U.S. Commodity Futures Trading Commission v. Southern Trust Metals, Inc., No. 16-16544 (11th Cir. 2018)Annotate this Case
The Eleventh Circuit vacated its original opinion in this case and issued the following opinion in its place.
The CFTC begain investigating defendants in response to a customer's complaint of commodities fraud. The NFA also opened an investigation, which proceeded in tandem with the CFTC's, but ended in a settlement. The CFTC then filed suit alleging that defendants violated the Commodities Exchange Act (CEA) when they failed to register as futures commission merchants, transacted the purchase and sale of contracts for the future delivery of a commodity (futures) outside of a registered exchange, and promised to invest customers' money in
precious metals (metals) but instead invested the funds in so-called "off-exchange margined metals derivatives" (metals derivatives). The court affirmed the district court's judgment except as to the restitution award for the group of investors whose losses were associated solely with the registration violations. In regard to the restitution award, the court vacated and remanded with instructions to consider other equitable remedies.
This opinion or order relates to an opinion or order originally issued on January 22, 2018.