CFTC opposes eFloorTrade’s attempt to convince NY Court to reconsider summary judgment

Maria Nikolova

The CFTC argues that eFloorTrade’s attempt to make the Court reconsider its judgment is totally meritless.

The United States Commodity Futures Trading Commission (CFTC) has opposed a motion by introducing broker eFloorTrade and the firm’s owner John Moore for reconsideration of a summary judgment against the defendants.

Let’s recall that, in September 2016, the CFTC brought a civil enforcement action against eFloorTrade and John Moore, charging them with recordkeeping and supervision failures and charging Moore with making false and misleading statements of material fact, or omitting material facts, in sworn testimony before the CFTC. eFloorTrade, headquartered in Orlando, Florida, is registered with the CFTC as an Introducing Broker, and Moore, also of Orlando, is registered with the CFTC as an Associated Person of eFloorTrade.

In particular, the CFTC Complaint alleges that, from October 2010 to at least October 2015, eFloorTrade failed to keep and produce for inspection full, complete, and systematic records of all transactions relating to its business in dealing in commodity interests. The Complaint further alleges that eFloorTrade failed to prepare a written record of the customer orders that it placed (filled, unfilled, or cancelled) as a result of the trading instructions received. In addition, the Complaint alleges that eFloorTrade failed to keep all emails relating to its business of dealing in commodity interest transactions.

Further, according to the Complaint, on September 18, 2015, Moore knew that certain of his statements to the CFTC while testifying under oath were false and misleading.

On September 21, 2018, this Court granted the CFTC motion for summary judgment as to liability on all four counts charged in its complaint against Moore and eFloorTrade, LLC. On November 12, 2018, the defendants filed their Motion for Reconsideration of the Court’s Order.

On Monday, November 26, 2018, the CFTC submitted its response in opposition to the defendants’ motion at the New York Southern District Court. The regulator says that despite the defendants’ arguments to the contrary, they

  1. do not identify any change in controlling law;

  2. fail to point to the availability of “new” evidence; and

  3. fail to identify a need to correct a clear error.

Accordingly, the CFTC asks the Court to deny the defendants’ motion.

The case is captioned U.S. Commodity Futures Trading Commission v. eFloorTrade, LLC et al (1:16-cv-07544).

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