CFTC in settlement discussions with eFloorTrade

Maria Nikolova

If the discussions are no longer productive, the Commission will seek permission to file a motion for sanctions against eFloorTrade and John Moore.

There has been some development in the case brought by the United States Commodity Futures Trading Commission (CFTC) against introducing broker eFloorTrade and the firm’s owner John Moore. The defendants are charged with recordkeeping and supervision failures. Moore is also charged with making false and misleading statements of material fact in sworn testimony before the CFTC.

In September 2018, Judge Paul G. Gardephe of the New York Southern District Court signed an order for summary judgment against the defendants. The defendants then moved for reconsideration of the SJ Order, the Commission opposed this motion and on February 7, 2019, the Court denied the defendants’ motion for reconsideration. Meanwhile, the parties have engaged in settlement discussions.

In a status update provided to the Court on Thursday, February 28, 2019, the CFTC says the defendants are now requesting additional 45 days to take specific steps to determine whether a settlement can be reached. The Commission has agreed to this request.

Accordingly, the CFTC will advise the Court by April 12, 2019, of the status of the settlement negotiations. If the discussions are no longer productive, the Commission will seek permission to file a motion for sanctions against eFloorTrade and John Moore.

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.

The CFTC seeks relief including disgorgement, civil monetary penalties, trading and registration bans, and permanent injunctions against further violations of the CEA and CFTC Regulations, as charged.

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