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No. 27-99 June 25, 1999 |
Weekly Advisory
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On June 29-30, 1999, Commissioner Barbara P. Holum will attend the Sixth International Derivatives Conference sponsored jointly by the Futures Industry Association Inc., and the Futures and Options Association to be held in London, England. Commissioner Holum will participate in the session: "International Cross-Border Access: Promises and Problems."
On June 18, 1999, the Commission held a
closed meeting to discuss surveillance matters.
On June 25, 1999, the Commission will
hold a closed meeting to discuss surveillance matters.
On June 28, 1999, the Commission will
hold a closed meeting to discuss adjudicatory matters.
Release:
#4279-99
For Release:
June 21, 1999
THOMAS J. ERICKSON SWORN IN AS CFTC COMMISSIONER
Washington -- Thomas J. Erickson was sworn in today as
a Commissioner of the Commodity Futures Trading Commission (CFTC), the
federal agency that regulates commodity futures and option trading in the
United States.
The oath of office was administered by CFTC Acting Chairman David D.
Spears in a ceremony attended by CFTC Commissioners and senior staff. Mr.
Erickson was nominated by President Clinton on February 5, 1999, and
confirmed by the Senate on June 17, 1999, to a term expiring April,
2003.
A native of Sioux Falls, South Dakota, Mr. Erickson received his B.A.
degree in Government and International Affairs from Augustana College in
1984 and his Juris Doctor degree from the University of South Dakota
School of Law in 1987. Mr. Erickson is a member of the State Bar of South
Dakota and of the District of Columbia Bar.
After graduating from law school, Mr. Erickson served as Legislative
Assistant to United States Senator Thomas A. Daschle. Prior to joining
the CFTC in September 1997 as the Director, Office of Legislative &
Intergovernmental Affairs, Mr. Erickson served as Assistant to the
President/Legal Counsel at the National Grain Trade Council (NGTC). As
Legal Counsel to the NGTC, Mr. Erickson represented the grain trade and
futures markets on matters of agricultural policy, futures trading,
international trade, grain quality, and tax issues.
No Opinions Updates were issued during this period.
No Seriatim Actions were taken during this period.
The Commission has withdrawn proposed rules it issued on March 24, 1999.
The proposed rules would have permitted the use in the United States of
automated trading system to provide access to foreign electronic boards
of trade. Vol. 64, No. 117, 06/18/99, p. 32829.
The Chicago Mercantile Exchange applied for designation as a contract
market in degree days index futures and option contracts representing the
following 10 cities: Atlanta, GA; Chicago, IL; Cincinnati, OH; Dallas,
TX; Des Moines, IA; Las Vegas, NV; New York, NY; Philadelphia, PA;
Portland, OR; and Tucson, AZ. Vol. 64, No. 120, 06/23/99, p. 33472.
NOTE:
All Comment Letters must be received by the Commission no later than the closing date specified in the applicable Federal Register release. Any requests for an extension of the comment period must be made in writing - - before the expiration of the comment period - - to the Commission's Office of the Secretariat.
Comment period concerning the Chicago Mercantile Exchange's
application to trade futures and options on three-month Eurodollar FRAs
(forward rate agreements) ends, July 24, 1999.
Comment period concerning the Chicago Mercantile Exchange's
application to trade futures and options contracts on degree days indexes
representing the following 10 cities: Atlanta, GA; Chicago, IL;
Cincinnati, OH; Dallas, TX; Des Moines, IA; Las Vegas, NV; New York, NY;
Philadelphia, PA; Portland, OR; and Tucson, AZ ends, July 23,
1999.
Paul Lee v. Peregrine Financial Group, Inc. Filed June
16, 1999. After a careful review of the record, it was concluded that
complainant Lee had failed to establish any violations by Peregrine. It
was also concluded that, in the absence of any restraining order,
Lee's status as owner of the account entitled him to a return of the
account balance, less the award of attorneys fees. Accordingly, the
complaint against Peregrine was dismissed and Paul Lee was ordered to pay
Peregrine Financial Group $4,884 for attorneys fees and costs incurred in
defending against Lee's vexatious conduct. Peregrine may deduct this
amount from the cash balance in Lee's account, before returning the
remainder of the account balance to Lee. Philip V. McGuire, Judgment
Officer. CFTC Docket No. 98-R127.
Stephen Malin v. Richard Charles Bassin and Thomas Paul
Wayne. Filed January 17, 1999. The Court received the
parties' stipulation of dismissal for this proceeding. Accordingly,
the complaint was dismissed, and the proceeding was terminated in its
entirety. Administrative Law Judge, Bruce C. Levine. CFTC Docket No.
99-R010.
Michael Casey and Ann E. Warkentin v. FSG International, Inc.,
Alfred Louis Gladstone and Jeffrey Lee Rubin. Filed June 17,
1999. All issues in this matter were resolved. Accordingly, the matter
was dismissed with prejudice. Administrative Law Judge, George H.
Painter. CFTC Docket No. 99-R028.
Barry J. Wolf v. Alaron Trading Corp., Steven Alan Greenberg and
Barry Scott Isaacson. Filed June 17, 1999. The Court received
the parties stipulation of dismissal of this proceeding. Accordingly, the
complaint was dismissed with prejudice and the proceeding was terminated
in its entirety. Administrative Law Judge, Bruce C. Levine. CFTC Docket
No. 99-R089.
Barbara Diane Arnold v. Ronald Allen Bohlman and First American
Discount Corporation. Filed June 18, 1999. The parties settled
this matter. Accordingly, the proceeding was dismissed. Joel R. Maillie,
Judgment Officer. CFTC Docket No. 99-R081.
William E. Peveto and Elizabeth Peveto v. First Western
Commodities and Futures, Ltd., LIT Division of First Options and Mark
Anthony Stirek. Filed June 18, 1999. After a careful review of
the record, it was concluded that the complainants had failed to prove,
by a preponderance of the evidence, that they had sustained any monetary
damages by reason of unlawful conduct on the part of respondents.
Accordingly, this matter was dismissed with prejudice. Administrative Law
Judge, George H. Painter. CFTC Docket No. 98-R076.
Bernard and Naomi Goldsmith v. American Futures Group, Inc., and
Martin Amtman. Filed June 22, 1999. Because there was no
remaining dispute except for compliance with the parties' settlement
agreement, there was no need to keep this case on the active docket.
Accordingly, the proceeding was dismissed. Joel R. Maillie, Judgment
Officer. CFTC Docket No. 97-R103.
Robert V. Westman and Rhonda L. Westman v. Alaron Trading
Corporation and Green Street Discount. Filed June 22, 1999. The
parties settled their dispute and filed papers showing that the
settlement terms were fulfilled. Accordingly, the proceeding was
dismissed. Joel R. Maillie, Judgment Officer. CFTC Docket No.
98-R156.
In the Matter of Global Link Miami Corporation, Leung Ka Shung
a/k/a Stephen Laing, Grant Lawton and King Keung Chan a/k/a Eddy Chan
a/k/a King Chan. Filed June 21, 1999. The Division of
Enforcement appealed from an order of the ALJ dismissing its complaint
against Global Link Miami Corporation and others who were charged with
fraud and operating a foreign currency bucket shop to the detriment of
customers. Although none of the respondents answered the complaint, the
ALJ denied the Division's motion for a default judgement in its
favor, ruling instead that the Commission lacked subject matter
jurisdiction under the CEAct, to entertain the complaint. After a careful
review of the record, the Commission found that it had subject matter
jurisdiction to hear and decide this case. The Commission held that all
of the respondents were liable on default for violating section 4(a) of
the CEAct (executing commodity futures transactions other than on a
designated contract market); that respondents Global Link, Lawton and
Leung were liable on default for violating section 4b(a)(i) (fraud in
connection with the offer and sale of commodity futures contracts); and
that respondents Global Link, Leung and Chan were liable on default for
violating section 4b(a)(iv) (bucketing customer orders). As to sanctions,
the Commission found that the nature of the respondents' misconduct
was exceedingly grave in that they violated core provisions of the CEAct
with a view to undermining the fundamental regulatory regime established
by Congress for futures trading. The customers who were victims of the
respondents' misconduct lost most or all of their investments.
Accordingly, each named respondent -- Global Link, Leung, Lawton, and
Chan -- were ordered to cease and desist from further violations of the
CEAct. In addition, they were permanently prohibited from trading on any
contract market and were each ordered to pay a civil monetary penalty of
$100,000. CFTC Docket No. 98-1.
No CFTC Letters were issued during this period.