofavi a i oft Ac . #. t*1 d e ded i ace a e olton he t f a 2. 1 Seci n 41 o t Ac saes i pe tne tpa t 3 to 7 f he t tt , n ri n r: ()Unl ulaci a awf tons I s l bet a ul t ha l ml wf - ( 2) f a pe s i ori c ci wih a or rt ma ,o t ma ng or ny ron,n n onne ton t ny de o ke r he ki of a co r c ofs l ofa co modiy f f ur de i r ors p, ha , ny nta t a e ny m t or ut e lve y, wa t t 7 o he t r f a e a l usom r n onne ton wih r t l c m odii s ci t e ai om te atem ptng t c a o de r ud r t i c t e s i c t i ta a tons CountThre,vi ainsofSe ton 6()1 oft Ac1 a d Re ul ton 1 . 11 by rns ci ; e olto ci c( ) he t4 n g a i 80 5 i made ort bema f oro be l ot orwih,a ot rpes n,ohe s , o de, or n haf l t ny he ro t r ta o o s b e t oter lso ad sg ae c nr c mak t h n n r u j c t h ue f e in t d o ta t r et c a orde r ud oratemptt c tordefa t ot rpe s n; o he t fa t o hea r ud he he r o ( B) wilulyt ma orc> et bema t t ot rpe s a f s lf l o ke us o de o he he ron ny ale r por orsatm e o wiluly t e e orca e t be e er d f e t t e nt r lf l o nt r us o nt e or t ot rpe s a f s rc d;g ) he he ron ny ale e or or ( C) wi f l t d c ie o atmp t d c i t oh rp ro b a y me n l ul o e ev r te t o e eve he te e s n y n a s l y wha s ver i r a d t a o de or co r ct or t diposton or toe n eg z o ny r r nta he s ii e c i of any or r or c r c , or i r r t a a of a nc xe uton de ont a t n ega d o ny ct ge y pe f r e wih r pec t a or r or c r ct f or i t c e of r o m d, t es t o ny de onta or , n he as paa rp ( ) wi teohe p ro . rg a h 2 , t h t r e s nl h l 7U. C.j6b()2) S. a( . 1 se ton6()1 oft Ac pr de ,i rlva pat 4 ci c( ) he t ovi s n ee nt r: l s lbe unlwf f a pe s diecl ori r c l t us orempl or t hal a ul or ny r on, r ty ndie ty, o e oy, a tmpt t us or e o i conne ton wih ... a c r t of s l of a te o e mpl y, n ci t ontac ae ny c m odiy i i t r t t c m e c ...a m ani a i or dec ptve de ce or om t n n e s a e om r e ny pul tve e i vi co rva ,i c r ve i ofs h r l s and r a i as t Co m iso nti nce n onta nton uc u e egultons he m s i n s l pr ha l omul t . ga e 7U. C.j9( ) S. 1. 1 Rul 1 . 1 r a ,i peri ntpar : 5 e 80 e ds n tne t ()I s albeu lwf lf ra y p ro dr cl o idrcl ,i c mwcin wi a thl na u o n e s n, ie ty r n ie ty n o to t h a ...c r ct of s l of a commodiy i i e sat c ny onta ae ny t n ntr t e omme c re i t ntona l orr c es l n e i ly e kl sy: ( ) Us or e oy,or atmptt us or e o a ma pultve 1 e mpl te o e mply, ny ni ai de ce s he e ora tfcet defa vi , c m , rii o r ud; ( M a oratmptt ma a untueormil di sae tofa 2) ke, te o ke, ny r sea ng ttmen matra f to t om i t sae am aeralf c nec s ar i or rt e i l ac r o t o tt t i a t e s y n de o ma t saeme sma notunr ormil di ,gr ke he tt nt de tue sea ng' o l ( )Eng g ,o atmp t e g g ,i a a t p a tc ,o c u s o 3 a e r te t o n a e n ny c, rcie r o re f busnes , whi h ope a e o w oul o r t a a faud or dec i i s c rts r d pe a e s r et upon a pe s ny r on. 8 t o e oyi a s he e o a tfc t de r ud i c mpl ng c m r rii e o fa n onne ton wih c r t ofs l ofcomm odii s ci t ontacs ae te ; dCo n Th re n adnga d a tig u de Se to 1 ()o t Ac, U. C. 1 ca . Th u t ite , i i n bet n r cin 3a f he t 7 S. j 3 ()1 e n 6 an CFTC al gest tM r M a tn a M r J ge deveoped a s he usng Hun e W ie' c por t le ha . ri nd . a r l c me i t r s s or a e we t de r ud o r3, r t i c t r a r ule i t r t i c t e s l i ove $5 b o f a ve 200 e al usome s nd es t d n he e a l usom r osng r 2 m ilon fom J y 16, 1t z li r ul 201 h ough Febnmr 25,201 y 3. #. TheCasno' Ope atons i s r i Ht e W ie' s he was a mulil ve m ode .Fis, t Deaer De enda s wo d mtr s s e me t-e l l r t he l f nt ul c ac a s i tnovi a ama e i sor t entri o fna ed comm odii sta a tons ont t nd olci ce nd t ur nve t s o e nt i nc te r ns c i usng Hunt W i e s doc nt a tani m ae i lt gui t m .Ne ,t deae s wo d i er s ' ume s nd r i ng t ra o de he xt he lr ul s nd t r t i c t r ' f e he e al usome s unds t Huntr W ie, who woul i t n diti e t de l r ' o e s d n ur srbut he a e s a i a e s r oft f sand i e es.Lasl Hunt rW ie woul us t r mai ng f pplc bl ha e he ee ntr t ty, e s d e he e ni unds t o e e i o m a gi ta ng ta a tons wih t me a s Supple s Hunt r W i e see e a nt r nt r n r di r ns c i t he t l ir . e s t r d nd contole e r a pe toft spr s . r ld ve y s c hi oce s t h h ae f n a t n The Re ai Cu t me s'I tr to s wi te De lr Dee d ns a d t l so r n eaci n H unt r W i e e s he l f ndan s m ir pr s nt i ,t e i sor ,ie, t r t i t ' se e e atons hes nve t s .. he e a l Becaus of t Deaer De e e c t r,t usome s hought t y we e pur hasng pr cous me a s fom t Deaer Def nda s on a he r c i ei tl r he l e nt 1 C. R.j1 1. 7 F. 80. 1 seei 1 a oft Ac pr de ,i rlva pat 6 ton 3() he t ovi s n ee nt r: Any peron who c s omm is or who wiluly ads a t ,co es c t, lf l i , be s uns l, omm a , nds i e ,orpr ur t c nduc s oc es he ommisonof aviltonofa o t pr vii oft s si l oai ny f he o sons hi c pt ,ora oft r es r gulto ,oror sis d purua t t sc pt r ha er ny he ul , e ai ns der s ue s nt o hi ha e , orwho a t i c c s n ombi ton orc er wih a o he pe s n i a s vi ai n, nai onc t t ny t r r o n ny uch olto orwho wiluly c us s a a tt be done oromit whi h i diecl pe f med lf l a e n c o ted c f r ty ror orom itd by hi oranot rwoul be avi l ton oft pr sonsoft sc pt r te m he d o ai he ovii hi ha e o a y o s c r ls rg lto ,o o d r ma b h l r s o il f rs c r n f u h ue , e uains r r es y e ed e p nsb e o u h vi a l n a a prnci l ol to s i pa . 7U. C. 1 () S. j 3ca . 9 fnanc ba i.For e m pl t De e De e nt i ed ss xa e, he alr f nda s'webst c am e t r t l cusome s ies l i d hat eai t r woul be buyi m eal,bu t tt me as woul be so ed i a de ior whih woul d ng t s t ha he t l d tr n post y, c d r quie a sor e f See eg. Bl c t W e ie,CFTC Ex.52 a 4.The DeaerDef nda s e r t ag ee. , . , a ksone bst t l e nt cai e t tonce t r t lc t e s s l m d ha he eai usom r ubmitd a down pay e ,t r t lc t e s woul te m nt he eai usom r d r ceve a l n t c r t r s of t c t ofbuyi t me al.The r t l c t r w e e e i oa o ove he e t he os ng he t s eai usome s r c ge e r tnti e es on t s pur e l ns17 har d xo bia nt r t he e pos d oa . Ret l c t e s e ai us om r xpec ed t r p t be f t of t r i t e i t s m e a s t o ea he ne is hei nvesm nt n he e t l c omm odiy ta a tons Ht e W ie s own ta ni m ae il , whih i ofe e t Deae t r ns c i . mt r s ' r i ng tra s c t frd o lr Def nt t us on r t i c t enda s o e e al usomer ,cai s l med t tta ng i pr ci m eal wa a i ha r di n e ous t s s û um medi rs i t nt'a t tr ti cuso e s s w d r 300% r t n. CFTC Ex. 11 a 7, 1 ik nvesme ' nd ha ea l t m r a l ove eur ' ' 2 t 2. Fu t r t Hunt W ie c e e tani m ae il pr m ie û rhe , he er s - r atd r i ng tra s o s d t ialowne s p'oft m eal physc r hi ' he t s t twe elqui and woul t l ha r i d d i wayshaveva ue. 1 a 31. a l ' d. t ' The r t i c t m e s e e e i o s ve al a ee e s w ih t D e e D e e nt e a l us o r nt r d nt e r gr m nt t he al r f nda s agr e e s t t we e pr pa ed by Huntr W ie. A Cusom e Loa Sec iy & St r ge e m nt ha r e r e s t r n, urt oa Agr e e pr dedt tispur ewa t e m nt ovi ha t pos s o: stf rh t etr t e whih ( d aelwilln t Bor we ,fo tmet e o t h ems md r c t e lr l e d o ro r r m i o he tme physc lc i , ia ommodii (he çco tes t : mmodiy Loa ',a s ofmone t t ns' nd ums ) y o purhas physc commodiis(hetcas Adva es),i udi butnotlmie c e ial te t s h nc ' ncl ng, i td t dei r t a de ior c t , f es sor ge, c lt r , s urt i t r t o, lve y o post y, oss e , t a ola e al ec iy n e es, c ti rs a c t as oc aedwih e c l n ta a ton. era n iks nd os s s i t t a h oa r ns c i Cusome Ac ountAg e me Te ae,CFTC Ex.1 a 4 ( ena tr ta Ag e me ) t r c r e nt mplt 50 t heri fe , toan r e nf'. l Fr t s Loa Ag e m e ,t r a lc t e s we e 1 d t bei ve t tt i er s t we e om hi n r e nt he eti usom r r e o le ha he nt e t hey r payi wa f t l nst i de l r fna ed f t e tans tons a t m eal sor d on ng s or he oa her a e s i nc or hes r aci nd hat t s t e be l oft r a lc t e s a t ly e s e ha f he et i usom r c ua l xi t d. 1 Asde c i beow , t r t lc t m e sdi nota t ly o any me a sand Hunt rW ie 7 s rbed l he eai uso r d c ual wn tl e s ne e cu e any l ns ver xe t d oa . 10 As pa tof t s he e Hunt r W ie c e t d t mplt s a i s d doc e s o t r he c m , e s r a e e a e nd s ue um nt n he De e De e nt ' behaf t oug is onlne daaba e c le t ç t . Huntr W ie alr f nda s l hr h t i t s a ld he t al' por ' e s m ant i a c r l t s çporal' whih alowe de e s a r t i cusom e s t ac es i aned nd ontoled hi ç t ,' c l d alr nd e a l t r o c s t ra c hei c ounta tans ton i or i and alowe t De l De e nd r ac i nf maton l d he aer f ndant t pr pa e r pors so e r e t on t i r t lc t e s Hunt rW ie ge r t d t a coun docume st twe egi n t r t i her eai usom r . e s ne a e he c t nt ha r ve o e a l c ume s eve t ons r , n hough t we eon t De e Defnda s lte he a a ar d t be fom hey r he alr e nt ' e tr ad nd ppe e o r t De e De e he alr f ndant.The doc e s i l s um nt ncuded Tr de Confnna i notce ,t x f m s Notc a i ton i s a or , ies ofTr ns e s a a coun sae e s Furhe ,Hunt rW iepr de tani m ae il a ot r a f r , nd c t t tm nt . t r e s ovi d r i ng tra s nd he s r c t tt De e De e nt us d t s ii r t i c t e sa m ant i t ra count i e vies ha he alr f nda s e o olc t e a l usom r nd i an hei c sn or rt c i t s he e Se Fic Te tm o Fe 27- 201 M a .3,201 A1 oft e de o ontnue he c m . e th si ny, b 28, 4, r 4. l hes doc e sc ai d m iladi saeme sorde ptve omisonsr ga di whehe t r t i um nt ont ne se ng t t nt ce i si e r ng t r he e al c t m e sa t ly o d pr ci m eal uso r cual wne e ous t s. Thr h t pora ordi c sonwih t rde l r ,t r a lcusome st oug he tl s us i t hei a e s he eti t r houghtt y we e he r a e t buy a s l m eal.I t rta ng equiy f l be o ac ti pe c nt ge t y woul ge bl o nd e l t s f hei r di t el l w era n r e a , he d t ama gi c la t y woul ha t de i m or m one i o t rac ou .l t i posto f l r n al nd he d ve o post e y nt hei c nt f her ii n el t a e n l r e t pe ce age pa toft r t lcusom e s'ac ou woul be lqui t d o n ve owe quiy r nt , r he eai t r c nt d i da e untlt r we e e i he e r noug f h unds i t ac ounts t tt equiy pe ce age woul be overt n he c o ha he t r nt d he m a gi c l a ount Hunt r W ie had t abiiy t i r n al m . e s he lt o mpos m a gi cal a lqui t r t l e r n ls nd i dae eai cus om e s pos tons t r ' ii . ( )Hu trWie'M a a me t fteDe lrDee da t 2 n e s s n ge n o h a e f n ns l i a r ntt tt whol s heme woul f la r wiho Hunt rW ie' e rpr e t s ppa e ha he e c d al pa t t ut e s s ve - es nt ove sght Fore ri . xampl Fr nk Ga no,t owne of Ll e, a udi he r oydsCom modii ,t tte r ga di tes esii d e r ng how m uc he and t De e Def nda s de nde on Hun e W ie t ope at t s he e. h he alr e nt pe d tr s o r e he c m 11 Ll oydswasr s nsbl f r c uii t de l r who s i t t r t i c t e s f Hunt e po i e or e r tng he a e s olcied he e a l usom r or er W i e Al o Ll ' alr us d Hun e W ie' s r c . Ga no Te tmony,M a . 201 s . l f oyds de e s e t r s s e vies See udi si r 3, 4. Ll oyds s r d a a i e medir be wee Hu e W ie a t Deae De enda s i e ve s n nt r a y t n nt r s nd he lr f nt ; t pr de no ot rs r c t t de l r .1 Alhough Ll ovi d he e vies o he a e s d. t oydswoul tnd de e st do busnes di alr o i s wih HuntrW ie i wa HuntrW ie t tr n t ba kgr t e s ,t s e s ha a he c ound c c on t e de e st e ur he ks hos alr o ns e t rc edi lt l was Hunt r W ie t twoul de l t tc tnumbe wih a prc f a l hei r biiy. t e s ha d ve op he ike r t i e or l ta a i f Ll r ns ctons or oyds t r a t t de e s and t de e s t t r t lcusome s l wa o ely o he alr , he alr o he eai t r . t s HuntrW ie t tpr ded t s r ce Ll e s ha ovi he e vi s oydscli e i pr ded i ispr otonalbr hur s am d t ovi n t om i oc e , whi we e i ntc t t e c am e i Hunt rW ie 'own pr ch r de ial o hos l i d n e ss omotonalbr hur .Compar i oc es e Ll oyds Pr otona Br hur CFTC Ex. 1 w ih H unt W i e Pr otonalBr hur CFTC om i l oc e, 05 t er s om i oc e, Ex.l .l a ton,i wa Hunt W iet tLl 51 n ddii t s er s ha oydsde pende on t pu cha e t met sa t d o r s he al nd o pr de c i ton t r ti c t m e s t t t me a s e se Si l r t t i ntc l ovi ontnna i o ea l uso r ha he t l xit d. mia o he de ia pr omotona br hur s Ll i l oc e , oydssmpl r br nded t con e sofa Hunt rW i eNewse t t t i y e a he t nt e s lter ha c i d t m eal i onfnne he t s nvent y a s nt i t is cusome s unde Ll ' l or nd e t o t t r r oyds ogo. Compar e T a se Not e ,Hu tr W ie Ne lte ,J l 2 ,201 ,CFTC Ex.1 8 wi E- i wi r nf r i s ne s wsetr uy 0 c 1 1 t mal t h h Lly sNe lt r( g 2 , 01 )( TC Ex 1 9 . o d wset Au . 3 2 1 CF e . 1) Syl a W ila s a f r e e pl e a ow ne of Ll vi li m , o m r m oye nd r oyds A s e M ana m e a a st ge nt nd f m e br - a e f Hunt r W i e tuoug Uni r a Cl a i Fi S. .a Ba c ay M e al , or r oker de l r or e s l h ve s l e r ng nu A nd r l ts l ,alo t sii d a nc. s e tfe bout how muc c r Huntr W ie ha ove is deaer .Se W ila s h ontol e s d r t l s e li m Tesi ony,Fe 27,201 Re ai cus om e s'a cou s a e e s we e s die l fom Hunt r tm b. 4. t l t r c nt t t m nt r ent r cty r e W i e t t cus om e s He Fl i ba e c por ton,Bar l M e a s di note cu e t l ns s o he t r . r orda- s d or a i c ay t l , d xe t he oa i pur td t ofe isc int ;s ad it d,çW e di tha t tki ofm one ' I a 1 6t pore o f r t le s he m te û dn' ve ha nd y. d. t 8: ' 1 I t d,Ba clys l 2. nsea r a ooked t Hunt r W ie t c r t lndi and de lwih t m eal. o e s o ontol he e ng a t he t s 12 H unt r W i e r pr s nt i , J y Br e Gr s a is l al c e s e e e atves a uc os m n, t eg ouns l1 a J D e D i , js e ,8 nd oe os t Diecor ofU. De l e ,c im e t tHunt rW ie ça ol ey' ha t m e as.1 a r t S. veopm nt onfr d ha e s çbs ut l ' d he t l d. t l 1 1 2.M s W ila s r c l M r Gr s a i i tng t s pr de hi phone nu be t 3: 2- 4: . li m e aled . os m n ns s i hat he ovi s m ro he br r a t n t t r t lcuso e ss t the c d confr Hunt rW ie' owne s p of r oke s nd he o he eai t m r o ha oul im e s s rhi t m eal t t m . d. he t s o he I TheDe e De e nt s ntt de isand o he fmdspr ded by t r t lc t alr f nda s e he post t rt ovi he eai usomer , s a welast i ac ounti or ton,die y t HuntrW ie ort Ll ,who woul t n s nd s l he r c nf ma i r dl o e s o oyds d he e i t Hu e W ie No ma trt i e medir howe ,t r ai cusome s f t o nt r s . te he nt r a y, ver he et l t r ' unds woul e d nd up i H unt W i s account n er se' s. ( HuntrWie' Tr actonswiht Met sSu ir 3) e s s ans i t he al pples W hie Hunt r W i e w a die tng is br r a dea e st c tt r t lcus o e s i l e s s r c i t oke s nd l r o hea he e ai t m r , t was alo usng t r t l c t r 'f s i he eai usome s unds t e ut a he lvelof is s me.I t a of o xec e not r e t che nse d bu ng pr c ousmet son a fnanc bassi t r a lc t e s name,ast y we e t d a yi ei al i ed i n he eti usom r ' he r ol nd a t a ee t Hunt rW ie t t c t e s money,pr ded t De e De enda swih s hey gr d o, e s ook he usom r ' ovi he alr f nt t he r ei ts i nce s s r he ir . t rs r 1 a d boughtt i ow n pr c ousm e al on a fna d ba i f om t Supple s The e hei ha e,9 n s m a gi d ta ng ta a tons a l r ne r di r ns c i lowed Hu e W ie t ofs t is rs a us is downsr m nt r s o fe t ik nd e t tea 1 M r Gr s an a hi l fr , JB.Gr s n, A. wer alo lgalc m s a t 8 os m nd s aw i m . os ma P. , e s e ot el nd he r it r d age f Ll .Durng t e ry sa soft ss t M r Gr s a a a ed a eg se e nt or oyds i he a l t ge hi ui, . os m n ppe r s c ouns f Hunt rW i e H o e r i t Cour ' Se e be 6, el or e s . w ve , n he ts pt m r 2013 Or r Gr tng Pl i if s de an i a ntf ' M oi t DiquaiyJB. osma a J. Gr s n,P. asCounsl( 21 ,t Cour ton o s lf . Gr s n nd B. osma A. e DE 0) he t f ound t ,pur ua t Fl i Ba Rul 4- . ac lc ofi er s e se a M r Gr s n hat s nt o orda r e 19, ontit nt e t xitd, nd . os ma a hi l w 51, w e e di qua ii d f om r pr en i M r M a tn a M r J ge i t sm ater nd s a 7, r s lf e r e es tng . ri nd . a r n hi 1 1 t . ( 21 a 1 .lwildic sM r Gr s si ve nti mor deaibel DE 0 t 0) l s us . osman' nvol me n e t l ow. 1 The D e l rD e e 9 a e f ndan s w o d r c ve hal oft prce s ea , i e es on l nst tt y ne r t ul e ei f he i pr d nt r t oa ha he ve di bur e and s r c f e H un e W i e w oul r ce ve t f lc m i son cha ge a s s d, e vi e e s. t r s d e i he ul om s i r d, percent oft r ai cust er t s deposi,asw el as t rem ai ng prce s ead,i er t age he et l om s' ir t t l he ni i pr nt es , a sr ief s nd e v c ee . 1 3 ci n s2 m one t do s . The a ee nt Hunt rW ie e e e i o w ih t Suppler a t i le t '0 y o o gr me s e s nt r d nt t he i s nd he r r m e e ai made i cea t tHunt r W ie di no i f d o t m eal i t e m a gi e s nttves t l r ha e s d t n a wn he t s n hes r n ta ng a c s Dei r oft me a son t r t i c t e s be l, t rde e r orno , r di c ount . lve y he t l he e al usom r ' haf whe he f red t di no oc r Se Fic Tesi o Fe 28, 4. d t cu . e t h tm ny, b. 201 Hun e W ie c am s t t i owne t me al i t Supple s pos e son, but i t r s l i ha t d he t s n he ir ' s s i ,n a t ai , h e i e c s o ta Hu trW ieo e a itrs i measa dwa s be tt a cu lt t e v d n e h ws h t ne s wn d n n ee t n tl n s u j c o y magn c l, u tl isrti c so r. r M at a dM r J g rtidt e mpaeismagn r i alj s i t eal u t me s M . ri n . a e re o o r t r i ke n ta ng ac i t t a morg .Howe ,wih a morg a i vi r di tviy o tage ver t tage n ndi dualr cevesowne s p a e i rhi nd a ualde i r oc s A ba may f ec os on a hom e onl i t i vi ct lve y cur . nk or l e y f he ndi dualsops payi . t ng H e e t a f r of o ner hi a ac ualde i r oft m e al ne r oc ur ed.I H unt r W i e' r , r ns e w s p nd t lve y he t s ve c r f e s s a ount f lbeow a c ran e t l ve ,Hunt rW iewoul ha t i s m or m one orrs cc s el l e ti quiy e l e s d ve o nve t e y ik l i i a l The e wasno ta f rofowne s p t t downsr n ci nt . Pa rc ima i osng t l. r r ns e r hi o he te m le s pe onfr tons wihouttue owne s p,a t rs ofl i t ri t nt i ma gi c l occ r d, m a t r r hi nd he ik osng hei nvesme s f r n als ure de t ta a tonsHunt rW ieofe ed e iey dif r ntfom morga s. he r ns c i e s f r ntr l fe e r t ge The D ec i e Pat ons - The R e ai Cus om e s ev d r t l t r I s e s t t pa r of La V ega ca i w o d f r be t r t n t r t i cus om e s t e m ha t ons s s snos ul a e te ha he e a l t r who w e e c ught up i H unt r W i e' s he e.W hie H un e W i e w a ce e a i is ga ns r a n e s s c m l tr s s l br tng t i , ove 90% oft r t i cusome si t s he e l tm one bewe J y 1 , 2011 a Feb ua y r he e al t r n he c m os y t en ul 6 nd r r 25, 2013. 21 Hunt r W i e,Ll yds a t D e l r D e e nt ne t r pur has pr i m e a s o e s o , nd he a e f nda s ihe c ed ec ous t l n t r t lc t e s beha f dibur e l n f he eai usom r ' l, s s d oa unds t tna e t po ton oft pur ha e prc o i nc he ri he c s i e 2 M r St Fic yDie t ofDeaerTr i ng a Hunt rW ie, a e t thewoul consde t 0 . eve th r c or l a ni t e s gr ed ha d i r he r t i c t r t be ç e al usome s o ç downsr a cle s' Ht e W ie. e Fic Tesi te m int 'of mtr s Se th tmony, Fe 27,201 b. 4. 2 A c or ng t isr c ds HuntrW iemadeove $1 m ilon fom J y 1 2011a Fe u r 1 c di o t e or , e s r 8 li r ul 6, nd br a y 25,201 t oug s e c r es i er s,a s r cef s 3 hr h pr ad ha g , nt e t nd e vi ee . 14 r mai ng,norde i r me a st t r t lc t r . Ye ,t r t lc t e spa d f esand e ni lve ed t l o he eai usome s t he eai usom r i e i er s on t m itken be if t t De enda s ha done a1 t s t ngs f t r t i nt e t he sa le hat he f nt d 1 he e hi or he e al c t m e s'be i . us o r neft Vitm soft s he e,Hunt W ie' downsr m cle s t tfed t l i t a ci he c m er s s tea int , esi o osng hous nds ofdola soft i lf s vi .Fore m pl Dag a M c r t tte dtrng he de ii t t lr he r ie a ngs xa e, m r Eloy esii d li r poston ha herUSCT de l r ç r Le e' i or d he t ts woul notbec r d a f e , asde fom a e , 1 . por ,' nf me r ha he M d ha ge ny e s i r an i ta 1 c r a t tt s l r s w as pur ha i w o d be s or d i a f iiy i he nii l 0% ha ge, nd ha he ive he c s ng ul t e n ac lt n r na e.M c r De a 9: 0-1 1 M s M cEloy i t d $28000. i sl r gol , and m Eloy po. t 1 0: . . r nvese , 00 n ive , d pa ldi .Alhough s ha a e s t he onlne a c la um t he d cc s o r i c ount M s M cEloy e a ne t t t . r xpl i d ha he , s a e e s w e e c u i a t ti w a ea i r t s k w ih he br t t m nt r onf s ng nd ha t s s e o pea t r okera boutt s a us ofhe he t t r m e as. e rdi he br ke i or he a uthe l s .M s M c r c ked he a o ti t l N ve d r o r nf m r bo r os es . Eloy hec r cc un n Fe u r 201 a s t si d t bei da ol ey foor d' t t s wa c r d ove br a y 2, nd he e tfe o ng çbs ut l l e ' ha he s ha ge r $1 000. i co mison f esa ove $900 i i e c t 1 a 27: 25.Afe de a ng t t 5, 00 n m s i e nd r n nt r s . d. t 22tr m ndi ha he a coun be cl e M s.M cEloy r e ve a c ck f onl $3, 87,w hi h am ount d t r c t os d, r e ei d he or y 457 c e o . $ 5 1 i l ss 24,42. 3 n os e . Anot rvi tm,J l W i ry,sa e hi dim a a t m a t ofhi l s a hi he c i om mbe l tt d s s y t he gniude s os es nd s fusr ton wih Newbrdge. I a c tfe l t a es e t t ç wbrdge Alince r ta i t i n erii d eter ddr s d o he i Ne i la Book e ng Dept'and da e Fe a y 23, 2, r W i ry wr e: ke pi o ' t d bnzr 201 M . mbe l ot Ap a e ty te p icp l (il o lv r g wee n v r ma ce r t me I p r nl , h rn ias sc f e ea e r e e de la o . i se t nt -ei t anddolas Att end,Is ul ha be n i c r nve td we ygl ght hous lr. he ho d ve e n ontol ofelve hundr d ffy ounc ofsl rvaued a $ 40 perounc Tha e s e n e it es ive l t 33. e. t qual t rygl ih t u a df u h n rdtndolr . hit -eg tho s n o r u d e e l s a Now whe Icos outmyac ount youar s ndi meaha wrte (i c k n le c , e e ng nd itn scj hec f eght t a f hundr elve dola s a sxt -fve c nt.1 a or i hous nd our ed e n lr nd i ygli e s m rt i t s c c lha no itnton ofc hi t s ( a ot r c c eum ng hi he k. ve ne i as ng hi or ny he he k) wihouta wrte deaied e a ton ofwhe e ni t e t a fve hundr d t itn, t l xplna i r ne e n hous nd i e eg t -eg t ol r a dtitlli ec nso mymo e we t ihyglih d l s n hry -fv e t f a n y n. 15 Letrfo W i ry t Ne rd e ( e 23 20 2 ( te r m mbel o wb ig F b. , 1 ) CFTC Ex 3 ) Mr W i e l,a . 6 . . mb ry n uns s i a e i t w ho r ei s Soc a Se urt che ks a a VA pe i ophi tc t d nves or ec ve i l c iy c nd ns on, de nde on Ne i pe d wbrdge de e Clfo d Che k t die t hi t r s es f alr if r e o r c m owa d ucc s ul i t e s Se W i be l Te tm ony,Fe 26,201 W hie t r w e e rs i i s i nvesm nt . e m ry s i b. 4. l he e r i ks n nve tng i sl r M r Che k c nce hi t sl rwa unde v ue a woul onl go up. n ive , . e onvi d m hat ive s r al d nd d y M r W i ry bele . mbe l ived he woul be m a ng m o y by buyi met s t ough d ki ne ng al hr N e brdg a M r Che k pr i e U nf r una e y,t tw a nott c e w i e, s . e om s d. o t t l ha s he as . M r Fic t sii d t ti wo d betodd' f a deae t diappe r s e Fic Tesi . th e tfe ha t ul û ' or lr o s a , e t h tmony, Fe 28,201 ye t ti e ty w ha ha ne w he s m e of t vi tm s s b. 4, t ha s xac l t ppe d n o he c i ought e a tons xpl na i a boutt rl s s a t r t n oft rmone fom dea e s W ila M ezge ,a r tr e oft hei os e nd he e ur hei y r l r . lim t r e ie he r l e t t bus nes , t tfed t r ce vi a ç ii n Re oncii ton' s a e ent f om t ea s a e i s es ii o e i ng û to pos c la i ' t t m r he Delwae De ior Se vc Compa (S a r post y r ie ny t DDSC' datd Se e r 1 201l t t sae ' e ptmbe 4, ) ha ttd, çluntrW ieSe vce ,LLC' (ijr or r lc t ta of9/4/ 1yo c r ntpostont) û- e s r i s l S sc ec ds efe t ha s 1 201 ur ure ii s w ih C. . Hopki M e a s D i s on a e' a pur s of t ry ounc s of gol CFTC Ex.44. t D ns t l vi i r ' cha e hit e d. Bas on i or ai Hu e W ie pr ded,M r M e zg wast çbe i i lowne of'gol ed nf m ton nt r s ovi . t er he s netc a r d. f #. Ye M r M e z r ne r r c ve t gol or s l he s t . t ge ve e ei d he d iver uppos y o ned.I Dec m be of edl w n e r 2 2, e Mr M ez e a k dBlc so ed ae M u arm M a o dt d lv rhi meas Mr 01 wh n . tg r s e a k t n e lr k ra wj o o eie s tl, . M a o d tle hm o t o t a rq e t e e t o g Mr Mez e h d ara y ls wj o ak d i u f h t e u s, v n h u h . tg r a le d o t a oxi el $7, of t $20, he ha i t M r M ezge wa convi d by M r ppr mat y 000 he 000 d nvesed. . t r s nce . M a o d t a t eewa mo e t bema ei t e eta s ci n ,a d g v Mr Ma o d sxy wj o h t h r s n y o d n h s r n a to s n a e . wj o it m or da t t n t i t e ar md. e ys o ur he nvesm nt ol 16 Attee o tesx yd y , r M a o dwa no e et b f u d M r M ez e c l d h nd f h it a s M . wj o s wh r o e o n . . tg r al e and l thi m es a ,buthe di notr t n M r M e zg r sca l .Af e a f w ee ,M r M e z r ef m s ges d e ur . t e ' ls t r ew ks . t ge lane M r M a o d' voc malo wa f la dh n v rs o et M r Ma o da an. i e r d . wj o s ie i x s ul n e e e p k o . wj o g i W t b h no me a si hi na t ls sa e nther e ve lse hi balncea $7. 66,c i r bl t l n s me, he a t tt me ec i d it d s a t 975. onsde a y ls t n t $20, he ha i se M ez r Bl ksone Ac e s ha he 000 d nvetd. tge ac t countSttme (a 2013 ae nt J n. ) ( CFTC Ex. a 9)2 41 t .2 Hu e W ie pr de t t s f t De e De e nt t m ir pr s ntt t of nt r s ovi d he ool or he alr f nda s o s e e e he ype ta a ton i t whi h t r t i cusome s we e e e i Fr tani m a s s rpt ,a r ns c i n o c he e al t r r ntrng. om r i ng nual, c i s nd tl her hal, vi 2 t doc e t c i ng t e se e ofme a son t i be f Hunt rW iec r l d deos3 o um n s onfnni he xit nc e s ontole e r a pe t of t downsr a c i nt de p i n,ye i di not di c os is i ve entt t ve y s c he t e m le ce t o tt d s l e t nvol m o he c t e s Furhennor i us t r t lc t e s f usom r . t e, t ed he e ai us om r ' undst pur has m a gi tadi a ount o c e r n r ng cc s t di notgua a eet exitnceoft c hat d r nt he se he omm odiis Hu e W ie kne t ewe e no m eal te . ntr s w her r ts i ispos e son,kne no l nsexitd t n t s si w oa se hough i cha ge i e e t and kne t r wasno acual t r d ntr s, w he e t de i r oft me a s wihi t t nt ei da pe i l o de t m a a bi r pr i, lve y he t l t n he we y- ght y rod. n r r o ke gge oft HuntrW iewilngl de r uded isc t e s e s li y fa t usom r . D.Dodd- ank War ngsfr Huntrl H ' Couns l Fr ni om e #' x e A s D odd- a nea e i pl m ent ton, Hunt r W i e s Fr nk rd m e ai e s ought w a of c i ng t ys ontnui o de r ud r t i c t e s e n t ug H unt r W i e' il ga oper tons w oul s be undert f a e a l usom r ve ho h e s s le l ai d oon he CFTC' j rs cin. ne W ieh rd s v r lat r e t a v s i o i s h mea d o t e S u idito Hu tr s ie e ea to n ys o d ie t n t c e n n h s 2 T hr e a tona r t lcusome s Pa r c a M e c do,And ew Bur ,a Rober Ba a 2 e ddii l eai t r , ti i r al r k nd t um n t tfed durng t ti l TheCour r e d t de ii t tm oni oft r t lcusome s esii i he ra . t eviwe he poston esi es he eai t r t w e e de i t d by t Pari s a w el. hat r s gna e he te s l 2 M r M a oodtsiid,ç he 1frtc mei ot sbusnes a Ll Ase Mana me , 3 . wj etfe l n is a nt hi i s t oyds st W ge nt t y i r e met as resofvi ost tHunt rW ie ha a i br down exa ty how he ntoduc d o ei de ha e s d, nd t oke cl t tna e pr uc wor s,wheeaclen ha t putac ti downpayme .' a ood he i nc d od t kg) r i t s o eran nt'M wj De ,( 1 - a 49: 24) po. DE 91 1 t 18- . 17 i plc tonsofDodd- n Durng t r e tpe i Hunt rW ie' f mercouns i l d m iai Fr nk. i he elvan rod, e s s or el ncude J hn Gi v n o eCt o n n n ' f r ry o Gr e b r Tr u i Ti ty Ca e (t ry' o o o a n n Gi v n o e' omel f e n eg a rg; moh r y û e ' f ) Ca ) W i t a St a n, and f m e l of Dewe & Le uf a J y Br ce G r s a ns on nd r w or ry y Boe ; nd a u os m n (ç osma ' ofJ. Gr s n PA ort f me fnn Gr s n Grenbeg.Prort a a t û s n' Gr ) B. osma he or r i os ma e r i o nd fer Dodd- a be me e f tve Hunt W ie sc Fr nk ca feci , er s ' ouns le ane t M r J era M r M a tn t e xpl i d o . ag nd . ri he s r ous l ga i s a s a e w ih Hunt r W i e' oper to .W hie M r G i ei e l s ues s oci t d t e s s a i ns l . ovnnnone was m or e a ma a dn nt boutH unt r W i e M r J r and M r M a tn' ci la c i i labiiy,M r Ca e e s , . age , . r i s vi nd rm nal i lt . r y, a eve M r Gr s a i c t d t tHunt rW iedoc e sand a to woul vi ae Doddnd n . os m n, ndia e ha e s um nt c i ns d ol t Fr nk. a ( )M r Gi annone' Dodd- ankWar n 1 . ov s Fr nigs A s t J y 1 2011 da e f Dodd- a t be m e ef e tve a oac d,M r M a tn he ul 6, t or Fr nk o co f c i ppr he . ri and M r J ge r c ved s r w a ni f o M r G i nno r r ng D odd- ank' i pac . a r e ei tong r ngs r m . ova ne ega di Fr s m t o H unt r W i e.For e m pl ,on J 24,2011 M r J m Gi r one s nt a e m ai t M r n e s xa e une , . ol ova m e n - lo . M a tn a M r J ge wih cl a a c s r c m e tonsr r ng t i s hem e: r i nd . a r t e r nd onci e e om nda i ega di he r c Hunt rW ie s d sop a ce i ne pur has or r on orbe or c os of e s houl t c ptng w c e de s f e l e busne son ( i y, J y 1 2011.lt nk t oddsaeagans HuntrW ie i s Frda j ul 5, hi he r it e s be ng a e t s es f l de e a CFTC e or m e a i n a t c ng is i bl o ucc s uly f nd nf ce nt cto ta ki t cure meho ofdoi busnes t rSe tons4()a 4( oft CE Ac. rnt t d ng i s mde ci a nd b) he t 2. You s d cons de s oppi ac e a e of ne pur has or r now a houl i r t ng c pt nc w c e de s nd gi ng yotr c t s notc t tt y wilha t t (i lqui t t i vi t usomer ie ha he l ve o o scl i dae her exi tng pos to bef e J y 1 or you wil lqui t t r postons on t t si ii ns or ul 5 l i da e hei ii ha da e. si t s f a m os c e va i a oac t Thi s he a e nd t ons r tve ppr h. 3. I t a t r tve,you m a wi h t pe t your c t e s t m a nt i t r n he le na i y s o nni usom r o i a n hei c r ntpostons untlt c ur e ii i hey hoos t lqui t t m .H oweve ,lca e o i da e he r nnota t s t hi tme pr di twhe he t CFTC wilc i rt ta br c oft CE Ac or i e c t r he l onsde ha ea h he t not . l Ed w a i f c s c s u i ge tng St nda d B al t a e t pr de you f s n a t uc es f l n ti a r lk o gr e o ovi wih t fna i you r quie t e f ts tt e delver wihi 28 daysof t he i ncng e r o fec ubsiut d i y t n sal w e s d r t gett puti o pl bef e Jul 18.Even t e, houl ush o hat nt ace or y hen,t here i silt q si n ofwhehe t CFTC woul pe m i you t mait n your s tl he ue to t r he d r t o n ai cure c t e postons a trJ y 15 be us t y wilno ha f a ur d r nt usom r ii fe ul ca e he l t ve e t e delver wihi t r quie 28 days i y t n he e r d . E- i fo Giv l ne t J g r a d M a t (u e 2 , 2 1 ( TC Ex. 1 7 a 3 .Mr mal r m o amo o a e n ri J n 4 01 ) CF n 8 t) . Gi r ovamone' a yssi ude hi beleft t s nal i ncl d s i ha : ( heCFTC plnst brngas resofe oreme a tonsase l a ( onda l T) a o i ei nf c nt ci ary s M y, J y 18 a i te r c ul gans ve y ompa i t pr c ousm e a si ty whih c i ny n he e i t l ndusr c ontnuest o ofe pr ci m eal f s l on am a gi orfna e ba i o t tdae unls f r e ous t s or ae r ned i nc d ss n ha t es delver i made a l s on a s tt ed ba i t a de ior whih is t i y s , t ea t ubsiut ss o post y c s ues he e va e of an non- ota e wa e qui l nt neg ibl r hous r ept t t uli t c t e , e ec i o he tma e usom r wihi 28da oft s l t n ys he ae. 1 a 2.Thus M r Gi nnone r ie t r d t g r ga di t i d. t , . ova a s d he e la e r ng he mpac Dodd- a t Fr nk woul ha o Hunt rW ie. d ve n e s Unde t Dodd- a a ndm e st t Act Hunt W ie r he Fr nk me nt o he , er s woul bebr ug unde t CFTC' j idi i a woul rs a s tbr d o ht r he S urs cton nd d ik ui oughtby t he CFTC . unt r W i e w as no a t ly de i rng m e al t r t lc t e s a i w asnot H e s t c ua l lve i t s o e ai us om r nd t pr di non- ta e war hous r c i s t r t l c t ovi ng nego ibl e e e ept o eai usomer wihi t nt e g s t n we y- i ht da ,a Dodd- a r r d.M r Gi l ys s Fr nk equie . ovamone' r commenda i we e une voc : se tons r qui al Hunt r W i e had t s dow n orc nge is ope a i by J y 1 2011 i notbe or i e s o hut ha t r tons ul 5, ,f f e, n or rt a d la lt de o voi i biiy. Alho h M r Gi nnone' r omm e tons we e una guous M r M ari s nt a t ug . ova s ec nda i r mbi , . tn e n e- a lt ts m i ha nme day as ng,çA. lco r c t tJ hn i es e ily s ki ç m r e t ha o s s nta l ugge tng t twe c os t si ha l e he compa ' #.a l.M r J ge ' r s e co ime he a M r M a tn unde sood Hunt rW ie ny?'f t . a r s e pons nfr d nd . ri rt e s c ouns ls l al a c by sai t-ha , i my o ni as t pur yor of t wort c e e ' eg dvi e t tngs û- t n l pi on, he ve he s as s na i was es e i l hi opi on. I M r M a tn a M r J ge unde sood M r ce ro, s ntaly s ni ' d. . ri nd ' . a r rt . Gi nno ' sae st tt Dodd- a e oreme a hort j opadi d HuntrW ie' ova nes ttment ha he Frnk nf c nt ut iy e r ze e ss busnes a tvii . n f t t y r c nied t y coul no l rc i t i s he e. i s c i tes l ac , he e og z he d onge ontnue her c m 1 9 Ye ,when M r Gi l t . ovamone s ta e mai t M r M a tn a M r J gera en n - l o . ri nd . a boutt e we ks hr e e lt r s eki t d t r ne whe he t y ha i plm e e a of hi r c me to ,he a e e ng o e e mi t r he d m e nt d ny s e om ndai ns la d t tv r lte h d c n e S e E- i fo Giv n o e t M a t (uy 1 2 11 e me ha e y i l a ha g d. e mal r m o a n n o ri J l 2, 0 ) t n ( CFTC Ex.1 a 5 .On J y 1 2011 a opposd t he di M r Gi mone' wa nngs Mr 69 t ) ul 2, , s e o e ng . oval s ri , . M a tn saed t the a M r J rwoul r us t cos down t c ri t t ha nd . age d ef e o l e he ompany i t y wer unabl f he e e t r c a de lwih a Unie Stt de io y t r eve acualdei r o me a swihi t o ea h a t t d aes post r o ec i t lvey f t l t n he t t e ghtda pe i pur ua t Dodd- a I r pons t M r M m i ssaeme t tt y wen y- i y rod s nt o Fr nk. n es e o . n' t t nt ha he we ewilng t vi a et l i ta ofs tng Hun e W ie down,M r Gi nnonewase n r li o olt he aw nse d huti tr s . ovn ve m or ada nta e ma bouthi a yss dl yo c nnotbes et tyo c n ge dei r i plcewihi s nal i: tf u a ur ha u a t lve y n a t n t 28 day pe i ie,by Aug t1 you s ul s down untlyou ar .You c d pe s l he rod, .. us 5, ho d hut i e oul r onaly be g ly ofa f l ' 1 uit e onyl' d. Tha s t ame day, afe r e ng M r Gi tr eviwi . ovnnnone' wa i about t po e i f s m ngs he t ntal or c i i cha ge bei br rm nal r s ng oughtag ns t m f t rac i ,M r J ge s nta e- i t M r ai t he or hei tons . a r e n ma l o . M a tn s a i t ton Frda J y,1 2011 ç e d i i we s tdow n t e ie com pa or ri t tng ha i y, ul 5, , l ec de f w hu he ntr ny, a J h k o n ne sy g)û rs i@)'E- i fo J g rt M a t (u y 1 , 01 )( TC s o n Giva no ) a s, we ik t.'' mal r m a e o ri J 1 2 2 1 CF n Ex.18 a 1 .Mr J erwa ke nl a r oft c c sa ia et t m a t cons nce 9 t ) . ag s e y wae he hoie valbl o he nd he eque s of c i ng t o r t Per ps e ontnui o pe a e. ha ven m o e a a e of t c e nc s w as M r M ari w ho r w r he ons que e . tn, wr t i a e mal oMr J g r l t a yl kwewil a ea j ii c ls'1 oe n n - it . a e ,l h n uc Wi lh v d onng el. d. ' ( M r Cary andMr Gr s man'Advc 2) . e . o s s ie M r Gi nnone wa not a one i a sng M r J ge a M r M a tn a t Hunt r . ova s l n dvii . a r nd . ri bou e W i e' l gali s s M r Ca e a M r Gr s a s di c s ons w ih M r J e a M r M a tn s se s ue . . r y nd . os m n' s us i t . ag r nd . r i a s pr vi d am pl r as w hy Hunt r W i e' ope a i a busne s pl n w oul be il ga l o o de e e ons e s s r tons nd i s a d le l onceDodd- ank c m ei o e f c . Fr a nt fe t 20 For e m pl M r Ca ey t s ii d t tt r t begim i ofhi r e e a i w hi xa e, . r e tte ha owa ds he r ng s epr s nt ton, ch bega i M a 2011,he i or e M r M ari a M r J ge t tHunt rW ie' a ee n n y nf m d . tn nd . a r ha e s s gr ment wih s t t de l r we e to e ome a i nsse wih Hunt r W ie' a t lpr c ies Se Car y he a e s r r ubls nd nco it nt t e s s cua a tc . e e Depo. a 1 t 70: 1 1 The a e m e s whi h i l d t ta ng ag ee e s t l n 4- 7. gr e nt , c nc ude he r di r m nt, he oa a ee nt ,a a i sr tve s r i ag e nt ,di notde c i a cur t y t wa Hunt gr me s nd dm nitai e vce r eme s d s rbe c ael he y er W ieta a t d isbusne s butHunt rW i ene rhe e sco i d t us t m a s r t m s r ns c e t i s, e s ve t l s ntnue o e he nd ha e he w ih t de l r , ho, n t n,pr de t m t t r t i c t e s. d. t 1 24. t he a e s w i ur ovi d he o he e a l usom r 1 a 8- M r Ca ey ad s d M r M a tn t t he di no unde sa why M r M a tn bei ved . r vie . ri ha d t rt nd . ri le Hunt rW ie had sor d me a swih e h oft Supple s i ve wha s e e s t e t l t ac he ir l n gi t e med t be t boo o he k e r oblgai asoppos t s t ng E c dhol i ( s ha '1 a 1 11- 7.l a nty i tons ed o omehi hej oul d n hil nd. d. t 42: 1 n n ' e- a lt M r J ge , Augus 3,2011 M r Ca e a s hi a m i o . a r on t , . r y dvied m boutadic son M r Ca e ha s us i . ry d had wih Mr M a tn a not t tçg ti t not fom t ( ples fom whom ( . t . ri nd ed ha ûetng he es r he Sup ir) r Mr J g r p r h s llta t ee g s mea b hid t ers ls'wo l c n i t a t e a t ly a el u c a ed h t h r wa ) tl e n h i ae ' ud o fnn h t h y cual ha m ea sor d f HuntrW ie' r t i c t r . d t l t e or e s s e al usome s l t d ofobt ni ç e ' a M r Ca e a s d,M r M a tn a M r J ge ha DDSC nsea ai ng l s' s . r y dvie not . ri nd . a r d is e P iin Re o cl to fr t rti c tmes ta o y t o fr e ) . .t tt e su osto c n ii in o ms o eal uso r h t nl l n imld . ha h a c p o u e sgd a d ta o t b o s o y u Co ltrlM a a e ,Hu tr W ie S r ie , r d ds xite l n h t n he o k f o r laea n g r ne s e vc s LLC,yourcint (ili i ntfe a t be iilowne oft tcolatr .'Tr s rNotce , le , sc s de iid s he nefca r ha l eal' an# is Hu e W ie Newse tr J y 20,2011 CFTC Ex. 11 The DDSC' Poston Re onciiton ntr s lte , ul , 8. S ii c la i f m stoubl M r Ca ey.He advied,ltwoul be a good i a t ti you'e g ng t c im or r ed . r s t i d de ha f r oi o onfr t ts e amountofphysc m e a o ur t ts e i doi m or t n wrtng t ton a ha om ial t l cc s ha om one s ng e ha ii ha pice ofpa ra ha s eba i on whih t ma t sa e e pe nd s om ss c o ke he t t ment' Ca ey De a 1 1 21. . r ' po. t 52:2M r Ca e que toned t Poston Rec ii ton notce' l nguage a M r.J r a M r . ry si he ii onc la i i s a nd age nd . 21 M a tn' de i i t ha DD SC i s t m i lg of t f c t t ne t r D D SC ,nor a r i s c s on o ve s ue he n i ht he a t ha ihe nyone el e f t tm a t ,ha ve ii d t e s e e oft m e al . s or ha ter d r fe he xit nc he t s H unt W i e' ot r co el M r Gr s a unde s ood t tH unt r W i e' s m e di er s s he uns , . os m n, rt ha e s s che d notr ul i HuntrW ie a t ly ha ng physca i nt y and he a s M r M a tn a M r es t n e s c ua l vi i l nve or dvied . ri nd . J gera s h;i wa hi beleft tt r wasûno me a att e oft r i a s uc t s s i ha he e t t l he nd he a nbow. Ta c l ' ped al ' bewee Gr s n a Ga no(u1 21 2011a 3: p. )( t n osma nd udi J y , t 24 m. CFTC Ex.225 .l J y2011 M r ) n ul , . G r s a s a ed t the had expl ne t M r M a tn t tt m e al di not e s ;H unt r W i e os m n t t ha ai d o . r i ha he t s d xi t e s mer l had ofs the ng. Id.4 ey f e dgi 2 I r ga ds t t Tr ns e of Com m odiy f m Hunt r W i e s nt out t t r t l n e r o he a f r t or e s e o he e ai c t m e s M r Gr s n e a ne t tt f m S a oute ty wha i be ng hel ho a uso r , . os ma xpli d ha he or t ys l xacl ts i d, w nd f whom.l nowhees yst tHW a a ofHW ' c t rde esi (houg t ma be or t r a ha nd ny s usome alr s t h hey y ) hol ng a phys c pr di ny i al oduc t i r quie t m e t oblga i t H W ' dea e c t e s or t hat s e r d o e i tons o s l r usom r uli t y t rti c tme . E- i fom Gr s n t M a tn (u1 24,2011 ( tmael he eal uso r' mal r ' osma o ri J y ) CFTC Ex. 2 ) M r Gr sma g so t a viehscin s 38 . . o s n oe n o d s i le t, glhee i a make difr e bewe expli ng how HuntrW ie ta st ' r s T r d feenc t en ani e s r de he de i tve a phys c lm a ke s t pr de a a s ed a lt t m e t a a al r va i nd ia r t o ovi n s ur biiy o e ny nd l 2 M r Gr s a sac i ns s 4 . os m n' to ugge thi r e w a m or aki t an a tve pa tei ti t f a s s ol s e no ci ri pan n he r ud r t rt n di i e e t d couns l Fore m pl asnot d pr vi l Syl a W ila st si d t t ahe ha sntr se e. xa e, e e ousy, vi li m e tfe ha M r Gr s a t d he Hunt W ie ç bs ut y'had me a sa t thewoul c s m t tf t . os m n ol r er s k ol el ' a t l nd ha d ontr ha ac t he c t o r usomer . s Howe r i ar or d t lpho c ve , n ec de ee ne onve s ton, t d Fr nk Gaudi t r r a i he ol a no he e ween meas Th n, tl med rn t ep ei n r ij n to h a igt t ne W ie r o tl. e he o d u i g h r l ay n u cin e rn ha Hu tr s mi pos e s d m e as Furhe s se t l. t nnor ,t oughoutt Elven h Cic to ala g e s whe t pane e hr he e t r ui r r um nt , n he l a ke M r Gr s an t expl n whe e i c d fnd e denc on t r cor t tH un e W i e s d . os m o ai r t oul i vi e he e d ha tr s pos es e m eal,hec i ly s hed postonsa r r i fom a we i die quesi . s sd t s ontnua l hi ii nd efaned r ns rng r ct tons l o s h i t nc J e St nl y M ar usa ke M r Gr s n,r i t e rhavei t i n ne uc nsa e, udg a e c s d . os ma ç d hey ve n her ho ltl ha , s s i ofasngl piceofme al' Or Ar um e a 8: Hunt rW ie t ite nds pos e son i e e t ?' al g nt t 09, e s, 201 W L 1 4 424435( 1hCi. 4) Mr Gr s a werdyes butwe ont cai onl t t 1 t r 201 . . osman ns e , nt o l m y ha Hunt rW iewo d pr de me a st alr t i c t e swho r ue td t m .I o he e s ul ovi t l o 1 e a l usom r eq se he n t r e ha xc nges he t d t El ve h Cic tt tt a e m e sbe w e n H unt rW i e a t , ol he e nt r ui ha he gr e nt t e e s nd he Suppler pur edl gave H unt W i e possess on,even w hen hehad pr ousl s at i s port y er s i evi y t ed ot r s Hi co uc i t sm a trm e iss r i byt Fl i Ba a r ult r aut iy. he wie. s nd t n hi te rt c utny he orda r nd eg a o y hort c t rta cli sno m at rwhe e apa tc a pr c ousa i ti lma ke usome r de am te r riulr e i nd ndusra r t m a te and,on t o he ha pr di a s a est yourc t e de e ' y r nd he t r nd ovi ng s ur nc o usom r alr s r t i ci nt t tyou a e hol ng i i l ive o y' whi h m a be tke t e al le s ha r di physca n nt r c y a n o mea s cfci nt y. n pe ii nve or 1 a 2.M o hsl t ,M r Gr s a a knowl d t tsa i Hunt rW ie ha me al sor d d. t nt aer . os m n c edge ha t tng e s d t s t e o isb h l wo l k l t(e a u tuh, e n t o g M r M a t s ug tt ma e s c a n t e af ud ç mos b ) n nr t ' ve h u h . ri o h o k u h a ' n decaai Ta d CalBewe Gr s n a Ga no ( lrton. pe l t en osma nd udi Nov.21,2011a 11: a. )( t 45 m. CFTC Ex.227 . ) . ovannone' wa ni ,a s r ngs s Uli t l M r M a tn a M r J ge c e t ino e M r Gi tma ey, . ri nd . a r hos o g r we lasM r Ca e a M r Gr s ns a c r r ng Dodd- a sr quieme sa Hunt r l . r y nd . os ma ' dvie ega di Fr nk' e r nt nd e W ie' mil a ng saemen s a de ep i omi sons Hunt rW ie c i d ope a i afe s s se di t t t nd c tve si . e s ontnue r tng tr J y 1 2011. ul 6, E. Pro Kno e geo heSc mesRe l tr I ia in ir wld ft he ' gu ao y mplc to s ()NotHi Fis Rodeo-Mr Mari ' Cons ntOr r 1 s rt . tns e de As M r Gi nnone waspr vi ng l ga a c t M r M a tn a M r J rr ga di . ovn o di e l dvi e o . ri nd . age e r ng t Dodd- a is st te se a Hunt rW ie M r M ari s m e t belevet thi t ryhe Fr nk s ue ha xit d t e s , . tn ee d o i ha s hit fveyea hit y i t pr i m eal i ty ma hi bet rs td t anayzeDodd- a s i r sor n he ecous t s ndusr de m te uie o l Fr nk' i plc tons.I r pons t M r Gi va m iai n es e o . o nnone' e- i a ki M r J ge and M r M a i whe he s ma l s ng . a r . rtn t r t y had i plm e e t r omm e tons he ha m a r ga di Hun e W ie' o r tons he m e nt d he ec nda i d de e r ng t r s s pe a i , M r M a tn sae ç e doi t ssnc 1 . ri t td, ç n ng hi i e 977.Thi i no my frtr de ' E- alfom M a tn Be ss t is o o.' m i r ri t Gi o ovannone(ul 13, J y 2011)( CFTC Ex.1 a 1 . 69 t ) l d,i wasnot M r M a tn wasan e cutve a Uni e whe due t t a tons of ndee t . . ri xe i t m t n, o he c i M r M atn and ot rrpr e ai ,t FedealTrde Commison (TTC' commenc d a . ri he e esnttves he r a si t ' ) e n a i i t Unie Stt s DititCour,Ce r lDititof Caior a agans Uni tCr di cton n he t d a e src t nta src lf ni, i t me e t Cor a i Uni e Tr di Com or ton, f i vi def nda s i l ng M r M a tn. por ton, m t a ng a i and our ndi dual e nt , nc udi . ri 23 Se Com pl, CFTC Ex. 1 ,FFC v.Uni Cr di Cor ,No.92e . 58 met e t p. 5759 ( Ca. Se .23, CD 1, pt 1 ) l Uni t M r M a tn a t ohe def nt si ae t t e r ofa Cons nt 992 . n me, . ri nd wo t r enda s tpultd o he nty e Or r Se Cons Or ras t De e nt E.Ke t Owens Ed M a tn,and Ed M ye s CFTC de . e ent de o f nda s ih , ri r, Ex.1 9, i tNo. 2 5 5 ( Ca.De . O 1 9 ) Th Co s n Or e e j i dMr M at 5 Unme, 9 - 7 9 CD l c 2 , 9 4 . e n e t d r none . ri , n fo û r v dn s bsa ta a ssa c t a yc mmo iisrtie wh m ( k o )i f ingt r m t o i ig u tn il s itn e o n o dte ealr o he n ws s al o p i d s ls a maeil a t i cu i g , b tn tlmie t , tetuea u to c mmiso sa d ico e ny tra f c, n ld n l) u o i td og h r mo n f o sin n ) f s' 1 a 6.The Co e Or rpe ne l r sr i d M r M a tn fom mir pr s ntng t ee .' d. t ns nt de nna nty e tane . ri r se e e i he l gr ofrs a s a e wih a i t e i c modii ;t lkelhood t ta c umer ' ee de ik s ocit d t n nvesm nt n om tes he i i ha ons w oul e r a pr i on a i s m en ; a t a ount of f s or any ot r m a era f c d an oft n nve t f' nd he m ee he t il a t o j ei ey maeilt a c ns me ' d cso t iveti a c mmo i o oh r iv sme t be tv l tra o o u rs e iin o n s n o dt r t e n e t n y ofe i 1 a 5. r M a tn r ceve a a e t a deby t Cons ntOr r whih de al d f rng. d. t M . ri e i d nd gr ed o bi he e de , c t ie wh two l c n t uefa da de pli dwh t ewa p r n n l e j ie fo d i . a u d o si t r u n x ane a h s ema e ty non d r m ong t He e,M r M ari a M r J ge de ope t H unt r W i e s m e t i ul t t r . tn nd . a r vel d he e s che o ns a e hem f om r r t l c t e s c am s M r M a tn a M r J r s emed t be ive t t i t y we e not eai usom r ' l i . . ri nd . age e o le ha f he r die ty s i tng ci nt,e n a t y we e c mitng fa t y c d notbe labl f t r r c l olcii le s ve s he r om ti r ud, he oul i e or hei l s s The i e os e . y nt nded t hi be nd acoak ofa o de hi l nonymiy ast y we epuli t srngs t he r lng he ti . ( )Re lt r Pr be ta I iae Hu trWie 2 gua oy o lms h t mpl td n e s c Asde fo M r M ari spe s i rm . tn' r onale re wih r gult r a xpe ince t e a o y gencesr gar ng faud i i e di r n pr i me a sta a tons M r M a tn and M r J ge we e ma a e oft is wih t ecous t l r ns c i , . ri .a r r de war he s ues t he Hunt rW ie s he tzough l uist diec l orby i iaton,r atd t Hunt rW ie' e s c me lr aws t hat r ty, mplc i el e o e s s a tonsi deae f a c i n lr r ud. 24 () a Aril Re r ngCo tce aadi mmodiisFrud Cas si Fl i te a e n orda Mr M at a dM r J g rweema ea r o t eCF Se p nd dj rs ito a e ry . ri n . a e r d wae f h TC' x a e u idcin s al n a M a c 2011 On M a c 23,2011 ChrsJ i a at ne f wa ded t M r M a tn a M r s rh . rh , i an, n tor y, or r o . ri nd . J era ari e t tdicus ed t ma vitm swho wer t ke adva age ofby uns r pul ag n tcl ha s s he ny c i e a n nt c u ous b o esa d d ae s J n Bu sen fi l Re lto ,Loso s Ca Le v God I v so s o r k r n e lr. o rti , t e gua in t fRik n a e l n e tr n t Sh y Gr ak ound,Sun Se i l M ac 1 2011 CFTC Ex.1 ( ri fe ,* iteRe aton' . ntne, rh 9, , 68 heena tr ç tl gul i ' L ) Alhough much oft a tcl f us d on t f d t tpr c ousm ea busne s a ta a to t he ri e oc e he a ha e i t l i s es nd r ns c i ns c ondude i Fl i ha g unr ult t a ho a s r a r oft pe ng f de al d n orda ve one eg aed, he ut r dvied e de s he ndi e r r ult r c nges as oc aed wih Dodd- ank.l e a el f l wi t dic son of t eg a o y ha s it t Fr mm dit y olo ng he s us i he c i na hit r oft i vi l who s i t r t lc t e si Hunt rW ie' s he e s e rmi l so y wo ndi dua s olcied e ai usom r n e s s c m ,e M a tn De Fe 26,201 t a tc e expl i d: ri po. b. 4, he ri l a ne M or f r ove sghtoft gol fr a a st beon t ho ion when a ne e ede al r i he d ims ppe r o he rz w 1 w t ke e f t i J y.Com pa es t t s l pr ci m et s i l ve a a a s f ec n ul ni ha e l e ous al n e r ged de s al wilha t de i rt gol wihi 28 da t t c t e ora l a i whe e l ve o lve he d t n ys o he usom r oc ton r t m ea sa e ea iy a e sbl s t buye c n ve iy t t acualy e s.I he tl r sl cc s i e o he r a rf hat hey t l xit f t gol in' physc ly delver d, t ta a ton wil f l unde CFTC he d s t ia l i e he r ns c i l al r j rs ito a d c mp ne a dt i b o r wil e dt b fd r l lc nsd t u idcin, n o a is n her rkes l n e o e e eal ie e o y w or i c m odii s k n om te . fite Re aton,a 5.M r M a tn a M r J ge r c i d t s e a to of Dodd- a s tl gul i t . ri nd . a r e e ve hi xplnai n Fr nk' i plc tons m or t n f m on hsbe or is i pl e a i m ia i e ha our t f e t m em nt ton. ( b) Fedea TrdeCo si sAci Ac ns 2020 rl a mmison' ton ai t / l Aprl 2011 t CFTC fl a a ton a ns 20/ Tr di Co pa l ,20/ n i , he ied n c i gai t 20 a ng m ny, nc. 20 Pr co M eas l ,a isofi r ( l vey,t 20' i t Unie SttsDititCo t e ius tl, nc. nd t tces coledi l 1 20/ ' n he td ae src ur ) f t Ce r lDiti ofCalf ni .See 20 20 Compl CFTC Ex.1 2,CFFC v 20 20,No.11 or he nta srd ior a / . 8 . / - 000643 ( Cal Apr 26,2011.The Co ai alge t tfom J nuay 2006 t oug t CD . . ) mpl nt le d ha r a r hr h he flng of t ac i n, i Apr l of 2011 20 20 i d c t d a defa d c t e s a ii he to n i , / û ha hea e nd r ude us om r nd pr pe tve c t os c i usomer by l ng a s yi bout t lkei he i lhood of pr ii a c e i t ne oftng, nd onc alng he ar c rany ofs tnta l s ,whe i si wih' 20/ 1 at2 ! 1 The 2020 Compli e tit ubsa il oses n nvetng t ' 20. d. . / ant s htt hol 20 20 la ef de r udi r t lcusome soutofa l a t$ m ilon i l s . oug o d / ibl or fa ng eai t r t e s 4 li n os es M r Gi nnone me i d t 20 20 Co pl nt i a e- lt M r M a tn a M r . ova ntone he / m ai n n mai o . ri nd . J r on M ay 3,2011 cl i i t t i was ti pe a i ' t t t s k w ih hi .Se E- a l age , a m ng ha t çm r tve ' ha hey pea t m e m i fom Giva r o nnonet M a tn a J ge ( a 3,2011 ( o ri nd a r M y ) CFTC 1 2 a 1 .On Ma 1 2011 he 8 t) y 3, , f m a de t 20 20 Co pli t M r M a tn a M r J ge a d r c e t t t y r a o r d he / m a nt o . ri nd . a r nd ie t d ha he e d par gr phs 56 a 60 of t Co pl n i pm i a .Pa ag a 5 r ads i pe tne pa t a a nd he m ait n culr r r ph 6 e , n ri nt r , ç he a c t ç n usomers nds 20/ M e a s f W e 20 t l unds t pur ha e physea m e a s 20/ M e al wies o c s i l t l, 20 t s r t ef t at r pa t ( e W ie, a us t m t e e i o lveage ta a tonsi hos unds o hid ry, Huntr s ) nd es he o ntr nt e r d rns ci n t na of20/ M eas'2020Compl,CFTC Ex.1 a 21!56. rgr ph60sae , he me 20 tl. / ' . 82 t Paa a tts Addii ly,20 20 M e a s m ir pr s nt how c t e f tona l / tl se e e s usom r unds a e beng us d. r i e Spe ii ly,20 20 M eal mir pr e s t t i pur s s physc me al,t t c fcal / t s se es nt ha t cha e ial t s ha tteha pa s t t c t e ,a t t me a i sor d i as c ede io y. il s s ed o he usom r nd hat he t l s t e n e ur post r Sic 202 M easo l h sa a c u twi ( mtrW ie i wh c i e tr it n e / 0 tl ny a n c o n t Ht e s ) n ih t ne s no h lve a d ta aci i is own na e not t na e of t c t e , t e r ge r ns tons n t m , he m he usom r he cus om er has no r ght t a m e a s a tte t a m e al t t m i be t i o ny t l nd il o ny t s ha ght pur ha e doesnotpa st t c t e . c sd s o he us om r' ' f a 22!60. #. t M r Ca e t tfe t t Hunt r W ie i taly r t i d hi a hi f r r lw fr , . r y esiid ha e s nii l e a ne m nd s o me a im De y & LeBoeuf i M a of2011 be us oft 20 20 aci Se Ca e De ,a 1 7- 2. we ,n y ca e he / ton. e r y po. t 9: 1 Hun e W ie' c e nsr r ng t i ia i oft Jp lp aci s med t i r a e e n t r s s onc r ega di he mplc tons he / ton ee o nc e s ve f t rafe t c ta nt d Re ei ri t 2020 m at rfl aRe twih t ti c t urhe tr he our- ppoi e c ve n he / te ied por t he ral our. The Re tsa e t ta tri si tng a i e ve ng r l va i i dual,hew a no ta e por t t d ha fe nve tga i nd nt r iwi e e nt nd vi s s t çbl t obti a e net e de e t veiy t e senc ownes pgla s fke pi oft o an nd xami he vi nc o rf he xit e, rhi , nd ae e ng he pr c ous m e a spur ha e a hel i t c t er s a count .' #.a 27: 22;s e al o E- a l ei tl c s d nd d n he us om ' c s' f t 18e s m i 26 fo Ma t t Ca e ( a 23 2 1 ( r m ri o r y M y , 01 ) CFTC Ex.1 3 a 1 (ç h Re ev r alrtr ewe ks n 8 t ) tT) e c ie , fe h e e ( oftyi hasbee una et fnde de et tpr r ng, n bl o i vi nc ha oducte ss' . xit.) ' Upon la ni oft Re i r s fndi ,M r J r s a e mai t M r M a tn,M r e r ng he ceve ' i ngs . age ent n - l o . ri . Ca e a M r Gr s r y, nd . os man r l yi hi conc r f Hun e W ie sf lr .M r J rwr e,û-hi e a ng s e n or t r s ' utze . age ot t- s l i ralyc us ngne l)whihi a rngonma l l. twoul s e t i c t t tt s e l r hi ws, c s ngei ny eves Tha d e m o ndiae ha he n x s o t d o i wi El n e W ie i te i d e d b l vete ei n p o u t'd. e t h e o r p s t lu tr s ,t h y n e d o ei h r s o r d c . 1 h l e ' () c F o iaOfieo F n n il g lto sAci na an tM ia l rd fc f i a ca Re uain' to a i s d s A mon h a trt FTC fl t 20 20 Compli ,i lt J 20l1, heFl i Ofi eof t fe he ied he / ant n a e une t orda fc Fi nca Re ai (C na il gulton CFOFR' rquese doc nt fom HuntrW iei rlto t iscrmi l ' e td ume s r I e s n eain o t i na i s i ton ofM i s A s e M ana m e ,a he Hunt W i e de e .M r G r s a expl i d nve tga i da st ge nt not r er s al r . os m n a ne t taFOFR r pr s nt tve çM s Gr ha e e e ai , û . omni ki' a ke çW he e i t de ior f ciiy whe e t c , s d, i r s he post y a lt ' r he p e i u mea i so e 'E- i fo Gr sma t Ma t (uy 5 2 1 ( rco s tl s trd. mal r m o s n o ri J l , 01 ) CFTC Ex. 3 a 1 . ' n 24 t ) Ac r ng t M r Gr s co di o . os man, M s Gr . omni ha pos d t t i cki d e ha mporant quesi t hi on t ton o m num e ousocc sons M r M a tn r ponded t M r Gr s a se- a lt ts m e da m ii û1 r a i . . ri es o . os m n' m i ha a y, tng, t bei ve our r s e t t quesi ofwhe e t m ea i sor d nee t be c e uly t ht le e pons o he ton r he tl s t e ds o ar f l houg out' I .' d Jl Beti t H ou tng he se M r M a tn a M r J ge br d a to ng t c i con r lng t pr e s a . ri nd . a r agge bou wni he asno, toli he oc s , nd t a lt t C he biiy o ç make m one no ma tr whe e t m a ke s s f. E- a lfom J ge t Pa y te r he r t hit' m i r ' a r o ndor a Pa (une 1 2008)( ng J , CFTC Ex.1 a 1.The rc ve l alad c a war ngsr r ng 80 t ) y e ei d eg vie nd ni egadi Hunt rW ie' Dodd- a vi l tonsa fa e tc e s s Fr nk o ai nd r udul n onduc .Ye ,t y pum os f l decde t t t he e uly i d o rs crm i l a c vi la lt by co i ng H unt r W ie' f a i k i na nd i l i biiy ntnui e s s r udul nt a il al ope a i e nd leg r tons. 27 Appr ma ey 3, r t i c t e s l tove $5 milon be aus ofHuntr W ie' s heme. oxi t l 200 e al usom r os r 2 li c e e s sc The hous c l otwi whe i vi a i oft l w , he ga e i r gge e am n n, n ol ton he a t m s i d. I. l STATUTO RY BACK GROUND Se to 7 2 o te Do d F a Ac e p n e t s o o te CFTC' j rs ito t cin 4 f h d - rnk t x a d d he c pe f h S u id ci n o i ude fnanc d c ncl i e omm odiy tans tonswih c ume s t r by gr ntng t CFTC t powe t r aci t ons r , he e a i he he r a aut iy t e ur t t tans tons i vi c nd hort o ns e ha r aci nvol ng omm odii s we e t be e cu e on a te r o xe t d n e c a g a d s be tn s h ta a to t t e a t-ru p o so s o te Ac a x h n e n u j ci g uc rns cins o h n ifa d rviin f h t nd Com mison Reg a i . si ultons Count Two of t Com pli aleg t t Hunt r W ie M r M ari a M r J ge he a nt l es ha e s, . tn, nd . a r c ommitd fa i vi ai ofSecin 41oft CommodiyExc ngeAc.Secin 4b()2)of te r ud n olton to 7 he t ha t to a( t Ac saes i r l ntpa t he t t t , n eeva r: ( Unl ulaci a) awf tons I s lbe u a f t hal nl w ul () 2 fra y p ro ,i o i c n e to wi a y o d rt ma e o t ema ig o n e s n n r n o n cin t n r e o k , r h kn h of a c r c ofs l ofa c , ny onta t ae ny omm odiy f rf t e dei r ors p,ha t o ' ur lve y, wa t t u i m a ,ort bemade f oronbe fof orwih,any ot rpe s o he s de o , or hal , t he r on, t r t a o o s b e t oter lso ad sg ae c nrc mak t h n n r u j c t h ue f e in td o ta t r et che to de r ud ora tm ptt c a ordefaud t ot rpe s o a r fa te o he t r he he ron; ( B) wiluly t ma orc et bema t t ohe pes a fle lf l o ke aus o de o he t r ron ny as r por or s a em e or w iluly t en e or c us t be e e ed f e t t t nt lf l o t r a e o nt r or t eoh rp ro a yf lerc r ( r h te es n n as e o d; o l wiluly t dec i ora tm ptt de ei t ot rpe s by a mea lf l o eve te o c ve he he r on ny ns wha s ve i r ga d t a or r or c r t or t dipost o or t oe r n e r o ny de ontac he s ii n e cu i of a or r or conta , or i r ga d t any ac of age y xe ton ny de r ct n e r o t nc pe f med,wih r s t t a or r or con r t f r or i t ca e of ror t e pec o ny de tac o , n he s paag a ( ,wiht ot rperonl) r r ph 2) t he he s . 7U.. j6 ()2 . SC. b a () 28 CountThr al ge t tHunt rW ie, r M a tn,a M r J ge c ee le s ha e s M . ri nd . a r omm it d faud under te r S cin 6 c( )o te Ac a Co sin Re ulto l 0..S cin 6 c( )a d Co sin e t ()1 f h t nd mmiso g ain 8 1 e to ()1 n mmiso o Re u ain 1 0. weeme n t ç u me tt ( g lto 8 1 r a t o t g n he CFTC')e itn a t o iyt p o i tfa d a d a S x si g uh rt o r hbi ru n mani ai n. Pr bii o t Em pl pul to ' ohi ton n he ' oyme ,orAte e Empl nt tmpt d oyme ,ofM a pul tvea nt ni ai nd De e tv De c sa Pr hbto o P ieM a iu ain, 6 Fe Re 41 9 ,41 01(uy 1 c pi e vie nd o iiin n rc np lto 7 d. g. 3 8 4 J 1 4, 2 1. e to 6 c o t Ac i c dfe i 7U. C. 9 1 , ndp o d s i r lv n p r: 01 ) S cin () f he t s o i d n S. j ( ) a r vie ,n ee a t a t i l s l be unl w f f a pe s di e ty or i r ty,t us or e pl or t hal a ul or ny r on, r c l ndiec l o e m oy, at tempt t us or e oy, i conne ton wih ... a c r t of s l of any o e mpl n ci t ontac ae c omm odiy i i e sa e c me ce ...a m a pultve o de ptve de c o t n nt r tt om r ny ni a i r ce i vie r c rva ,i c t a nton of s h r l a r ul t ons as t Com m i s on ont i nce n on r ve i uc u es nd eg a i he si s l pr ul a e. ha l om g t 7U. C. 9 1 . S. j ( ) Comm isonRe a i 18 1, tt s i pe tne pa t si gulton 0. sa e , n ri nt r: ()l s l beunlwf f a pes die ty ori rcl i co ci wih a t hal a ul or ny ron, rcl ndie ty, n nne ton t a ... c r t of s l of a c m o t i i er t t com m er e ...t ny ontac ae ny om diy n nt s a e c o it ntonaly orr ckl sy: ne i l e es l () Us o e oy,or atmptt us o e oy,a ma pultve 1 e r mpl te o e r mpl ny ni ai de c s hemes a ttc t de r ud; vi e, c or rii e o fa ( Make o atmptt ma a t nz ormila ng sae ntofa 2) , r te o ke, ny mt e se di ttme ma e i f tort omi t sae ama e i lf c ne es a y i or rt t ral ac o t o tt t ra a t c s r n de o ma t satme smadenotuntueormila ng;( ) ke he t e nt r se di or ( Enga ,orat 3) ge temptt e e,i a a t prci ,orc s of o ngag n ny c, a tce oure busnes whi h o r t or wo d oper t as a fa or de i i s, c pe aes ul ae r ud cet upon any per son. 1 C. R.j180. 7 F. 1. CountThit n oft Compli cai st tHunt W ie,M r M a tn,a M r J ger ree he ant l m ha er s . ri nd . a ai d and a te t vi a i oft Ac t twer c mit by o he de e nt i t i t t de be td he oltons he t ha e om ted t r f nda s n he nsan matr Se ton 13( oft Ac sae ,i pe tne pa t te . ci a) he t tts n ri nt r: 29 Any pe s who c r on omm is or who wiluly ai , abes c t, lf l ds t, ouns l, c ma , e s om nds i nduce ,orpr ur st c s oc e he omm ison of avi ai ofa oft pr so oft s si ol ton ny he ovii ns hi , c ptr ora oft r e ,r a i , or or r i s pur ua t t s cha e , ha e , ny he uls egultons de s s ued s nt o hi pt r orwho a t i c c s n ombi ton orc er wih any ot rper on i a s h vi a i , nai onc t t he s n ny uc olton orwho wiluly ca e a a tt be done oromit d whih i die ty pe f me lf l us s n c o te c f r c l r or d o om it b hi orano he w oul be a vi a i oft pr sonsoft s c pt r r ted y m t r d ol ton he ovi i hi ha e or a of s h r es r a i ,or o de s may be he d r ponsbl f s h ny uc ul , egultons r r l es i e or uc vi a i a aprncpal olton s i i . 7U. C. 1 c a . S. j 3 () 11 1. LEGAL ANALYSI S if eg t i arme alsat et sr st c u a pur eofpr eci t i ent ç' Ac) s e di t ut hat e ve he r cil pos -h ot tng he nnoc i vi ndi dual i sor who ma know ltl a nve t y ite bout t i rc i a c plxiis of t he ntiaces nd om e te he c omm odii ma ke - fom bei m il orde ei .' CFTC v.RJ Fiz r d ( Co. 31 F.3d tes r t r ng sed c ved ' tge al Q , 0 1 21 1 29( 1hCi. 3 , 3 1 t r 2002) c r.de e 1 S. . ( , e t nid, 24 Ct808 2004) . A.Se to 4 o heAc -Fr u cin b ft t ad Count Tw o of t Co pl nt a l ge t t Hunt r W i e, M r. M a tn, a M r Ja r he m ai le s ha e s ri nd . ge com m it d f a i vi a i of Sec i n 4b of t Com m odiy Exc nge A c . A de e nt i te r ud n ol ton to he t ha t f nda s la e unde Se ton 4b()oft Ac i t CFTC de taes ()t ta mirprs nain, ibl r ci a he t f he monsrt : 1 ha se e e tto mila ng sae nt or omison wa ma ; ( wih s intr and se di ttme , si s de 2) t ce e ; ttt ha he mir pr entton,sa e se es a i t t ment oro ison wasma e i . 1 at1 , m si t ral d. 328.Faiur t esa ih any one l e o t bls oft s elm e si dipostvea woul pr cude t CFTC' fa cl m s 1 he e e nt s s ii nd d e l he S r ud ai . d. ()M irpr s n ain , se dn Sa e ns o Omiso s 1 s e e e t to s Mila ig ttme t, r s in I t f e of sr e de e s n he ac tong vi nc howi o he wie, M r M a tn a M r J ge a gue t t ng t r s . r i nd . a r r ha Hunt r W i e di no m a e s d t ke m i r pr s t tons or de e i om i s ons çW he he s e e en a i c ptve si . l t r m ir pr e a i ha be ma de ndson t ove a lmes a a t c s e es nt ton s en de pe he r l s ge nd he omm on unde sandi r t ng oft i onnai n c he nf to onvey ' I . (ntr quotto omit .Coursma fnd t twhe a ed.' d i enal ains ted) t y i ha n n i vi l dr fs a diti e pr ndi dua a t nd srbut s omotona a tai ng m a e i t t i r a i l nd r ni t ral ha s elyed t r t i o eal c t usomer t t cai ltl t no rs i c s ha l ms ite o ik n omm odii ta a tons t i vi l has a t d tes r ns c i , he ndi dua ce faudul nty.Se Cl yt Br e a Co. v CFFC,794 F. 573,580- ( 1h Ci.1 .I r e l e a on ok r ge . 2d 81 1 t r 986) n addii cl mi t ta r t lc t e wilpr i fom c ti m a ke te , wihouta sng ton, ai ng ha eai usom r l oft r era n r t r nds t dvii t c t e oft lke i he usom r he i lhood oft tnotoc uni i m a e i and de ptve. ha c ng s t ral ce i I r J (9 2 n e CC, 1 9 - 1 4 Trnse Bi r ( 99 a fr nde) CCH)Comm.Fut L.Re !26, 0 a 41576 ( . p. 08 t , CFTC 1 4) a fd s b 98 , f ' u nu JCC I c v CFF 6 F.d 1 5 ( 1hCi. 9 5 . m. n . . C, 3 3 5 7 1 t r 1 9 ) He e Hunt r W ie m ir pr s nt f c s a ut t pr c ous m ea s tans tons i r, e s s e e e ed a t bo he e i tl r ac i t ove s w.l pa tc a ,i die ty a i r c l 1 d t r t i c t e s t bei ve m e as we e r a n riul r t r c l nd ndie ty e he e a l usom r o le tl r so e on t r be f Hunt r W ie pr pa e and diti e doc e s i l ng a count tr d hei hal. e s e rd srbut d um nt , nc udi c sa e e s Tr f of Comm odii f tt m nt, anser tes onns a ta c i ton notc , t t r t i , nd r de onfnna i ies o he e a l c t e s confnni t exit e of t m eal, t l ns a t pur has .Hunt W ie usom r ng he senc he t s he oa , nd he c es er s f ie t i or t pa test tt me a si pur has we e on a fna ed bass i di not own al d o nf m he ri ha he t l t c ed r i nc i, t d t me a s a t m eal,i t r we eany a al, we enoti t r t i c t e s'na . he t l , nd he t s f he e r t l r n he e a l usom r mes Evi nc de onsr tng Hunt r W ie' c de e m ta i e s s onduc c e s ii a l fom t Poston t om s pecfc ly r he ii R e oncii ton s a em e W ila M e z r r ce ve f om D D SC , w hi s a e ç dunt W i e c la i t t nt li m t ge e i d r ch t t d, i er s l Se vc s LLC' gi)rc r r fe tta a o 9 1 / 01 y u c re tp iin s wi C D . r ie , S sc e ods e lc h t s f /4 2 1 o r u r n osto t) t h . Hopki M et sDi son a e'a pur ha eoft ry ounc sofgol . DDSC Poston Re ncla i ns al vii r ' c s hit e d ii co iiton St t nt ,CFTC Ex.4 Acc di y, asco i me by i onnai HuntrW ie pr de , M r aeme s 4. or ngl ntr d nf ton e s ovi d . M e z rw ast ow ne oft gol I f c , M r M e z rdi notown a gol sncet gol di t ge he r he d. n a t . t ge d ny d i he d d notexit net rHunt rW ienorhi de e boughtgol i hi name. Y e ,Hunt rW i e pr ded s ; ihe e s s alr dn s t e s ovi i or a i t D D SC t tm il d M r M e z r and ot s t t rk t y had. nf m ton o ha s e . t ge , her, o hil he Ast t is ofomisons t Elve h Cic t i R. Fiz r d,f o he s ue s i , he e nt r ui, n J t ge al ound t tcl i i ha a m ng t c t n y of r ei ng hug pr is i t pr ci me as i usr wihout i or i t he erait ec vi e oft n he e ous t l nd ty t nf m ng he pr pe tve r t i c t r t t: pe c ntoft fr ' clentl l tmone i t t os c i e al usome s ha $ 95 r e he im s i e e os y n he ypesof i t nt bei adve ts 'wasa omison t twasfa enta a m at roflw . 31 F. nvesme s ng ried' n s i ha r udul s te a 0 3d a 1 t 332. l t i t nt m a t r H unt W i e t a ked e r hi t t w e on wih t r t i n he ns a te , er s r c ve yt ng ha nt t he e a l c t mes ta s cin .As Mr M a o d c nime ,n t n a o ta ta e o a c u twa uso r ' rn a to s . wj o o fr d ohig b u r d r c o n s of i a untl i g t H unt r W ie. Ma o d De ,( 1 - a 5 1 - ) Hu trW iek p fci l i t ot o e s wj o p. DE 91 1 t 6:2 20 . n e s e t and ma nage m ei ul r cor ofa1 is do ten cle st ough t pora . Eve wih is d tc ous e ds l t wnsr m int hr he tl n t t knowldg of t clen s l s s Huntr W ie ne r upda e t tani ma e i l or e e he i t ' os e , e s ve t d he r i ng t ra s pr omotona br hur s t i c t how poory is downsr am c t e s we e doi i t e i l oc e o ndia e l t te usom r r ng n hes comm odii s tans tons l di notmodiy t e doc e s eve as i c i d t ofe t te r ac i . t d f hos um nt n t ontnue o f r he doc e st t de e sf t rus t s i i pr pe tver t i c t e s um nt o he alr or hei e o olct os ci e a l usom r . Hunt r W i e i s or , M r J ge , a M r M ari poc t d t i e e t Hunt W ie e s nve t s . a r nd . tn ke e he ntr s er s c r d c t e sf l nsi agr e t , butne rdi pr de aswel ast f e i c ge f ha ge usom r or oa t e d o ve d, ovi , l he e s t har d or t sor ofm e ast tdi no e s. Hunt rW ie di no i or iscle show i wasusng he t age t l ha d t xit e s d t nf m t int t i t f he undsi r ceved.l t a ofa yi t f te i nse d ppl ng he undst pa of i er s on r ll nsorbuyi a o y f nt e t ea oa ng nd sorng m ea s Hunt r W ie us d t f t i tl , e s e he unds t ofs tis oblg tons The f es r t i cusome s o fe t iai . e eal t r pad r duc d t i a co f i e e her c unt unds gr a l . Huntr W ie c i d t c r i e es and sor ge e ty e s ontnue o ha ge nt r t t a f es eve t e , n hought cha geswe e f no xit ts r i s he r r or ne sen e vce . M r M a tn a M r J ge ,t ough Hunt W ie wiluly m ir pr e e or made . ri nd . a r hr er s , lf l s e es nt d omisons aboutt pr ci met ta a tons a i s i t s c e. l a ton,ba e on is si he e ous al r ns c i t s ue n hi as n ddii sd t m iladi sa e e s a wilul om isons I fnd t t Hunt r W ie pr de a ûove al se ng t t m nt nd lf s i , i ha e s ovi d n t r l mes a ' ha wa i vi ato ofSe tons4b. The e de e s s ge't t s n ol i n ci vi nc howst tHuntrW ie m ild a ha e s se nd de ei d t r t lc t er i o e e i i o ispr i m e a s s he e. c ve he e ai us om s nt nt rng nt t ec ous t l c m () 2 S ine -t t a y lc w:wil a ea nn c l .' ce tr ' h n u k Wi l h v Woiig el ' s To pr s e e ,t CFTC mus s w t t t çg ee nt itnde t derud, ove cintr he t ho ha he çdlfnda ne d o fa ma iult,o d c ie o gh tt ed ee d n ' c n u tr p e e t a e te d pat fo np ae r e ev , r t a h l fn a ts o d c e rs n s n x rme e rme r m t sanda ds of or na y ca e. R. Fiz r d,31 F.3d at 1328.Condud i vi thi hl he t r di r r ' J tge al ' 0 nvol ng t g y unr as e onabl omi sons or m ir pr e ai ...t t pr s nt a da erofmila ng (eal e si se es nt tons ha e e ng se di rti c so r)wh c i ete k o t t eDee d n o s o vo st t(h )De e d n mus h v u t me s ih s i r n wn o h fn a t r o b iu ha t e fn a t t a e h bee awa e of i' ha be f n r t' ve en ound t me t t s i nt r r m e . 1 (nt lquotton o e he c e er equie nt d. i ema ai omitd) te . M r M a tn ha da t da ove sg ove Hunt r W ie' ope ai . M r J ge had t . ri d y-o- y r i ht r e s s r tons . a r he a hort t sg c r c sf Hun e W ie,he pe wih t sr t c plnni , a pr vi d t ut iy o i n onta t or t r s l d t he taegi n ng nd o de he c a t a c pialne es a y t ke p t busne sr nni . To a gue t tt y be ived i good ont c s nd a t c s r o e he i s u ng r ha he le n f t t tHunt rW ie wa m a ng l nst t de l r orr t i c t r , t tt y owne a aih ha e s s ki oa o he a e s e al usome s ha he d ny me a s a t t t i doc e s we e not fa e i i ausbl . The we e t t l, nd ha her um nt r r udulnt s mpl i e y r oo knowl dgea e a t i ved i t pr e st pla i a e. Hunt r W i e a t d r c e s y e bl nd oo nvol n he oc s o e d gnor nc e s c e e kl s l and i en i ly t de i a de r ud t r t i c t e s nt tona l o ce ve nd f a he e a l us om r . Huntr W ie was t m a t r i be nd t m ulil ve s he e. M r J r a M r e s he se m nd hi he t-e l c m . age nd . M a tn c d ha c r td t m ir pr e a i a dec ptve omi sonsi t ag ee e s ri oul ve orece he s e es nt tons nd e i s i n he r m nt t y entr i o wih t de e s t tani ma e i l i pr de t de l r , and t m any he e ed nt t he alr , he r i ng t ras t ovi d he a e s he doc nt Hunt r W ie s nt t t r t l c t r , i l ng t Poston Rec iiton ume s e s e o he eai usome s ncudi he ii onc la i notc ,t Tr ns e of Com m odiy f m s tad c im a i , and account s at ent Hunt i es he a f r t or , r e onfr tons t em s. er W ie a l d isdeae st de r ud t r t i c t e sa p os tve c t e st y s i t s lowe t lr o f a he e al usom r nd r pec i usom r he olcied f r Hunt rW i e' be i .Si H unt r W i e ove s w al t a a tons M r.Jager a M r.M artn o e s s neft nce e s r a 1 r ns c i , nd i had t a lt t i or r t lc t e soft mir e e a i and dec ptve saeme s but he biiy o nf m eai usom r he sepr s nttons e i t t nt , 33 f l d t do s l t ad,Hunt r W i e con i aie o o. ns e e s tnued t f a on t c t er w hie i r a d t he r ud he us om s l t e pe he be tt oft rl s . ne i s hei os es () a Hu trW iesRein eCli n e s ' l c ams a M r J ge a M r M a tn s ek t a ol t m s ve by c am i t y r as bl r le . a r nd . ri e o bs ve he el s l i ng he e ona y e id on s c t t al ge y afi med Huntr W ie s s he e di not f l unde t CFTC' our es ha le dl tr e s' c m d al r he S j rs ito b c u et e ta a to dd n tiv le lv r g d c nr cs o b c u e te a ta u idcin e a s h rnscins i o n ov e ea e o ta t r e a s h cu l delve y e e i a t lne ofbusnes e e i oft Ac a id.5The c am t tt y i r xc pton nd he i i s xc pton he t pple 2 y l i ha he rle on:()HuntrW iesc e;( t CFTC' 1 l eprttveLetr Ba Aci tes eid 1 e s ' ouns l 2) he S 985 ntr eai te , nk tvii l vi t Sae ofPr co M eas Comm.Fut L.Re ( nvol ng he l e ius tl, . p. CCH)! 22, ( 673 CFTC Aug.6, 1 5)( ri fe 11 I e prt i Letr);a ( t Lo 98 heenalr :985 ntr eatve te ' nd 3) he ndonBuli M ake Asociton lon r t s ai and t For gn Exchange Com m it s 1994 l ernatonal Buli M as er A gr ent he ei tee' nt i lon t eem ( r nafe,ç a t Agr e heei tr ç ser e menf'. M ) () i ThePli M e ni oft Ac i Una guous an a ng he t s mbi Be or del ng i o t i r la e cai ,I fr t not t t none of M r J ge a M r f e vi nt her ei nc l ms is e ha . a r nd . M ari scai sc n be f tn' l m a ound r as e onabl bec us t pl i mea ng oft saut y l nguag i e a e he an ni he t t or a e s una g us a t Elvent Cic tf und i Hunt Wie - F. -,201 W L 1 mbiuo , s he e h rui o n er s , - 3d - 4 424435( 1h 1t Ci.201 .l Huntr Wie,t Elve h Cicui a yz t Ac' wor ng,aswela Mr r 4) n e s he e nt r t nal ed he ts di l s . J era M r M ari sa g e s t r a h isfndi . ag nd . tn' r um nt ,o e c t i ngs A s t t tl ve a d or m a gi o he ûe r ge r ned ba i ' or f na ed ta a ton on a s m ia bas s ss' i nc r ns c i i lr i lngua of Dodd- a s 7 U. C.b2()2)D)i(l,t Elve h Cic t f a ge Frnk, ee S. c ( ( ()l) he e nt rui ound t t ha G e r ng r f r ge r l t t a lt t c r hi va ue am ount of a c m odiy or a û ve agi e e s ne aly o he biiy o ont ol gh- l l s om t secur t w ih a com par i y s al val ofcapial know n as t m ar n.'H unt W i at *5 iy t atvel m l ue t , he gi ' er se, 2 I my Fe ua y 1 ,201 O r r If 5n br r 9 4 de , ound t tt e e i unde t Ac di nota y t ha he xc ptons r he t d ppl o HuntrW ie' s me.( 281. e s s che DE ) 34 ( i notng Gls ar Commodiy Fut e Trdi o s y, t ur a ng Commison, htp:/ si t /www.fcgov/ c t. Cons epr eciG duc tonce e/ = r ot to ai ntrcFTcGl s l/nde ht (as viied Fe osa i x. m l t st b. 201 4:. TheEl ve h Cic tsa e t tçlunt rW i edei lve ag sm ia i am e o a e nt r ui tt d ha ll e s tned e r e i l dy n m r ndum t is ot hol ng c pa s pot nta i ve t s i e a ne is ope a i by de c i ng l ve age a the di om ny' e i l n s or ; t xpl i d t r tons s rbi e r st us ofa s le amountofca tlt do t wor ofa muc lr r a e malr pia o he k h age mount''1 ( i .' d. quotng Busnes Oveviw ofHuntrW ieCo i s re e s mmodii ,LLC ( 4- a 21) l a ton,heElve h tes DE 4 t ).n ddii t e nt C ic t f und t tM r M a tn a M r J ger s a t m pt t r ad a s c fc dur tonalr qui e ent r ui o ha . ri nd . a ' te o e pe ii ai e rm a t e nd t defnii ofa te rge c r c' unde 7 U. C.j23 6t t Dodd- a nd o xpa he i ton t vea onta t' r S. 1 2 o he Frnk 2 7 U .S. j23pr i ,n pe tne pa t 6 C. ovdes i ri nt r : ( M ar n ac a) gi count orc r sand Iver acc sorc r t s ontact e age ount ont acs prohi t exceptas authori bi ed zed Exc p a a to ie u d rs bscin( )o t ss cin, pes ns lofe t e t s uh rz d n e u e to b f hi e to no ro hal fr o e e i o,e e i o,o c i t e c i of a tans c i f t de i r nt r nt nt r nt r onfnn he xe uton , ny r a ton or he lve y ofa c m odiy unde a s a r z d c t a c m onl known t t t a as ny om t r t nda di e on r ct om y o he r de a m a gi ac ount m a gi c r c ,l ve age a ount o l ve a con r c ,or r n c , r n ont a t e r cc , r e r ge t a t unde a c r c ,a coun ,a r ng e ,s he e,orde ce t tt Com m i s on r ny ont a t c t r a em nt c m vi ha he si de e m i s s r s t s e f ton orf tons a s h a s anda di d c r c , t r ne e ve he am unc i unc i s uc t r ze ont a t ori m ar t orm a ge i s t ntaly t s m e m a r a s a s ke ed na d n ubs a i l he a nne s uch sa r z c r t t nda di ed ontac . 7U. C.j23( . t Elve h Cic te ai d, S. a)As he e nt rui xpl ne underCFTC rgultons e ai , ( lvergeco rc hassa r z tr a c tonsa i çfrt l A1 e a nta t tnda died ems nd ondii nd s ûo he ongtr (e yeasorl )purha e... s l ' alve a c em tn r onger c s or ae'of e r ge ommodiybya t lv rg c so r 1 C. R. 314 w) A lv r g ta s cin b e tnso i a e e a e u t me . 7 F. j .( . e e a e r n a to , y x e in,s de lt e ngealvergec r t 1 C. R.j314( .M a tna J ge i it a o xcha e a ontac. 7 F. . x) ri nd a r nss t tr le r a ount'orçe r c r t'a us di 7U. C.j23a he e ms ç veage cc ' i veage ontac, s e n S. l l ' nd d fn di 1 C. R. 314 w) a df o ta t . . ne e it . . nalv r g d eie n 7 F. j .( , n k n rcs . e tr d n o . o e ea e c ba i,' us di 7U. C.j2,ha t s memea ngandd ai l ss'as e n S. ve he a ni ur tona . . . r r ent equiem . H unt r W i e a * 5.The ef e M r M ari a M r J erwe e i or e ti a g ng t e s , t 4r or , . tn nd . ag r nc r c n r ui hat snc H unt r W i e' ta a tonsm a ur i f ye s t ta ac i do no c tt e i e e s s r ns c i t e n our ar , he r ns tons t onsiut tlvea 'rns to orta a tonstna donasmia ba i,a t tj2( ( ( ûe rged'ta acins rns ci i nce i lr ss nd ha c)2)D) i i pplc bl t Hunt rW i e' o r tons I a 5. s na i a e o e s s pe a i . d. t 35 a ndme i j2()2)D) çtnuous a b t' I f Mr M atn a M r J ers s se me nt n c( ( , te , t es.' d.I . ri nd . ag ' uggetd a ay i a ple ,te j2 woud rn e j2 c( )D)me nn ls ;S cin 2 c ()D)wo l n l ss p id h n 3 l e d r ()2 ( a ige s e to ()2 ( ud t y gi jt Commisona hort overwha j23ale dy prhi t. 1 Lasl e nt h i onl veg he si ut iy t ra o bis' d. ty, ve houg ' if t ound t saut y t xt una bi he t t or e m guous and r viwi age y i e r t ton a l sa i e e ng nc nt m e a i nd egiltve hit y wa unne say,t Elve h Cic tnot t tboh s c C moniel 'wih a sor s ce sr he e nt rui ed ha t oures t har z dl' t nd t O lme te l'r s e t l,t fn ig .7 û mPC n ld , e p ci y is i dn sz C ' ve As t t û cualdelvey' e e i 7 U. C.j2( ( ( (i(I)a ,t El nt o he i t a i r ' xc pton, S. c)2)D)i)1l(a) he eve h Cic ta i a i d t or na y m e ni oft tr t hol t tû i r mus be ac ual' r ui gan pple he di r a ng he e m o d ha t ve y del t t . ' Huntr Wie a * ( e s , t 9 emphassi orgna) The Elvenh Cicui e ane lf e s que of i n ii l. e t r t xpli d, l' e nce -h e nt c em pl ed by M a tn a J ge - i w hi h t e ec r c t a f r of doc e s ve s ont at ri nd a r n c he l toni r ns e um nt i c tng contolorpos es i efecuat dei r wihoutphysc tans e oft c ndi a i r s son f t es lve y t ial r f r he omm odiy t - i b a dei ton consr tve,rt rt n a t l'I ( tngBl sLaw Di i y 494 s y ny fnii tuci ahe ha cua. d. cii ack' ' ctonar ( h e 2009)( fni çc tu tvedei r 'a ûgl ac t ta 9t d. dei ng ûonsr ci lvey' s tan t ha mount t ata froftteby s o rnse il opeai of1w whe acualta fri i a tc ori sbl ') The Elve h Cic tas rton a n t rnse s mprcial mposi e' . l e nt r ui lo f ound t to he s ur e ofa yss i udi t CFTC' own i e pr t ton,we e ur ce s y ha t r o c s nal i, ncl ng he S nt r e ai r me s ar t ca e ç t ldei r una guousy e l û us acua lve y' mbi be l xcudes t cmsr c i de i r M a tn and J ger he c tu tve lve y ri a a gue oc ur ed.' I . a *1 .2 r c r 'd t 0 8 2 Afe de nov r viw , t El nt Cic ta fr e t l alc us on i t sCour ' 7 tr o e e he eve h r ui f im d he eg oncl i n hi ts F br ay2 , 01 Or e o Plitf sMoi nf rP ei n r lj ncinta j2 c( )D) e u r 6 2 3 d r n an if to o r l ay nu to h t ()2 ( mi c r t t a ac i i di put i t sm a t r H u e W i e a *6. ove s he r ns tons n s e n hi te . nt r s , t 2 TheE1 nt Cic tf t tig as onghi Cour')s undfcua fndi a a trde 8 eve h rui ound ha ûbl ed t s ts o a t l i ng nd fe nov r e ,' hi Cour ' Fe u r 26, 3 O r ron Pl i tf sM o i f Pr lm i r o evi w ' t s t s br a y 201 de a n if t on or e i na y Ij n to s$e a c n lso t thee c pin ddn t p ywa n ter ne u . Hu e Wie nu cin' 1 g l o cu in ha t x e to i o a pl s o ro o s' ntr s , l ' a *7.TheElve h Cic ta s f t e nt r ui lo ound t tmy tndi t tt e or ea e oblgai t delve ha i ng ha he nf c bl i ton o i r e e to , e 7U. C. 2()2 ( (i(l)b ) d dno a p ywa n ta el ro lw sn el xc pi n s e S. j c( )D)i Il( b , i t p l s o n r' f a ic ) o f ound t tHun e W iedi no own t me al. ha tr s d t he t s Hunt Wie,a *8. er s t For t s m e r s ,l fnd t t M r M a tn a M r J ge ' c ai ed r la on o he he a ea ons i ha . r i nd . a r s l m e i nce t r s ce t de e m i w he he H unt W i e' s he e,w hi h i ve m i r pr e a i a our s o t r ne t r er s s c m c nvol d s e es nt tons nd dec ptve om isons vi aed t Ac i unr as bl The pli r di of t sa ut e i s i , ol t he t s e ona e. an ea ng he tt e d mo srtst a t CF h sj rs it n o e Hu trW ie a dt a Hu trW iec mmi e e n tae h t he TC a u idci v r ne s n h t n e s o t d o t faud t tti r d CFTC enf r e e pr e ngs r ha rgge e o c m nt oce di . Hunt W i e' Couns er s s el M r M a tn a M r J ge c am t t Hunt r W ie' lgalc . ri nd . a r l i ha e s s e ouns advie t el s d hem t t ha Hunt rW ie owne a pos es e me a sa t tt ta aci i e ged i di no vi at e s d nd s s d t l nd ha he r ns tons t nga n d t ol e t Ac .l lg of a1 t e de e t t c r r t r pur td r inc on c he t n i ht 1 he vi nc o he onta y, hei pore ela e ouns l i e s di i nuous. s nge I t we la ng up t J y 1 2011 t da et Dodd- ank a e e st t Ac n he eks e di o ul 6, ,he t he Fr m ndm nt o he t bec m e e or e bl M r J e a M r M ari r eve c e r wa ni fom Hunt W ie a nf c a e, . ag r nd . tn ec i d l a r ngs r er s couns l M r Gi nnone t t Hunt r W ie' o r tons we e ilgalunde Dodd- a M r e . ova ha e s s pe a i r le r Fr nk. . G i m one i no unc t n t r s t d M r J ge a M r M a tn t s t down Hunt r W i e oval ,n erai e m , ol . a r nd . ri o hu e s untli c id wih t ActSe E- i fom Gi nnonet J era M a tn(une24,2011 i t omple t he . e mal r ova o ag nd ri J ) ( CFTC Ex.1 a 3) Afe l r ngt tM r M a tn a M r J rhadnotacedupont plns 87 t . tr eani ha . ri nd . age t he a he ha r c m e d e om nded t ke p H unt r W i e f o vi a i t l w , he w a ne t m t t t y o e e s r m ol tng he a r d he ha he co d f c c i i la lt i t c i d Hunt rW ie' ope a i . e E- alfom M a tn ul a e rm nal ibiiy f hey ontnue e s s r tons Se m i r ri t Gi nnone (u1 1 2011 ( o ova J y 2, ) CFTC Ex.1 a 4) Mr M a tn a Mr J ri e i l 69 t . . ri nd . age ntntonaly i e M r Gi nnone' a c and t a t d r kl sy i co i ng t de r ud t r t l gnor d . ova s dvi e, hey c e ec es l n ntnui o fa he eai c t e sa t rD odd- a be m e e f c i us om r f e Fr nk ca f e tve. H unt W i e' o he couns w a ne M r J ge a M r M a tn t t H unt r W ie' er s s t r el r d . a r nd . r i ha e s s doc e s r ga di Hunt r W i e owni a sor ng m e al w e e f s . See Ta um nt e r ng e s ng nd t i t s r al e ped Cal l Bewe n Gr s andGa no ( t e osman udi Nov.21 2011a 11: a. )( , t 45 m. CFTC Ex.227) M r Gr s n . . os ma expl ne t H u e W i e t di f e e be wee t a r ng e i ha wih t m et lSu i s ai d o nt r s he fer nc t n he r a em nt t d t he a ppler (. ,mar n tadi a ount me tt ofs HuntrW ie' oblgai t t rti c t s ie. gi r ng cc s an o fet e s s i tons o he eal usomer) a posesi physc meas E- i fom Gr s n t Ma tn (u1 24,2011 ( nd s sng ial tl. mal r osma o ri J y ) CFTC Ex. 238) M r Caey que tone M r M a tn,i pa tc a ,aboutwhy he beived HuntrW iehad . . r si d . ri n riulr le e s sor me al wih e ch oft Supple st ven wha s e e t be t book e r oblga i as t ed t s t a he ir û gi t e m d o he nty i tons oppos dt s t ng( jc dhol i ( s han 'CaeyDe a 1 11 l e o omehi he oul d n hij d.' r po. t 42: - 7. Eve Hunt W ie' c ns M r Car y,whom M r J ge a M r M ari cli e t r y n er s s ou el . e . a r nd . tn am d o el on f t r u rt ndi ofDodd- n t siid t tM r M a tn' bei ft tHunt W ie or hei nde sa ng Fr nk, e tfe ha . ri s le ha er s ow ne m e a s w a wr d t l s ong.H a he s m pl s d i y poke t t m e a s Supple s M r C a e s a ed,M r n o he t l ir , . r y t t . M a tn woul ha had t a e wha e r ri d ve o cc pt t ve yone ele ale dy kne t b tue:no m eal e se s ra w o er t s xitd. Se Ca ey D e 62: 9- The Suppler 'r pr ent tves c i d t obvi under t ndi e r po. 1 24. i s e es a i onfnne he ous s a ng t tHuntr W ie wa ta ng i ma gi a ount .Owne s p a dei r di notocc untl ha e s s r di n r n cc s r hi nd lve y d ur i HuntrW ie pa d i f lf t me a s The e se e ofHunt W ie' ta ng ac ount ,wih e s i n ul or he t l . xitnc er s s r di c s t ma gi c l,c e s M r M a tn a M r J ge ' urr s bl cai t ti ha t i nt y r n als ount r . ri nd . a r s lea ona e l m ha t d he nve or on ha t de i rm eal t r t i c t e s nd o lve t s o e a l usom r . M r Car y wr e a l galm e andu t t he s t M r J r a M r M a tn on . e ot e mor m ha ent o . age nd . ri Augus 11 2011 i r ar t Dodd- a e or eme .See Car y De 1 22- 47: 7.M r t , n eg ds o Fr nk nf c nt e po. 46: 1 1 . Car y pr mied hi a ysson c ra n matra as umptonst twer i r tand t tgr aty e e s s nal i e ti eil s i ha e ncorec ha e l i l nc d hi ûndi t tt Ac di no a y t Hunt rW ie. exa e, he me or ndum ntue e s ng ha he t d t ppl o e s For mpl t m a t ntc pa es' w ihou i s i i t ta1 oft de l r H u e W ie dea tw ih w e e S i bl s i i t ,' t t nve tgatng, ha 1 he a e s nt r s a l t r ç gi e el c r t pa tc pa s ' a t r or , not r t i c t e s 1 a 1 1 15 22. He was not ontac r i i nt ' nd, he ef e e a l us om r . d. t 49: 7- 0: a r t tonl ahe Hunt rW ier ceved t r t i c t r f wa e ha y r e s e i he e a l usome s' undsdi HuntrW ie ge a e d e s ner t 38 an a ountf t r t i c t e s a s ntbac t de l r 'c oft f nds 1 a 151: 13. cc or he e al usom r nd e k he a e s ut he u . d. t 3- Furhe,Mr Ca e a s dt tl- e W ie' c rcsE e no e c e onal r dor t r . ry sume ha il r s s onta t wer) t xe utd lunt eveage m a gi bass' f a 15 1 1 1 Si e Huntr W ie di i e a t N t r t i c t a r r ned i . #. t 3: 9- 55: 4. nc ' e s d nt r c vih e a l uson e s t oug t pora webst and t de e s de nde on Huntr W ie f fnancal a d a hr h he tl ie he alr pe d e s or i i i nd s vi es H unt rW i e knew M r Ca e sas um ptons we e i c at . er c , e s . r y' s i r nac ur e M r M a tn a M r J erc t t l ala ys sofDodd- a pr pa e by M r Gr s a . ri nd . ag ie o eg nal i Fr nk e r d . os m n on J 23,2011 t s une o uppor is l galr la e c ai .9E- ai f om G r s a t J ge a M a tn tt e e i nc l m 2 m l r os m n o a r nd ri (u e 23 2 1 ( n e W ie Ex.5 ) Mr Gr sma rp e e td Hu trW ie Lly s a d J n , 01 ) Hu tr s 4 . . o s n e r s ne n e s , o d , n i vi ndi dualde l r ,a w e la M r J e a M r M a tn, i vi ly,a hi tng r i sa e a l a e s s l s . ag r nd . r i ndi dual nd s i e prnt r l ove t ss he Bot hi f cualsaeme sa lgalopi ons lc c edi lt .3 M or r hi c me. h s a t t t nt nd e ni a k r biiy 0 eover je ,a e iil not d i a e m alt tt pli mea ng oft Ad wast prma y r our e. 1 a 1. xplcty e n n - i ha he a n ni he he i r es c d. t Consde i t f d t tt Elve h Cic t f und t sa ut r lng ge unn guous i i i rng he a ha he e nt r ui o he tt o y a ua mbi , t s unr s bl f M r M a tn a M r J ge t c am t ha beleve M r G r s a s s r ne ea ona e or . ri nd . a r o l i o ve i d . os m n' t ai d i e pr t ton r t rt t pl i lngua oft Ac . nt r e a i ahe han he an a ge he t Eve a s i M r J ger a M r M a tn bele d M r G r s a s J n s um ng . a nd . ri i ve . os m n' une 23, 2011 e auain t a te CFTC h d n j rs ito o e Hu tr W ie u d r Do d- rn Mr v l to h t h a o u idcin v r n e s n e d F a k, . Gr s a s a yssa m on h lt rcal i o quesi t rdam sofgood f ih r la . W hie os m n' nal i t a e ls nt ton hei i at e ince l e tng t Tr ns e ofPr ci a l ti M e a notc whih we e mea t r pl c t dii he a f r e ous nd ndusral t l i e, c r nt o e a e he Tr nserof Commodiy notc Hunt r W ie s t t r t lc t e s M r Gr s a e a ned a f t ie e s en o eai usom r , . os m n xpl i t tt f r t a oute ty wha i bei he d,ho a f w hom . l now her says t H W ha he o m t ys l xac l t s ng l w nd or t e hat a a ofHW ' cusome deae si (hought y ma be holi a physc lpr uc t ti nd ny s t r lr s t he y ) dng ny ia od t ha s 2 Bec us M r J ge a M r M a tn ç ie t s 9 a e . a r nd . ri a ld o how t tM r Gr s ha . os man wa una ia et t siy s va lbl o e tf a ti l M r Gr s a sde ii w asnota il d a ti l t r a , . os m n' poston dm te t r a . 3 Forf t e dic son ofM r Gr s n' c r dit y a quesi bl conduc asHunt r 0 urh r s us i . os ma s onta c or nd tona e t e W i e' couns ,s e s pr not 24. s s el e u a e 39 r r d t m e toblga i t HW ' de e c t m e soruli a ey t r t lc t e .' E- ai equie o e i tons o s alr uso r tm t l he eai usom r ' m l fom Gr s nt M a tn(ul 2 2011 ( r osma o ri J y 4, ) CFTC Ex. ) M r Gr s n goe ont caiyt t 238 . . osma s o lrf ha Hun e W iewasta ng t of s tisoblgai 'i wasno i pos es i ofa m e a s 1 a 2. tr s r di o fe t i tons, t t n s son ny t l . d. t Furhe mor M r Gr s n satd t tt Poston Re t r e, . os ma t e ha he ii conc la i sa e ntfom DDSC c d iiton t t me r oul l t ntaly' bem il di t r t i c t e ssnc i s é e il' po sea ng o e al usom r i e t uggessHunt rW ie hasphysca m e a s t e s i l tl a DDSC gi s as ur nce of t c nd ve s a s he omm odiis' e senc wihout s eng t m . 1 M r te xit e t e i he d. . Gr s a knowi t tt r was t m ea a t e oft r i bow ,' a s Hunt rW ie os m n, ng ha he e t no t l t he nd he a n ' dvied e s t ti t d be betr...t ( ovi lt thone te a to rt rt n s t r pa te ' ha t t woul te o pr de ha s xplnain ahe ha ome hid ris a s a e t tt ac ountpa r wor de i tng a c s ur nc ha he c pe k sgna i omplt hedge balnc d ta ng poston ee a e r di ii exit . f Hunt rW ie r eved a e l ton ofwha Hunt rW ie' s heme r ly wa , even ss' #. ' e s ec i n vauai t e s s c eal s fom M r Gr s a ye i c e t i ei. r . os m n, t t hos o gnor t Hunt W ie' couns m a M r M a tn a M r J ge a r oft l lt is s t er s s el de . ri nd . a r wa e he egaiy s ue he pr ci m eal tans tonsa lnguage i HuntrW ie' doc e spr s nt . They w e e on e ous t s r aci nd a n e s s um nt e e ed r noi oft de e i ye t y d i d t rs i,lughed a ha ng l j ni c ls'a tce he c pton, t he ecde o ik t a bout vi s oi ng el, nd ad ' c i d t mil d a de i cusome s The e wa no m e a û tt e oft r nbow' ontnue o sea nd ceve t r . r s t l t he nd he ai a ' onl of s ti tans c i . Ra he t n r l upon t a e of c y f e tng r a tons t r ha e y he dvi e ouns l M r J r a M r e , . age nd . M a tn i ed i. r i gnor t On t oft c e rwam i a e ana i fom Hunt rW ie' c op he l a ngs nd xpl tons r e s s ouns , M r.M a tn' el ri s own saeme sc r dithi cl m t thea ualy beleve t tHunt rW ie pos es e m eal. t t nt onta c s ai ha ct l i d ha e s s sd t s l l e J 2011,t FOFR s r ed HuntrW iewih a s n at une he ev e s t ubpoe f doc e st tr lt d t na or um nt ha ea e o is c i i l i si to of one of Hunt r W ie' de e s M i s A s e M a ge ent l t rm na nve tgai n e s s alr , da s t na m . n e a ni t r que tt M r M a tn,M r Gr s xpli ng he e s o . ri . os man saed t tFOFR a ke f t l a i of t t ha s d or he oc ton tealg d yso e meas E- ifo Gr sma t M a t (uy5 2 1 ( h le e l t rd t l. mal r m o s n o ri J 1 , 01 ) CFTC Ex 2 4a 1. n .3 t ) 40 The s ame da M r M a tn r ponde t M r Gr s a c ng M r Ca e sa i çlbe ive y, . ri es d o . os m n, opyi . r y, t tng, t le ourr s e pons t t que t on ofw he e t m e ali s o e ne ds t be c e uly t e o he s i r he t s t r d e o ar f l houghtout' 1 . d. ' M r M a tn' he ia t r s . ri s stncy o e pond bei sany cai t the a t ly be ived Hunt rW ie oris le l m ha c ua l le e s t c t er a t l pos e s d a hi us om s c ualy s s e nyt ng. (i) TheCFTC' 1 5I emrttveLet ii S 98 nt eai ter To ar t tt y be ived t tt y hel ttet t m eal be us oft CFTC' 1 gue ha he le ha he d il o he t s ca e he S 985 I e pr t tve Le t ri hi hl unr s bl The CFTC i s d t 1 nt r e a i te s g y ea ona e. s ue he 985 I e r t tve Le t rafe nt m e a i te t r an ul m e ba r quese lgalclrfc ton ofpotntalla lt unde t Ac r ga di is ma d nk e t d e ai ai e i ibiiy r he t e r ng t pr pos d ta a ton. CFTC e aned, o e r ns c i The xpli A ba tans ton i vi t pur has a s l of pr c ous m e al t be nk r ac i nvol ng he c e nd a e ei ts o s tl d i t busnes da wih t bank r cevi pa e i f lfom a de l r e te n wo i s ys t he e i ng ym nt n ul r ae who woul r s l t m e ast isown r t i c t rwih dieci f t ba d e e l he t l o t ea l usome t r ton or he nk t ta f r owne s p a tte t t m e al t t pur has ' nam e,woul notbe o r ns e r hi nd il o he t s o he c er s d alvergeconrc wihi t me ni ofCo si Re j314( . e a ta t t n he a ng mmison g. . w) I a 1 The CFTC ' 1 l e pr t tve Le t r was i s d t e y-i yea s be or D odd- a d. t . S 985 nt r e a i te s ue w nt tve r f e Fr nk wa pas e I c d notpos i y i e pr tt i s s d. t oul sbl ntr e he mpac Dodd- a woul ha on t l ga iy of t Fr nk d ve he e lt H un e W i e' s m e. t r s s che I t 1 I er e a i Le t r t CFTC f n he 985 nt pr t tve te , he ound t tt t a a ton w asnota l r ed ha he r ns c i eve ag ta acin unde Reg ai j314( .As t Elve h Cic t f rns to r ulton . w) he e nt r ui ound i Huntr Wi ,a n e se lv rg d ta s cin u d r Re u ai n j314( a d u d r j2 c ( )D)i(1 we e n t te e e a e r n a to n e g lto . w) n n e ()2 ( ()l) r o h s me Do d- al b o d n d te CFTC' j rs ito t icu fna c d c mmo i a . d Frr r a e e h k S u idcin o n lde i n e o dt y ta a tons wih c umes Se rnsci t ons r. e U. C. j2()2)D)i(I. Unde t Dodd- a S. c ( ( ()l) r he Frnk a endm e s i t r t i consl e w as e erng i o a fna d t a a ton,t t CFTC had m nt , f he e a l tm r nt i nt i nce r ns c i hen he 41 j rs ito o r te ta s cin' t ee wee n tme r q rme t a u d r Regul i n u idcin ve h r n a to , h r r o i e uie n s s n e ato j314( .1 . w)3 (v) TheM atrAgre nt i se e me M r J e and M r M a tn f ie t s w how i w as r as bl t r l on t M as e . ag r . r i a l d o ho t e ona e o e y he tr Agr men t dee m i t tt i c ua dei r 'exc pton a i t Hunt W ie' s heme. ee t o tr ne ha he ç t l lve y' e i ppled o a er s s c The M a t r A gr e e w as e t bls d s t t pa te s ki t en e pr i se e m nt s a ihe o ha r i s ee ng o t r ec ous m e a tl ta a tons c d us a unior t mplt I pr des no dic so of t lgalt of t r ns c i oul e f m e ae. t ovi s us i n he e iy he ta a tons i t Unie St t a doe notde alho g r m e r gul t s woul e o ce r ns c i n he td aes nd s t i w ove n nt e aor d nf r t i lws M o e v r t e 1 9 M a trAge me te pli n ih rt eCFTC' j rs ito n r her a . ro e , h 9 4 se r e n x ans ete h S u id cin o t l galt ofHunt r W i e' c he e iy e s s onduc ,i lghtoft D odd- a a e t n i he Fr nk m ndm e s The e or t r y nt . r f e, o el on a prva e ag e e be w e n t o pa tes t de e m i w he he D odd- a a i t t i i t r em nt t e w r i o t r ne t r Fr nk pples o he r s he ei hi yunr a ona e. c m s ghl e s bl () b P e iu Ale aino Fru a an t r M a t r vo s lg to f a d g is M . ri n Tha M r M ari ha pr vi de i w ih t FTC, a f de a r gul t y age t . tn d e ous alngs t he e r l e a or ncy, r a di fa a a pr c o m e al tr f t r s eg r ng r ud t e i us t s s m urhe uppors t i c ton t t he w as t he ndi a i ha knowl a e oft t sofi or a i a conduc t two d co tt ecomm odiisfa . edge bl he ype nf m ton nd t ha ul nsiut te r ud The FTC a lge t tUni e ,whe e M r M a tn wor a a e c i , defa d is r t i le d ha m t r . ri ked s n xe utve r ude t e a l c t e s by tf le y r pr e i diec l orby i ia i t tan i t e i pr i usom r Ga s l e es ntng, r ty mplc ton, ha nvesm nt n ecous m eal orc r i tna d by def nda s i 1 i rs 'a tha i i hi y lke y t ta ts urences i nce e nt s ow n ik' nd ç t t s ghl i l ha n t 3 si pl r di t 1 l er e a i Le t rdi pr 1 m y ea ng he 985 nt pr t tve te s ovesM r M a tn a M r J ge ' good f t . ri nd . a r s aih rla c cam. nteLetr t CFTC f u dta te eta s cinsween ts b e tt ein e li l h te,he o n h t h s rn a to r o u jc o r gul ton by t CFTC asûtr ns tonsi vi c r c sofs eofa c modiy f f t e e ai he l a aci nvol ng onta t t al om t or u ur delvey'ast ttnn i us i Se ton2()1( oft Ac.' 1 l e eai Let a ir ha e s ed n ci a( )A) he t'See 985 ntmrttve ter t 3. Howe r unde t Ac , heCFTC m a r gul t t etans c i a l ft agr e e , ve , r he t t y e ae hes r a tons s t he e m nt i c r c ,o ta a i wasa c r tofs l ofa co m odiy f f ur de i r .' 7 U . C. ont a t r r ns cton ontac ae m t or ut e lve y ' S. j2()2)D)ii.Thepli lnguageoft saut make ce t tt 1 I e eai c( ( (i) an a he tt e s lar ha he 985 ntmr ttve Let rstndi woul nota y. te ' i ngs d ppl 42 i t w il e n a hi h pr i on a i ve t e i pr ci m e al or c r nc es tna d by nvesor l ar g oft n n s m nt n e ous t s ur e i i nce de enda s wihi a f w mont oft tm e oft i sm e i m a ' Compl CFTC Ex.1 f nt t n e hs he i he nve t nt s de. ' . 58, FFC v.Uni t No.92me, 5759,7!D- ( Ca. Se .23,1 .The FTC' a to agans M r E CD l, pt 992) S cin i t . M a t c ncu e wihaCo s n Or e ta p nua e tye j ie h m fo mir p e e tn a d ri o ld d t n n e t d r h t e n n l n on d i r m se rs n ig n f lng t dicos ma e i lf t peri t acusome ' de son t e e i o a c modii s aii o s l e t ra ac s tnent o t r s cii o nt r nt ny om te ta a i See Cons Or r as t De e nt E.Keih Owe ,Ed M ari and Ed M ye s r ns cton. ent de o f nda s t ns tn, r, CFTC Ex.1 Fe r Tr Commisonv.Uni tCr tCor , 92- ( Ca.De 59, de al ade si me edi p.No. 5759 CD l, c. 20,1 .TheCons n Or ralopr ntd Mr M a tn fom hepi ot r mirpr s nta 994) e t de s eve e . ri r l ng hes se e e nd om i m a e i f c st c t e s a wel. d. t t ral a t o us om r s l 1 Des t t s Cons Or r ofwhih M r J ge wasa r ,M r M a tn e er d i o t pie hi ent de , c .a r wa e . ri nt e nt he Hun e W ie s he et de r ud rt i c t r . r M ari a M r J ge at mpt d t r t r s c m o f a ea l usome s M . tn nd . a r te e o emove HuntrW iefom die i e f cewih r a lc t e st i ul et m s ve fom vi a i M r e s r r ct nt ra t eti usom r o ns at he el s r oltng . M a tn' Cons tOr ra t Ac . ri s en de nd he t Ge r lDi cl ur A g e m e s ne a s os e r e nt Durng t vitm s t si ony a til M r J e a M r M a tn poi e outt tt r t i i he c i ' e tm t ra , . ag r nd . ri nt d ha he e al c t e s sg d doc e st tcont ne a rs dicl ur whi h i t n woul i cae lck usom r i ne um nt ha ai d ik s os e, c n ur d ndi t a ofs i nt r The El ve h Cic thashe d,howe r t tage a dicos ei no enoug when ce e. e nt r ui l ve ,ha ner l s l ur s t h t defnda ' ovealmesa c ttt fa R. Fiz r d,31 F. a 1 31 (ii he e nts rl s ge onsiues rud. J tgeal 0 3d t 329- ctng CFFC v Sdoi 1 8F.d 1 3 1 3 ( 1 Ci.1 9 )(1 esro sy d u twheh rb iep ae . i t, 7 3 1 2, 1 6 1 1 r 9 9 t e iu l o b W te olr lt rs dicos elnguag c de rrnde a eale maeilmirpr e ai i tra.l.A ik s l ur a e oul ve e r n rir tra se esntton mmaeil' ) ' r t l c t r ca eai usome nnotbe a ur t l i or e of t ta a ton whe Hunt r W ie' ove al cc a ey nf m d he r ns c i n e s s r l mes age wa one of lr pr i ga ns a gua a e m ea s The m ir e e a i and s s a ge oft i nd r nted tl . sepr s nttons 43 om isonsby Hunt rW ie a t Deae De e nt we e t pr l tt ove c e a ge a si e s nd he lr f nda s r oo evaen o r om ner l rs dicl ur a a a e ntt pa f s ik s os e nd n gr eme o y ee . For a1t a o eme i l he f r ntoned r s ,I fnd t tM r J r a M r M a tn kne Hunt r ea ons i ha . age nd . ri w e W ie' omi sons a mir pr e a i r r ng t diputd ta aci i t s m a tr s s si nd se es nttons ega di he s e r ns tons n hi te pr e e a dange of m i l a ng r t i c t m e s The e or t CFTC ha m e is bur n i es nt d r s e di e a l us o r . r f e, he s tt de n pr ng t s int relm e unde Seci n 4b oft Ac . ovi he ce e e nt r to he t ( 3) Mat i iy eralt The ls e e a t l mentofa fa c am i whe he t m ir pr s ntto saeme ,oromis o r ud l i s t r he s e e e ai n, t t nt sin w asm a e i . d r e e a i orom i s on i l a e i l i a r s bl i t w oul c i r t ral 1A epr s nt ton s i s m t r a ' f ea ona e nves or d ons de ii t mpora i de i ng whehe t m a a i t nt' R. Fiz r d,31 F. a 1 29 tnt n c di t r o ke n nvesme .' J tge al 0 3d t 328- (iig A l td Ut Ciie s o Uth v Untd Sats 4 6 U. 1 ,1 3 5 ( 9 2 ;R& W ctn y i e e t n f a . ie t e , 0 S. 28 5 -4 1 7 ) a z Te c Se v . Lt v.CFFC,205 F. 1 1 (t Ci.2000:.M il di i o mai chnial r s, d. 3d 65, 69 5h r sea ng nfr ton r r ng t s f t oft i s m e w oul be dee ed m a e i .See eg. Cl yt Brok r ge ega di he a e y he nve t nt d m t ral , . , a on ea Co v CFF 7 4F.d 5 3 5 0 1( 1h Ci.1 6 (ters ihee ti go d t ft r s . . C, 9 2 7 , 8 -8 1 t r 98 ) lh ik n rn n c mmo iy uu e ) l tadi i amaera fc'.l R. Fiz r d,t Elve h Cic tf r ng s t il a t' n J tge al he e nt rui ound t tf lngt i or ) ha aii o nf m po e i cus o e s t t ne r y a l of a fr ' r t l c t er ha l t m one w a m a eral t ntal t m r ha a l l im s e ai us om s d os y s t i be us a r as bl i t woul w a t kno s h i or a i n be or i tng.31 F. ca e e ona e nves or d nt o w uc nf m to f e nves i 0 3d at1332. Hunt rW ie m a num e ous mir pr s t tons a de e i omi so i c e s de r se e en a i nd c ptve s i ns n onnec i ton wih t s e ofpr c ousm eal.A potnta r t lc t t he al ei ts e il eai usomerwoul fnd i t be a ma e i f c d i to t ral a t t t al os a l of Hunt r W i e' c t e s l t m one I f l t di c os i is ta ni ha m t l e s s usom r os y. t aied o s l e n t r i ng m a l a t doc en s i s nt t r t i c t er t r s i r nt i t pr c o m e a nua s nd he um t t e o e a l us om s he ik nhe e n he e i us t l 44 i sm e si o whih i kne r t i c t r we e e t rng.Ast sis d t by s ve a Hunt r nve t nt nt c t w e a l usome s r n e i e tte o e rl e W i e vi tm s t si or a i w a undoub e y m a e i . s c i , hi nf m ton s t dl t ral Hunt r W ie knowi y mir pr e e t t of a r nge e i had m a wih t e s ngl se es ntd he ype ra m nt t de t he me a sSupple s Eve t tl ir . n hough t we ei or e by Hun e W ie' c hey r nf m d t r s s ouns a t y c imed el nd he onfr i e- a lco munia i t tno m ealexit d on Huntr W ie' be f or on a n m i m c tons ha t se e s s hal, nyone e s s l e' be l f rt tm at r M r M a tn a M r J ge s ug t dec i r t i c t r by wo di haf o ha te , . ri nd . a r o ht o eve e al usome s r ng t i doe e s i s h a w a t m a i s e lke H unt r W i e ha m e a s Hunt W i he r um nt n uc y o ke t e m i e s d tl. er se co i ntnued t s nd o Tr de Confr i ns a Poston Re oncii ton sa e e s satng t t o e ut a mato nd ii c lai tt m nt t i ha r t i c t er ow ne m e a s e a l us om s d t l. HuntrW i e de c i is o f etng ma g n a c sasowni a de i rng m ealon e s s rbed t fs ti r i c ount ng nd lve i t is cle s behaf M r M a tn a M r J ge we e a a e t s des rpton w a f le.Re a l t int ' l. . ri nd . a r r w r hi ci i s as ti c t er t us om s houg t y w e e pur ha i m e a s.The w e e t d t y ow ne t m e a a t t ht he r c s ng t l y r ol he d he t l nd ha , bec us s or w a m or e t c ent t y pa d a s or ge f e t have t de e s a Hunt r W i e a e t age s e fi i , he i t a e o he al r nd e s kee t i me a s s f Undoubtdl knowi t tt y we e no buyi ma e il woul ha p her t l a e. e y, ng ha he r t ng t ra s d ve bee c uc a i or ton t ha a t c i r Pe ha s e r t i c t e s woul ha n r i l nf ma i o ve nd o onsde . r ps om e al usom r d ve e e e i o t s pr c o m e a s t a a tons w ih H unt r W i e ha t know n t t ue rs nt r d nt hi e i us t l r ns c i t e s d hey he r i k i ve and t t ofs he Hunt rW ieha s tup. nvol d he ype c me e s d e Howe r be a e Hunt rW iedi not ve , c us e s d pr de t m wih m a e i i onna i t r a l c t e s e e ed i o t s i t e s ovi he t t ral nf ton, he eti usom r nt r nt he e nvesm nt blndl wihouta ac ur t a c pl t pi t e oft t a a ton. s a r s t t ç a eralt ' i y, t n c a e nd om e e c ur he r ns c i A e ul, he l t i iy' m r qui e e i m e . e r m nt s t Ac di l t CFTC ha me is bur n i pr ng Hunt r W ie i la e f fa cor ng y, he s tt de n ovi e s s i bl or r ud unde Se ton 41 oft A c . r ci 7 he t 45 B. Se ton 6()1 o heAc andCommison Re ai 180. -Fr ci c() ft t si gulton 1 aud Co tTh e alg st a Hu trW iec mmitdfa u d rSe to 6 c( )o t Ac un re l e h t n e s o te rud n e cin () 1 f he t e a Comm iso Reg a i 1 1, whih make i ç a ul f a pe s diecl or nd sin ulton 80. c s t ç wf or ny r on, r ty unl i r c l t us ore pl ...i c ndie ty, o e m oy n onne ton wih ...a c r c ofs e of a co modiy i ci t onta t al ny m t n itrtt c nesae omme c .. a ma pultveorde e i de c '7U. C.j9( ) Be aus oft r e . ny ni ai c ptve vie.' S. 1. c e he smiaiisb t e Se to 6c ( )o t eAc a d Se to 1 ( )o t Se uiisExc n eAc i lrte ewe n cin ()1 f h t n ci n 0 b f he c rte ha g t o 1 3 ,1 U. C. 7 jb ,h CFTC d cd dt ç d lfn l l 1 0 1o (h S c rte a d f 9 4 5 S. j 8( ) te e ie o û e i a Rue 8 . n te e u iis n mo Exc nge Commison Cç '1 Rul 1 b- To a co t f t dif e s bewe n t ha si SEC') e 0 5. c un or he fernce t e he s urtes m a ke s a t de i tves m a ke s t Commi son wil be g de but not ec ii r t nd he rva i r t, he si l ui d, c r l by t s tnta body ofj cilprce nta yi t c r bl lnguag of ontoled, he ubsa il udi a e de ppl ng he ompa a e a e SEC Rul 1 5.52Prohi ton on t Empl m e ,orAte p e Empl e 0b 5 3 bii he oy nt tm td oyme ,ofM a pul tve nt ni a i - a dDe e tv De c sa d P o i iino P ieMa iuain, 6 F d. g. 3 9 41 (uy n c p ie vie n r h bto n rc np lt 7 e Re 41 9 , 401 J l o 1 2011 . dee nti la ef aSe urtesExc ng Ac Secin 1 b)vi ai i t SEC 4, ) A fnda s ibl or c ii ha e t to 0( olton f he p o e :ç 1 maeilmirp e e tto so maeil mila i g o sin ,()i c n e to r v s ç ) tra se r s nain r tral se d n miso s 2 n o n ci n ( y wih t pur s o sl ofs c iis ( ma wih s e e . SEC v Gobl 682 F.d 934, t he cha e r ae e urte , 3) de t cintr' ' . e, 3 942- 43 ( 1h Ci. 2)(nena quotton o te . I wi1 a y t s m e l ga s a r f 3 1 ppl he n e l t nda d or 1 t r 201 itr l ai mitd)3 3 I a c r a ewi Ch v o ,U SA. n .M XJ& J Re ou c sDe n eCou cll c, 6 U. 2 n c o d nc t e r n . I c h /r / s r e R s n i n .4 7 S. , 8 7( 98 ) t Co r s o l d frt a a e y sitr rtto o sauo yln u g d v lp d 3 1 4 ,he u t h u d ee o n g nc ' nep eain f tt tr a g a e e eo e t r u h nl ma i a dc s - y c s a j dc to wh n Co g e sh sgv nt a e yte h o g l kng n a e b -a e d u iain e n r s a i e he g nc h e a to iyt a mi itrt saue Ma a ig sv O hc O uh rt o d nse he ttt . z re o . f e fUS. t r e Ge .2 F.d 1 2 , Ato n y n , 41 3 3 0 1 n. ( 1hCi.2001 (t 327 4 1 t r )ç underChe r wheeCo r si asaut hasno s ke v on, r nges n tt e t po n una bi m guousy on a is t i e pr t ton oft sat e by a ag y e ild t a nitri l n s ue, he nt r e ai he t ut n enc ntte o dmi se t i en ild t de e e e s l ngasi i r as bl Che r de e enc m a be a i d t a nc s tte o f r nc o o t s e ona e. v on f r e y pple o ge y itr rtto sarv da tlo g f r la j d c to ' . n r s g a tdt CFTC te n ep eain rie t l u h o ma du iai n.) Co g e s rn e he r ' h a t o iyt p o l aer lsa dr g lto sf rSe to 6 c( ) s e7U.. j9 1, n t u h rt o r mu g t ue n e uain o ci n ()1, e SC. ( ) a d o e f reteS cin, e 7U. C. 9 4 ( . d risa t rt t CFTC is e Co sin n o c h e to s e S. j ( )A) Un e t uho i he y, su d mmiso S e i nce e 0 5 ppe r e s bl Re a i 18 1. gul ton 0. The CFTC ' r la on SEC Rul 1 b- a a sr a ona e. es 2 3d t e r d o o ei nc m ge , nd os a a i See 3 TheSEC i notr quie t pr ver la e,da a s a l sc us ton. Gobl 68 F. a 3 s 9 3(iain o t d . 4 ctto s mit ) e 46 vi ai ofSe ton 6()1 oft Ac .Acc di y,t CFTC mus pr t tHuntrW ie oltons ci c( ) he t or ngl he t ove ha e s ma ()maera mir pr e ai ormaeral miladi o si ,( i c de 1 t il se esnttons t ily se ng misons 2) n onneci wih ton t t purhas ors eofscu iis ( ma wihs intr he c e al e rte , 3) de t ce e . Be a e I f und t t Hunt r W ie,t ough M r J r a M r M a tn,ma ma e i l c us o ha e s hr . age nd . ri de t ra m ir pr en a i and m ae i ly m iladi om isons wih s int r r ga di t rs of t se es t tons t ra l se ng si t ce e e r ng he ik he c modii ta a tons I nee onl dee m i whe he i di s i c om tes r ns c i , d y tr ne t r t d o n onne ton wih t ci t he purhas ors eofc c e al ommodii .Agai lus Se ton 1 b)oft Sec ii Exc ngeAc a tes n, e ci 0( he urtes ha t nd S Rul 1 b- a a g ie S ci n 1 ( )s tn c n cin wi 'rq ie n t h u d b EC e 0 5 s ud . e to 0 b ' t o ne to t e u rme t t o l e i h' s consr d nottcmial a r titvel butte bl t efe t t (tlr dilpur es' tue e l c ly nd esrci y, l xi y o fcuae is eme a pos . ' S v Za d o d,5 U. 81 ,81 ( 0 2 (n en lq oain o te ) Th ç u c a e'o EC . n f r 35 S. 3 9 2 0 ) itr a u tto s mitd . e t r h s' f p s c iy m a i ve a c nge ofowne s p orapr iet pur s a s curt Se Gobl 682 e urt y nvol ha rhi om s o cha e e iy. e e, F. a 946.A de e 3d t f ndan who ac e e pa e a t n f ie t de i r t s c iy t a t c pt d ym nt nd he a ld o lve he e urt o c t ri la eunde Rul 1 5.d.cii Grppov Per z 357F. 1 1 24( 1h usome s ibl r e 0b- 1 ( tng i . az o, 3d 218, 223- 1 t Ci.2 0 :.The Co r ma l o t whehe t e dee d n ' a to t ud . .i a t a r 04 u t y o k o t r h fn a ts ci n t l . mp c n wo iv so ' d cso t p rh s as c rt 'I ; e as S v T x Gufs l rCo, F.d n e t rs e iin o u c a e e u i ' d s e lo EC . e . l uphu .401 2 y. 8 3,8 2 ( d Ci.1 68 ( o dn t a a Rue 1 b- v oain e it E e v ra s rin ae 3 6 2 r 9 ) h l ig h t l 0 5 i lto x ss i ne e se t s r wh o ma ...n amanne ras bl cacultdt i l ncet i tngpublc). de i r e ona y l ae o ntue he nvesi i' l t co modii c e ,I mus de e m i whe he Huntr W ie' co uc was i n he m tes ontxt t t r ne t r e s s nd t n c n e to t t erti c tmes d cso t e trit t s be tta a to s Th CFTC h s o n cin o h eal uso r' e iin o ne n o he u j c rns ci n . e a pr n t t Hunt r W ie m a coun l s mir pr e a i ove ha e s de tes se es nt tons a de ptve omisons i nd ce i si n conne ton wih t s l oft pr c ousme a s A sme i d a ci t he a e he e i tl. ntone bove Hun e W ie t ough M r , t r s , hr . M a tn,M r J r is r e e a i ,a t doc nt i pr de t is de e s a s ntt ri . age , t epr s nttves nd he ume s t ovi d o t alr nd e o r t lc t e s c im e f s l t ti ha physc me a s f is c t e s a f ie t eai usom r , onfr d aley ha t d ial t l or t usom r nd a ld o dicl e Hunt rW ie s i ve ti t s m e Hun e W ie f ie t dicos t ti onl s os e s ' nvol men n he che . t r s al d o s l e ha t y ha i pe e res' r r ng is ive or Furher is doc nt a tai ng m aeral d l r nti ' ega di t n nt y. t , t pa ume s nd r ni t i fa e l cl me s ce s i t s ta a tons e n whe Hunt r W i e' o a ountng r udul nty ai d uc s n he e r ns c i , ve n e s s wn cc i s e t tove 90 of iscus om e sw e e l i m one . H un e W i e m i r pr s nt d t r t how d ha r % t t r r osng y t r s s e e e e he a e of r t n and rs of t ta a to .Vitm s of Ht e W ie' s m e t sii d t t t s eur ik he r ns c i ns c i mt r s s che e tfe ha hi i or ton wo d ha i nf ma i ul ve niue e t i de son t pur has comm odii s Ther f e, t nc d her cii o c e te . e or he CFTC' al to s ts yt ti co S legai ns a if he ln nneci wih'r uie e . ton t ' eq r m nt Acc di y,t CFTC ha m e is bur n i p ovi Hunt r W ie i la e f fa or ngl he s tt de n r ng e s s ibl or r ud underSe ton6()1 oft Acta CommisonReg ai 1 1 ci c( ) he nd si ulton 80.. C.Seci 13()o heAc -Ai ng andAbetng t Vi atonso heAc ton a ft t di ti he ol i ft t Coun Thite oft Com pl n c am st tHuntrW ieai d a a ted t vi ai ns t re n he ait l i ha e s de nd be t he ol to oft Ac t twe e c he t ha r omm it d by ot rde e n s i t i t ntm at r The e o e,be us of te he f nda t n he nsa te . r f r ca e HuntrW ie' a ons i i la eunde Se on 1 a oft Ad.7U. C.j13 a . defnda e s s di ,t s ibl r di 3() he S. c() A e nt wil efu la l i i û n wigy a s cae (tef wi a u lwf lv nu e p rii ae i i l b o nd ibe f t l o n l so its islj t n na u e tr , a t p ts n t k h c t brng i a ,a s e by (t)a tonst makei s e 'CFFC v TrniyFi Gr ,I . o i t bout nd e ks is ci o t ucc ed-' . i t n. p. nc, 1 WL8 997 20970( D. a.Se .29,1 (nena quottonsomitd) r v' onot rgr S. Fl pt 997) itr l ai te , e d he ounds s b n m. C v Sioi 1 F.d 1 3 ( 1h Ci.1 9 ) s eas Bo c v Se h n,8 6 F.d u o CFT . d t, 78 3 1 2 1 t r 9 9 ) e lo s o . r a t 3 2 y 2 ,27 (t Ci.1 8 )(i dn t a s cin 1 () l e i c i n llw 5çrequies not onl 71 9 7h r 9 7 fn ig h t e to 3a , i n rmi a a ç r k k o e g o tep icp lso j cieb tad sr t h l hm ati i' . n wld e f h rn ia' b e tv u e ie o ep i t n t' a ) 48 () 1 Prmay Voa in i r ilto TheCour f t oundpr vi l t tLl a t DeaerDe e nt vi aed Se ton 4( e ousy ha oyds nd he l f nda s olt ci a) t e s s nt r di y n he che of t Ac .4 LI ds ac ed as Hunt r W i e' i e m e ar i t s m e. l ac e e t he t3 oy t c pt d he i o m a i a f nds t De l r De e nt obt ne fom t r t i c t e s i t s nf r ton nd u he a e f nda s ai d r he e a l usom r n he e c modii ta a tons a s r t m wih Hunt W ie. The Deae Def nda s heped om tes r ns c i nd ha ed he t er s lr e nt l f t r Hunt r W ie' s he e by maki m ae il mir pr s ntto a f lng t dic os urhe e s s c m ng tra se e e a i ns nd aii o s l e m a e i li o m a i t t r t i c t e s w hom t y s lc t f r Hunt rW i e. t r a nf r ton o he e a l us om r , he o i ied o e s () 2 Ai ra dAb to 'Kn wld o h Prma y Vil in de n etrs o e ge fte i r oat o M r M a tn a M r J e c a m t y wer i c r oft s m e.I a e- ai boa tng . r i nd . ag r l i he e n ha ge he che n n m l si a utH un e W i e' bus ne s M r J e e ai d t tH unt W i e d nves or a e notpl r i bo t r s s i s , . ag r xpl ne ha er s t i t s r aye s n t c i i t a t y own t c sno....Puta he wa otri sor a e notbe tng on t he asno, nse d he he a i not r y, l nve t s r ti he hore ;weo t r c ta k Eil Thepoi i t twec r t pr es,and sa t ma ss wn he a e r c sc . nt s ha ontol he oc s tnd o ke mone no mat wheet makess f. E- lfom J e t Pa r Pa (une 1,2008) y ter r he r t hit' mai r ag r o ndo a ng J ' ( CFTC Ex.1 a 1.HuntrW ie masemi a f clttd t spr es ofc ai r t l 80 t ) e s tr nded nd a iiae hi oc s he tng eai cust er om s. M r J r a M r M a tn s e t ar t t be us t i Dea e Pur has & Sa e . age nd . ri e m o gue ha , ca e he r lr c e l Agr e e a t De l r Loan, Sec iy & St r ge Agr e e dicai e a ag y e m nt nd he a e urt oa e m nt s l m d n enc r l i hi t a e notla e f a ssi t De lr Def nt i vi ai t Ac . The eatons p, hey r ibl or itng he ae enda s n ol tng he t y cai t tt De e De e nt ha complt a onom y ove t i i e ac i wih t r t i l m ha he alr f nda s d e e ut r her nt r tons t he e a l c t e s The e de e pr entd atti le usom r . vi nc es e ra xpos t i r ntf la e i t ra gum e s A n es he nhe e al cis n hei r nt . a nc r a i hi doe no ha t e s t fnd Hunt r W i e la e f r s t m a ialy ge y eltons p s t ve o xit o i e s i bl o yse tc l 3 A snot pr ousy, on Fe ar 5,201 t Cour e er d a Cons ntOr ra t Ll . 4 ed evi l bnz y 4, he t nt e e de s o oyds ( 25 . Cou taloe eedaCons ntOr rast ( )Newbrdge( 289 a ( USCT DE 4) The r s ntr e de o 1 i DE ) nd 2) ( 288) TheCo ts l e erdea tj DE . ur hal nt ful udgme agans CD Ho nsa Blc t unde nt i t pki nd a ksone r s pa a e O r r e r t de . 49 der udi t i downsr a c t r o o t i f . I f c ,t D e l rD ef nda s ha t fa ng her te m usome s ut f her unds n a t he a e e nt d o i or HuntrW ie r pr e ai soft i r t i c t m e s i ta ta . Thi r uie e w as nf m e s e es nt tve her ea l uso r ' nii l r des s eq r m nt s be a e a r t i cusome ' a co c d no be c e t d untlHunt rW ie s tt prc a o c us e a l t rs c unt oul t rae i e s e he i es nd r c ve t fmds. e ei d he t One oft çe t e 't tHuntrW ieoferd wast ti wo d ç ne ael alta he ç aurs' ha f e s fe ha t ul i r t ) l rdege r a e c t r c r s nde e unde a ç hie La 'ara m e . . . . A s a a d bonus elt d usome or e po nc s r W t bel r nge nt n dde , bot ghe De e a Cle Poral ae as brnded wih ghe De e ')c h t ) alr nd int t s r lo a t t alrs ompa na a ny me nd l ' Hunt r W ie' De l r Pora Us r Gui , CFTC Ex.1 a 4.Thr h Hunt W ie' ogo. ' e s s ae tl e de 26 t oug er s s mai ena e oft po t we ie t ough whih Hun e W ie ge r t d a s ntdocume st nt nc he ral bst , hr c t r s ne a e nd e nt o t r t lc t he eai usomer ,Hunt r W ie wasabl t l a c t r i o bei vi t r we e me a s s e s e o e d usome s nt le ng he e r tl sor on t i be l.Durng hi de ii , Mr M a o d,an n-a t d ae i t i matr t ed he r haf i s poston . wj o o p ry e lr n hs te , c i me how de ep i t s C hie La ' f t e wa i ta a ons M r M a o d sae ontr d g tve hi é t bel' eaur W s n r ns di . . wj o ttd, ç r --eve y ie t tg t s ntoutt y i vi i y Eve r tm ha e s e o our ndi dualci nt uli a ey c e fo Hunt r le s tm t l om s r m e W ie' M a o d De ( 1 - a 1 0 1 - 8 .Ev n moe tlng Mr M a o d noe ç s . wj o p. DE 91 1 t 7 :6 1 ) e r el , . wj o td, ç ' i 1 neve unde sood w hy t y w o d us Bl ks one M e a s G r p or a ot r na e, be a e r rt he ul e ac t t l ou ny he m c us whe ve we wo d as t tquesi i t e i' Hu e W ie t tsdoi i, a t tswhy ne r ul k ha ton, n he nd ts nt r s ha ' ng t nd ha ' Ine runde s ood t . f at1 1 1 22. ve rt hat' J. 74: 8- 75: ' M r M a o d as tsiid t a Hu trW ie wo l stt e itrs a u t o t e . wj o lo e tfe h t ne s u d e h ne e t mo ns n h pur re l nsa f esHuntrW ie a t Deae De e n swoul c r r t lc t po td oa nd e e s nd he lr f nda t d ha ge e ai usomer . s 1 at 1 17 (ttng t t fes wee st t Huntr W ie die ty.And t whae i d. 34:- sai ha e r e t by e s r cl hen tver s c mmu c td ( a kso eMeasGr u o e Bai Ke e )wo l p o a l h vea r e wi o niae , Blc t n tl o p wn r rs s r u d r b b y a g e d t h i' .Hune W ie kne t tt Deae De e nt we e l ng t rti c tme s as i was t' ) tr s w ha he lr f nda s r yi o eal uso r, t Hunt rW ie t tc e e t f e s ha r atd he onusa m a e i t De e Def nt us t do s . nd t ral he alr enda s ed o o 50 ( 3) Ai randAbet I e inal As itdi t Prmar Vi aton de tor ntnto l sse n he i y ol i y Syl a W iln s a f me br rde e i Huntr W i e s s me,a Fr nk Ga no, vi lim , or r oke - alr n e s ' che nd a udi ow ne of Ll , Hunt r W i e' i e m edi r be w e n i a t D e l r D e e nt , bot r oyds e s s nt r a y t e t nd he a e f nda s h t tfe t ho Hunt rW ie heped a ma ge t s he . M s W ila sr ceved ad fom esii d o w e s l nd na d he c me . li m e i i r Hunt W ie' r pr s nt tve on how t esa ih a f e g cor a i s t t s c d be a er s s e e e ai s o t bls or i n por ton o ha he oul Huntr W ie br rdeaer i Fl i .M s W ila s t s ii d t t he compa de nde on e s oke - l n orda . lim e tte ha r ny pe d H unt r W i e f is a im one l unde i doc e s c pla e m a l , a r a e s r i e . e s or t nty a r ng um nt , om i nc nua s nd el t d e v c s W iln Tesi lims tmony,Feb.27,201 ( 300a 24:6- ) Shee anedt the c ny onl 4 DE t 1 23 . xpli ha r ompa y ha a oxi a ey $100, i c pialbec us Hunt rW ier e ve aloft r t lc t e s d ppr m t l 000 n a t a e e s ec i d 1 he eai usom r ' money a s S d r ueta wie be s ntbac t twa due ba t ( r a fra t nd he ç woul eq s r e k ha s ck o he ) s a s he comm isonsand t s r c a a i e e t'1 a 30: - M r Ga no t tfe aboutl ng si he e vie nd ny nt r s . d. t 1 3. . udi esii d ' ooki t HuntrW iet pr det s viesLl o e s o ovi he er c oydspr omot a isown. ed s t The e wines e des rbe how Hunt W ie' co uc not o y a de t De l r s t ss ci d er s s nd t nl i d he a e De e f ndant vi a i ,but con r l d t i a lt t e ut t s' oltons tole her biiy o xec e hem a wel. W ihout Hunt r s l t e W ie' hep,t De l rDe enda swoul notha be n a et che tt vitm si t saci . s s l he a e f nt d ve e bl o a he c i n hi ton As t l a r oft s he Hunt rW ie d d m o e t n wha is a r e e sw ih t de l r he e de he c me, e s i r ha t t g e m nt t he a e s des i d.W hie Hunt r W ie s crbe l e s ough t hi e be nd t c t n of is de l s t e de e t o d hi he urai t aer , he vi nc s hows Hunt rW ie wa c e s s onductng t e ie or he ta.l ed,t de e spl ye t t t i he ntr c sr nde he alr a d o he une Hu e W iec e, tisdie ton. nt r s hos a t r c i Now i r us t f c t musc t ef es o a e he i. Ac or i y,t CFTC ha m e is bur n i pr ng Hunt r W ie i la e f fa c dngl he s tt de n ovi e s s ibl or r ud unde Se on 1 a oft Ac. r di 3() he t 51 D . Cont oli Pe s r lng r ons The CFTC s ks t hol M r J ge a M r M a tn la e f r Ht e W ie s c ee o d . a r nd . ri i bl o mt r s ' onduc t b c us t e c n r le t ec r o ai n l myFe r ay 1 , 4 Or e ( 28 ) lf u d M r e a e h y o told h o p rto . n b u r 9 201 d r DE 1 , o n . J ge a M r M a tn la e a c r lng pe s ofHunt rW ie Ac r ng,I tnd t t y a r nd . ri i bl s ontoli rons e s . co di i hat he a ela l u d rS cin 1 cb , U.. j 1 cb a t Co n sTwo Th e ,a d Thre n o te r ibe n e e to 3 ( ) 7 SC. 3 ( ) s o u t , r e n ite f h Compl nt Se o 13 b)e ans: ai . din c( xpli Any pe s who,die l ori r ty,co r s a pe s n who ha vi a e a r on r cty ndiecl ntol ny r o s olt d ny pr son oft sc pt rora oft r l s r gulto ,o or r is d pur uan ovii hi ha e ny he u e , e a i ns r de s s ue s t t t scha e m a be he d la e f s h vi a i i a a ton br o hi ptr y l ibl or uc olton n ny c i oughtby t he Comm ison t t s me e e a s h c r ld pe s n.l s h a ton,t s i o he a xtnt s uc ontole r o n uc ci he Co mison hast bur n ofpr ng t tt c r lng pe s di nota ti m si he de ovi ha he ontoli r on d c n good f t o knowi y i aih r ngl nduce diec l or i r cty, t a t or a t d, r ty ndie l he c s cs c tt i t vi a i ons iutng he ol ton. 7U.. j 1 cb . eElve t Cic th sn tdt a Se to 1 ( )o t Ac i ç b u p we SC. 3 ( ) Th e nh rui a o e h t cin 3 b f he t s s o t o r a a i posng la lt f t ewho f i t e r s i t pr ve il lc nd m i i biiy or hos a l o xe cie t o e nt lega onduct'R. Fiz r d .' J tge al t Co. 31 F. a 1 t , 0 3d t 334.The ç u m e a pum os ' of t sa ut i lt r c be nd t û ndn nt l f e' he tt e s to ea h hi he co por t en iy t t c r lng i vi l of t c or ton a t i r a e tt o he ontoli ndi dua s he op a i nd o mpos la lt f e ibiiy or vi a i of t Ac diecl on s h i vi l as wel a on t c por ton is l.' f oltons he t r ty uc ndi dua s l s he or a i t ef ' #. ( u tn JCC,I .v q o ig nc .CFFC,63 F.d 1 5 5 7 ( 1h Ci.1 95 Un e S din 1 ( ) t 3 5 7,1 6 1 t r 9 :. d r e o 3 b , o de ons r t t ta i vi m t a e ha n ndi dualde e an ha c r o rt e iy r quie t CFTC t s f nd t d ontol ve he ntt e r s he o how t c r lng i vi l ( )ha conr a ( lc good fih orknowi y i e t he ontoli ndi dua: 1 d tol nd 2) a ked at ngl nduc d he a t c n t ui t vilto S e 7 U.. j 1 cb ;I r Fis Na 1 T a ig Cop. ( 9 2 cs o si t he oain. e t ng SC. 3 ( ) n e rt t r dn r , 1 9 1 9 Trn frBi d r Co F t L. p ( 9 4 a se n e) mm. u . Re . CCH)2 ,4 , t417 7( 6 1 2 a ,8 CFTC J l 2 1 9 ) afd uy 0, 9 4 ,f ' wihouto ni s nom.Pi v CFFC, F. 11 ( hCi.1 . t pi on ub , ck . 99 3d 39 6t r 996) Ast t fr tpr o he is ong,t e tbls con r ,t CFTC m us s o sa ih tol he t how t i vi pos es e he ndi dual s s d ge r lc r ove t o r ton oft e iy prncpaly la e.Se R. Fiz r d & Co. 31 ne a ontol r he pe a i he ntt i i l i bl e J tge al , 0 52 F. a 1 3d t 334. The Co tm a fnd c r e sswher evi nc de ur y i ontol xit e de e monsr t t tt i vi l ta es ha he ndi dua i a o ic r f unde ,prncpal ort a horz d sg t y on t co pa sba a co t . See s n f e,o r i i , he ut i e i na or he m ny' nk c un s I r S e l (98 - 9 0 Trnse Bid r Co n e pige, 1 7 1 9 a fr n e ) mm.F t L. p ( u . Re CCH)2 ,0 , t3 7 7 ( TC 4 1 3 a 4 6 CF J n.1 1 ) Ast t s co pr t CFTC mus s w t i vi leihe lcke good a 2, 988 . o he e nd ong, he t ho he ndi dua t r a d f t or knowi y i aih ngl nduce t ac s To e tbls good f ih,t CFTC mus s d he t . sa ih at he t how t tt ha he i vi ndi dualf ie t m ant i a l ea ona y a uae s t m ofi e na s r son and c r ' al d o i an k s bl deq t yse r nt r l upe vii ontol' ordi no ove s et s tm ç t any r as bl dii nce'M onis v CF FC,996 F. 852, d t r e he yse l h wi e ona e lge .' e on . 2d 8 0( t Ci. 9 3 ( u tn Ha rs n v De n WitrRe n ls I c, 7 F.d 8 , 81(t Ci. 6 7h r 1 9 ) q o ig r io . a t y o d , n .9 4 2 73 8 7h r e 1 9 :. e tbl h te S n wig i d c me t ee n ,te CFTC h st eb r e o s o n 9 2 To sa i h l o n n u e n' lme t h s k ' a h u d n f h wig t t % he c r lng pe s ha ac ual o c t u tve know l dg of t cor a tvii t t ha t t ontoli r on d t r ons r c i e e he e c i tes ha c tt e t vi a i a i s and a l ons iut he ol tons t s ue lowed t m t con i ' JCC, I . 63 F. at 1 he o tnue.' nc , 3d 568 ( tng f r S e , 24,03, a 34, . Co r lng pe s c quoi n e pigel 1 t 767) ntoli rons annot a d la lt by voi ibiiy delber t y orr kl sy a di knowldge a i ael ec es l voi ng e boutpot nta w r doi I r S e l 24,03, e il ong ng. n e pige, 1 at 34, 767.Cours ha f t ve ound t t c t c i knowl dge of wr ha onsnz tve e ongdoi i s tcen f r a ng s ufi i t o tndi of knowi i uc m e .See JCC, I , 63 F. a 1 i ng ng nd e nt nc. 3d t 568. To s uppor a fndi of t i ng c t c i knowldge,t CFTC mus s onsnztve e he t how t ta de e ha f ndantçlc d a t kno e o y ça ke cual wl dge nl be us hec ci l a de i. 1 a 1 (iai omitd) ca e ons ousy voi d t' d. t 569 cttons te . ' The CFTC alege t tM r J era M r M a tn c r ld a knowi y i l s ha . ag nd . ri ontole nd ngl nduce t d he conduc of Hunt r W ie.M r J ge wa t Chaiman a Chif Exec i Ofi e of Hunt r t e s . a r s he r nd e utve fc r e W ie,a M r M ari was t Pr i nt a Chi f Ope a i Ofi e .Alhough M r M a tn s nd . tn he esde nd e r tng fc r t . ri over a t da t da busne s o ai ns M r J ge ' posto wihi Hunt W ie s w he y-o- y i s per to , . a rs ii n t n er s demonsrtsheha knowl ofa çdie te t e nomi ape t' oft eniy.Apache tae d edge nd ' rcld) he co c s cs' he tt Tr ng Cor ( 990- 992 Trnse Bi r Comm.Fut L.Re ( adi p. 1 1 a fr nde) . p. CCH) 25, a 38, 251, t 795 53 ( CFTC M a .11 1 .Boh i vi l we ea horze t a di e eri oag e me swih r , 992) t ndi duas r ut i d o, nd d, nt nt r e nt t t Supple s f H unt r W ie' m a g n t a ng ta a tons l s g ng t a ee e s a he i r or e s s r i r di r ns c i . n i ni he gr m nt nd tadi w ih t Supple s M r J ger and M r M a tn we e a a e, or pur el a de r ng t he ir , . a . ri r w r pos y voi d be om i a e t tHunt W ie di notown orac r t c c ng war , ha er s d quie he omm odiis. t r or Hunt r te Furhe m e, e W ie co eli or d M r M a tn a M r J ge oft dif r nc sbewe owni me a f l s uns nf me . ri nd . a r he fe e e t en ng t l uly a t of s tt a ng Hunt r W i e w a c nd he f e r di e s s onduc i w ih t Supple s A s s h,I tnd t t t tng t he ir . uc i ha he CFTC ha m e isbur n i s i t tM r J ge a M r M a tn c r l d H u e W ie and s tt de n how ng ha . a r nd . r i ontole nt r s knowi yi uc dHuntrW iet vi aeSe ton4( oft Ac. ngl nd e e s o olt ci a) he t l V. RELI REQUESTED /DAM AGES EF Be aus Hunt r W ie c mitd faud a a de ot r i vi a i t Ac ,t CFTC c e e s om te r nd i d he s n oltng he t he s e saCo r o d ra t rzn : ( )ap nn n n ij n to a ta ig a dr gsrto b n ( ek u t r e uho ii g 1 e a e t n u cin nd r dn n e itain a ; 2) r si to a d ()a Ci lM o e Pe at (t P' a an tHu trW ie M r J g r a d Mr ett in; n 3 u vi n y n l û y CM ' g i s n e s , . a e, n ) . M ari tn. A.Pe mane I j i and Tr ng andRe sr in Ban r nt n uncton adi gitato The A c a l s a di t i t c t çu t low sr c our, l pon a pr oper s w i ' t gr nt a pe m ane ho ng,' o a r nt ij n to CFF v lhr I v Mgmt r ,5 F.d 1 3 ,1 4 ( 1h Ci.2 0 ) l nu cin. C .Wis ie n . .Cop. 31 3 3 9 3 6 1 t r 0 8 . n rviwig te ga t o a ij ncin,th utmae ts . .i wh t rt e d fn a ts p s e e n h r n f n nu to s e li t e t . s ehe h ee d n ' a t t c onducti c t s t tt r i a r a ona e lkelhood of f t r vi ai i t f t e' 1 ndia e ha he e s e s bl i i urhe ol tons n he uur .' d. (ntr quoai omit ( tngSi i 178F. a 11 .Spe iialy,t f l ng fco s i enal tton ted) cii dot, 3d t 37) cfc l he olowi a tr s d be cons de e houl i r d: ( hee e o nes oft dee ntsa tons t iolt orrcure naur of Tj grgius s he fnda ' ci , he s aed e rnt t e t i r ton,t de ee of s i t r i ve t snc rt of t de e nt s he nfac i he gr c en e nvol d, he i e iy he f nda ' a s anc a ns f tr vi a i ,t def nda ' r cog ton oft wr f s ur es gai t utze ol tons he e nt s e nii he ong ul naur of hi c t e s onduc ,a t lke i t nd he i lhood t t t de e nts oc pa i wil ha he f nda ' cu ton l pr s ntopporunii s f f ur vi a i . ee t te or ut e ol tons 54 SEC v.Car i Ai,I .681F. 1 8,1 ( 1h Ci.1 . rba r nc, 2d 31 322 1 t r 982) As t t frt a s cond c i r to ,Hunt r W ie' eondud wa eg e ous a o he is nd e onsde ai ns e s s s r gi nd r c r nt Forove a yea a a hal,Hunt rW ie m a m a e i m ir pr e a i a e ure . r r nd f e s de t ral s e es nt tons boutt he pr ci me a ta aci ,t rs i ve and t s ce s oft i sm e , whie,a t e ous t l r ns tons he ik nvol d, he uc s he nve t nt l t he s m etm e usng t f a i , i he undst buy pr ci m eal fom t Supple s on is own be f Hunt o e ous t s r he ir t hal. er W ie di notus t r t lcusome s'f s d e he eai t r bndsast we e s ppos d t be ts d:t bu pr ci hey r u e o le o y e ous metl on t i behafwih l ns As lno e pr vi l t s he M r J er a M r M a tn as her l t oa . t d e ousy, he c me . ag nd . r i de ope wasc cult d t dec i r t lcusome s vel d al a e o eve eai t r . The e de t CFTC pr s nt a ti de vi nce he e e ed t ral monsr t t t Hunt r W ie a e wih a ta es ha e s ctd t hi de eeofs i t r I wa a r t ti wa mil di isdownsr a c t e s t ti was gh gr cen e . t s wa e ha t s sea ng t te m usom r , ha t no alocai t f t l tng he unds t pur ha e pr i m ea s o t r t i c t m e s be l, t t is o e s ecous t l n he e al uso r ' haf ha t tani a pr otona m ae i l we e wr r i ng nd om i l tra r ong, a t t no l ns we e dibur e f r t nd ha oa r s s d o he c t m e s.I s uso r t uppore a c r l t Dea e Def nt a Ll td nd ontoled he l r enda s nd oyds i t i s i tton of n he r oleia i r t i c t e s t acommi son, r c ve f esf o e r c t e a l usom r , ook s i and e ei d e r m ve y usomert twa mil . ha s sed Furhe t nnor M r J ge a M r M a tn ha not r cog ze any wr e, . a r nd . ri ve e ni d ongdoi . The ng lkelhood off ur vi a i i s r i i kt e ol tons s t ong,es c aly be us M r J ge a M r M a tn a g t t pe i l ca e . a r nd . ri r ue ha t ie he r ondud i de r udi r t i e t e s out of m ilons of dola s w as l ii a e a bot n f a ng e a l usom r li lr eg tm t nd h w e e a a e of M r M a tn' Uni e Cons nt O r r pr bii t e t f au he c m it d r w r . ri s m t e de ohi tng he xac r d om te her e. The eor Ifnd t tapema ntij to i a o it be a e HuntrW ie,M r r f e, i ha r ne nuncin s ppr prae c us e s . J ge ,a M r M a tn' a tonswe e r peae cal ,a blt nt a r nd . ri s c i r e t d, lous nd a a . 55 B. R estt i /D igor ent iuton s gem The r co d co anss tcen e de e oft l s fo Hunt rW ie' a tons3 onl e r nt i ufi i t vi nc he os es r m e s s c i .5 y sxt f ur c t m e s out of 3, t a c t r a e d a pr i durng t r ta a ons i y-o uso r 283 ot l usome s chive ott i hei r ns di t oug Hunt W ie be we n J y 1 2011 a Fe u r 25,2013.Hunt W ie,on t ot r hr h er s t e ul 6, nd br a y er s he he ha be fte gr a l fom t e ta a tons The CFTC s eksr tt i fom Hunt rW ie nd, ne it d e ty r hes r ns c i . e esiuton r e s, M r M a tn,a M r J rf pr m a el c i t r t i c t e s l s s . r i nd . age or oxi t y ausng he e a l us om r ' os e . Unde Se on 6()oft Ad,t Cour i a horze t o de rsiuton.Se 7 U. C. r di c he he t s ut i d o r r ett i e S. j1 a 1 S din 6 alwst eCF t rq s e u tb erme ist na y p ro f u di t e 3 - . e o @) l o h TC o e uet q ia l e d e û n es n o n n h o a ton t ha c mit a vi ai ny i udi . c i o ve om ted ny ol to ' ncl ng' ' ( r tt i t pes who ha s ti l s pr maey ca e by s h A) esiuton o rons ve usaned oses oxi tl us d uc vi ai (nt n olton i he mountofs h l s ) a uc oses; nd ( digor me ofgai rc ve i c B) s ge nt ns e ei d n omwci wih s h vi ai ton t uc olton. 7U. C.j1 1d)3) S. 3a- ( ( . The s t a i a per s ve na ur of Hunt r W i e' f a ne s ia e r tt i not ys em tc nd va i t e e s s r ud ce st t s esiuton onl f t r ti c t r who t sii d t t l s t y s t i d due t Hunt r W ie' y or he ea l usome s e tfe o he os es he usane o e s s s hem e,but f al of Hunt r W i e' cus om e s a w e l H unt r W i e de l pe a s m e t c or l e s s t r s l. e s ve o d che hat f l t di c os m a e i l i or a i a aied o s l e t r a nf m ton bout t com m odii s t a a tons i o w hi r ai he te r ns c i nt ch et l c t r we e e e i usome s r ntrng.Durng t r e nt pe i Hunt W ie a e i ento ly i i he elva rod, er s ctd nt i nal n de i ng t r t l c t er by gene a i a s ndi doc e s t t m i r pr e e a ce vi he e ai us om s r tng nd e ng um nt ha s e es nt d nd om it d i o ton r ar ng Ht e W ie' ma gi tadi ac ount wih t me a sSupple s te nf nna i eg di mtr s s r n r ng c s t he t l ir , t l nsHunt rW ie ofe e t hi rs a 1 pa si ve i t tans c i ,a he oa e s fr d, he gh iks nd ow yout nvol d n he r a tons nd 3 M r M ari and M r J gerat mpt d t ar uet Spe a M oniorM eani Da i s 5 . tn . a te e o g hat cil t l e m en' c l ul i oft l s s whi h t CFTC r le upon t c l a e t r t i c t e s t a a c aton he os e , c he ei d o a cul t he e a l us om r ' ot l l s s w asi or e t Af e r vi w i t e de e and t tm ony,how e ,lfnd t tt os e , nc r c . t r e e ng he vi nc es i ver i ha he CFTC' cacultonsa cur t y r l c t l s ss t i byt r ti c t r . S l ai c ael ete t he os e usaned he ea l usome s 56 Hunt r W i e' ow ne s p of m e a s o t r t i c t e s be f Hunt r W i e over a t e s s r hi t l n he e a l us om r ' hal. e s s w he whol s he e;a c t e ac ount e d no be c eaed wiho Hun e W i e s a ova .l e c m usom r c oul t r t t ut t r s ' ppr l t r c i d t erti c so r 'f n a d d s es d t e d ae s p ois ke p n t mao iy o e eve h eal u t me s u ds n ip re h e lr' r tt, e i g he j rt f t fm ds f is l . W ihout c r c i t m a e i l i or a i r t i c t e s f c d t he t or t e f t or e tng he t r a nf m ton, e a l usom r a e he ce t n l soft m one t y i t d,a ove 90% oft m di i f t l e t rf . rai os he y he nvese nd r he d, n ac , os hei unds The e or lfnd t tr tt i f alr ti c t r l s s i a a oprae r m e r f e, i ha esiuton or 1 ea l usome os e s n ppr i t e dy, f rwhc Hu trW ie Mr M a t a dM r J g ra ej itya sveal la l . o ih n e s , . ri n . a e r on l nd e rly ib e n, C. Cii M one Pe t vl y nal y A l w ih r tt i t CFTC s e a CM P a ns H unt r W i e,M r M ari a M r ong t esiuton, he e ks gai t e s . tn, nd . J ge .TheCour' a hort t i eaCM P c a r ts ut iy o mpos omesfom Se ton 6 d)1,whi pr dest t r ci c( ( ) ch ovi ha a m one a y pe t ii t n t r naly ûn he mount of not mor t n t hi r of $1 000 or ti e t e ha he ghe 00, rpl he monetr gai 'may be i a y n' mpos d f e h vi aton agans any per o f e or ac ol i i t s n ound t vi a e t Ac . o olt he t 7U. C.j 1 - ( ( )A) The $1 000 a S. 3a 1d)1( . 00, mountwasi rasd t $1 000 pe vi ai as nce e o 40, r olton, a j se f rifain. e 1 C. R.j1 38. ed src c u tsi osto o t ecvlpe at d u td o n lto S e 7 F. 4 . Th itit o r' mp iin f h ii n ly m us be t a i l r a e t t of e e c ge ort nee f de e r e. CFFC v fev 541 t d tonaly el t d o he f ns har d he d or t r enc ' r ' . y, F. 11 2,111 ( t Ci. ) 3d 0 2 11h r 2008 . Hunt rW ieenga i awe lt e s ged n l-houghtou s he e t de r ud appr m ael 3, r t i t c m o fa oxi t y 200 e al c t r ,and i r eve $1 48196 13 i pr i due t s e c r s i t r t on l ns usome s t ec i d 8, , 4. n oft o pr ad ha ge , n e es oa Hunt W ie ne rexe ut d,a f e f s r i s Hunt rW ie di no pr de.Se Summ a y er s ve c e nd e s or e vce e s d t ovi e r Exhi t - D e e nt ' Fi nc Tr ns t o w ih Re ai Cus o e s CFTC Ex.69.Be us of bi f nda s na ed a ac i ns t t l tm r, ca e is c t onduc , a CM P i war a ed aga ns Hunt r W i e. The CM P a i t H unt r W i e i t s r nt i t e s ga ns e s s $55, 8 39,whi h r e e st pr tofti e Hunt rW ie' m one a y gai M r M a tn 445,92. c epr s nt he oduc rpl e s s t r n. . ri a dM r J g raej it a ds v r l la l f rteCMP a c n r ligp ro s n . a e r onl n e eal ib e o h y y s o toln es n . 57 C O N CLU SI N O Bas d upon t Cour' fndi s t f t a e he ts i ngs e orh bove, t CFTC has esa ihed by a he t bls pr eponde a of t e de e t t Hunt r W ie,Ha ol Edwa d M a tn,J . and Fr Ja r r nce he vi nc ha e s r d r ri r, ed ge c mitd f a a ai d a a te Ll om te r ud nd de nd be td oydsa t De l rDe enda si de r udi t r t l nd he a e f nt n fa ng he eai c t m e s.Fort s r as uso r he e e ons,J m e i due t be en e e i f voroft CFTC a t Co t udg nt s o tr d n a he s o un s Two,Thr e,a Thite oft Compl i .J e nd re n he ant udgmen wilbe e e e i f vor of t CFTC t l nt r d n a he a i tt Hunt rW ie Def nda sby s pa aeor . ga ns he e s e nt e r t der DONE AND ORDERED i Ch mb r i We tPam Be c , Flrd ,ti Z 6-d y o n a es n s l a h o i a h s * -a f . . M a 201 y, 4. .* .' . .' .' y NALD M . I M DDLEBROOKS UNI TED STATES DI STRI J CT UDGE Copi st e o: Couns lofRec d e or M e ani E.D n i n,Spe i lM onio a Cor a e M a er l e m a ca t r nd por t nag J A . ng,jn os De e nt ohn Ki jpr e f nda Cha wik Hopki s / s De e nt de c ns rr e f nda 58
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