U.S. COMMODITY FUTURES TRADING COMMISSION 

Three Lafayette Centre 

1155 21st Street, NW, Washington, DC 20581 

www.cftc.gov 

Office of Proceedings 

In the Matter of: 

* 

* 

* 

LINDA FAYE HARRIS, * 

CDH FOREX INVESTMENTS, LLC, and * 

CDH GLOBAL HOLDINGS, LLC, * 

Registrants. * 

* 

CFTC Docket No. SD 12-07 

INITIAL DECISION ON DEFAULT 

Before: Philip V. McGuire, 

Judgment Officer 

Appearances: Nathan B. Ploener, Esq., 

Manal Sultan, Esq. 

Background 

CFTC Division ofEnforcement 

New York, New York 

By motion filed November 30, 2012, pursuant to Commission rules 3.60(g) and 10.93, 17 

C.F.R. §§ 3.60(g) and 10.93 (2012), the Commission's Division ofEnforcement has moved for 

entry of a default judgment against CDH Forex Investments, LLC ("CDH Forex"), a commodity 

pool operator and commodity trading advisor, CDH Global Holdings, LLC ("CDH Global"), a 

commodity trading advisor, and Linda Faye Harris ("Harris"), an associated person and the sole 

listed principal with CDH Forex and an associated person and listed principal with CDH Global, 

based on the failure of Harris, CDH Forex and CDH Global to answer or otherwise appear or 

respond to the Notice oflntent to Revoke the Registrations of Harris, CDH Forex, and CDH 
Global ("Notice"), issued by the Commission and filed by the Division on September 11, 2012. 

On September 13, 2012, the Commission's Office of Proceedings served the Notice on Harris, 

CDH Forex and CDH Global at the addresses that they had provided the National Futures 

Association for any communications from the Commission. 1 Thus, Harris, CDH Forex and CDH 

Global were properly served pursuant to CFTC rule 3.502

. Harris, CDH Forex and CDH Global 

have neither responded to the Notice nor responded to the Division's motion. Accordingly, this 

matter is ripe for entry of a default judgment. 

As a result of their defaults, Harris, CDH Forex and CDH Global have waived a hearing 

on all of the issues and are precluded from introducing evidence of mitigation and rehabilitation 

necessary to overcome the presumption of unfitness for registration. In addition, the well-pled 

allegations in the Notice, as supplemented by the proposed findings and conclusions in the 

Division's motion are deemed true and conclusive for purposes of finding: one, that Linda Faye 

Harris, CDH Forex Investments, LLC, and CDH Global Holdings, LLC are statutorily 

disqualified from registration under Sections 8a(2)(C) and (E) of the Commodity Exchange Act 

("Act"), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 

2010, Pub. L. No. 111-203, Title VII (the Wall Street Transparency and Accountability Act of 

2010) ("Dodd-Frank Act"),§§ 701-774 (enacted July 21, 2010), 7 U.S.C. §§ 12a(2)(C) and (E); 

and two, that CDH Forex Investments, LLC is also statutorily disqualified under Section 

1 See Jung registered address ceJtifications, Exhibits 1, 2 and 3, Division's November 301

h motion .. 2 Pursuant to CFTC rule 3.30(a), 17 C.F.R. § 3.30(a) (20 12), the address of each registrant as submitted on its 

application for registration or as submitted on the biographical supplement shall be deemed to be the address for 

delivery to the registrant for any communications from the Commission, including any summons, complaint, notice 

and other written documents or correspondence, unless the registrant specifies another address for this purpose. 

CFTC rule 3.30(b ), 17 C.F.R. § 3.30(b) (2012), provides that each registrant, while registered and for two years after 

the termination ofregistration, must notify the National Futures Association of any change of address, and that 

failure to do so may result in an order of default in any Commission or NF A proceedings. Moreover, pursuant to 

CFTC rule 3.50, 17 C.F.R. § 3.50 (20 12), for purposes of an action for the denial, suspension or revocation of 

registration, service upon a registrant will be sufficient if mailed by registered mail or certified mail return receipt 

requested properly addressed to the registrant at the address shown on his application or any amendment thereto, and 

will be complete upon mailing. 

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8a(2)(H) of the Act, as amended by the Dodd-Frank Act, 7 U.S.C. §§ 12a(2)(H). Thus, as set out 

below: the Division's motion has been granted; Harris, CDH Forex and CDH Global have been 

found to be statutorily disqualified from registration; and the registrations of Harris, CDH Forex 

and CDH Global have been revoked. 

Findings of Fact 

1. CDH Forex Investments, LLC is a Texas limited liability company whose current 

listed address with the Commission is 1011 Suney Lane, Building 200, Flower Mound, Texas, 

75022. CDH Forex has been registered with the Commission as a commodity pool operator 

since September 17, 2008, and as a commodity trading advisor since May 13, 2008, pursuant to 

Section 4m of the Act, 7 U.S.C, § 6m (2012). 

2. CDH Global Holdings, LLC is a Texas limited liability company whose cunent listed 

address with the Commission is also 1011 Surrey Lane, Building 200, Flower Mound, Texas, 

75022. CDH Global has been registered with the Commission as a commodity trading advisor 

since December 1, 2009, pursuant to Section 4m of the Act, 7 U.S.C, § 6m (2012). 

3. Linda Faye BatTis, whose cunent listed address with the Commission is in Lewisville, 

Texas, has been registered as an associated person ofCDH Forex since July 1, 2008. Harris is 

the sole listed principal of, and owns a 10% or more financial interest in, CDH Forex, and Harris 

has the power, directly or indirectly, through agreement or otherwise, to exercise a controlling 

influence over the activities of CDH Forex which are subject to regulation by the Commission. 

From November 30,2009 until on or about August 24,2010, Harris was a listed principal 

ofCDH Global. From December 1, 2009 until August 24, 2010, Banis was registered as an 

associated person of CDH Global. 

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4. On October 25, 2011, the Commission filed a federal civil injunctive action 

against Linda Faye Harris, CDH Forex, CDH Global, as well as Chance Domel Harris who was 

never registered. See CFTC v. CDH Forex Investments, LLC et. a!, Case No. 3:11-cv-02862-F 

(N.D. TX) ("CFTC v. CDH Forex")), which alleged, inter alia, that from August 2008 through 

July 2010, the defendants fraudulently solicited and accepted funds from the general public to 

trade pooled investments and managed accounts in off-exchange forex. As a result of the 

defendants' fraudulent solicitation, individuals invested over $2.2 million, out of which the 

defendants generated substantial trading losses and misappropriated about $353,897 to pay rent 

on the Harris' family home, to make payments on a leased BMW, and to pay credit card bills. 

Defendants also were charged with misrepresenting the profitability of their trading programs in 

their promotional material and issuing false account statements to investors in the pooled account 

in order to perpetuate the fraud. The CFTC complaint also charged Linda Harris with providing 

false, fictitious, or fraudulent statements to the NF A, including falsified trading account 

statements and falsified bank statements, in order to hide the ongoing fraud from the NF A. 

5. Following a hearing held on June 12, 2012, in CFTC v. CDH Forex, the Honorable 

Judge Royal Ferguson of the United States District Court for the Northern District of Texas 

entered an Order for Entry of Default Judgment, Permanent I~unction, Civil Penalties and Other 

Equitable Relief Pursuant to Federal Rule of Civil Procedure 55(b )(2) ("Default Order"). At the 

hearing, Linda Faye Harris appeared and conceded all allegations in the Commission's 

Complaint of violations of the Act, but contested only the amount of the proposed restitution 

award and civil monetary penalty. The Comi found none of her arguments credible and entered 

the Order as submitted by the CFTC. The Default Order contained findings of fact and 

conclusions oflaw, which found, inter alia, that HatTis had fraudulently solicited at least $2.2 

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million from customers out of which total trading losses and misappropriated funds equaled at 

least $1,361,897, and made material false statements to pool participants. 

The Default Order also found that Harris had provided false, fictitious, or fraudulent 

statements to the NF A, including falsified trading account statements and falsified bank 

statements, to hide the ongoing fraud from the NF A. 

The Default Order further found that by engaging in this conduct, Harris had violated 

Sections 4b(a)(2)(A)-(C) and 9(a)(4) ofthe Act, 7 U.S.C. §§ 6b(a)(2)(A)-(C) and 13(a)(4), and 

that such violations ofthe Act had occurred within the course and scope of Harris's employment 

with CDH Forex and CDH Global. Accordingly, the Court: one, found that CDH Forex and 

CDH Global were liable for such violations of Act pursuant to Section 2(a)(l)(B) of the Act, 7 

U.S.C. § 2(a)(l)(B), and Commission rule 1.2, 17 C.F.R. §1.2; and two, permanently enjoined 

Harris, CDH Forex and CDH Global from directly or indirectly committing any further fraud in 

violation of Sections 4b(a)(2)(A)-(C), and 9(a)( 4) of the Act, 7 U.S.C. §§ 6b(a)(2)(A)-(C), and 

13(a)(4). 

6. The Commission filed the Notice on September 11, 2012. On September 13, 2012, 

the Commission's Office of Proceedings properly served, via certified mail return receipt 

requested, the Notice on Harris, CDH Forex and CDH Global at Harris's, CDH Forex's and CDH 

Global's listed addresses with the Commission, and an extra copy to Harris at another Texas 

address which she gave to the Division, in accordance with CFTC rule 3.50, 17 CFR § 3.50 

(2012). The filing deadline for Harris's, CDH Forex's and CDH Global's responses to the 

Notice was October 18,2012. To date, Harris, CDH Forex and CDH Global have failed to 

respond to the Notice. 

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Conclusions of Law 

Section 8a(2)(C) of the Act, as amended by the Dodd-Frank Act, 7 U.S.C. § 12a(2)(C), in 

relevant part, authorizes the Commission to revoke the registration of any person "if such person 

is permanently ... , enjoined by order, judgment, or decree of any comi of competent jurisdiction 

... including an order entered pursuant to an agreement of settlement to which the Commission ... 

is a party, from ... engaging in or continuing any activity when such activity involves ... fraud 

.... " The U.S. District Court for the Nmihem District of Texas is a court of competent 

jurisdiction. 

Section 8a(2)(E) of the Act, as amended by the Dodd-Frank Act, 7 U.S.C. § 12a(2)(E), in 

relevant part, authorizes the Commission to revoke the registration of any person "if such person, 

within ten years preceding the filing of the application [for registration] or any time thereafter, 

has been found in a proceeding brought by the Commission ... , (i) to have violated any provision 

of[the] Act.., where such violation involves ... fraud [or] misappropriation offunds ... " As 

noted above, the U.S. District Court for the Northern District of Texas is a court of competent 

jurisdiction. 

On June 12, 2012, in CFTC v. CDH Forex, the Honorable Judge Royal Ferguson of the 

United States District Court for the Northem District of Texas entered an Order for Entry of 

Default Judgment, Permanent Injunction, Civil Penalties and Other Equitable Relief Pursuant to 

Federal Rule of Civil Procedure 55(b)(2) ("Default Order"). The Default Order: one, found that 

BatTis had violated Sections 4b(a)(2)(A)-(C) and 9(a)(4) ofthe Act, 7 U.S.C. §§ 6b(a)(2)(A)-(C) 

and 13(a)(4), for conduct involving fraud and misappropriation, and that CDH Forex and CDH 

Global were liable for her violations pursuant to Section 2(a)(l)(B) of the Act, 7 U.S.C. 

§ 2(a)(1)(B), and Commission rule 1.2, 17 C.F.R. §1.2; and two, pe1manently enjoined Harris, 

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CDH Forex and CDH Global from directly or indirectly committing any further fraud in 

violation of Sections 4b(a)(2)(A)-(C), and 9(a)(4) of the Act, 7 U.S. C. §§ 6b(a)(2)(A)-(C), and 

13(a)( 4). The Default Order, therefore, constitutes a valid basis for revoking the registrations of 

Harris, CDH Forex and CDH Global, pursuant to Sections 8a(2)(C) and (E) of the Act, as 

amended by the Dodd-Frank Act, 7 U.S. C. §§ 12a(2)(C) and (E). 

Section 8a(2)(H) of the Act, as amended by the Dodd-Frank Act, 7 U.S.C. § 12a(2)(H), in 

relevant part, authorizes the Commission to revoke the registration of any person if "revocation 

of the registration of any principal of such person would be warranted because of a statutory 

disqualification listed in this paragraph," Section 8a(2)(H) of the Act further provides that the 

tetm "principal," as used in Section 8a(2) of the Act, includes a general partner of a partnership 

or a person who owns more than 10% of the voting shares of a corporation. Because Ranis is 

listed with the Commission as CDH Forex's sole principal, owns a more than 10% financial 

interest in CDH Forex, and is subject to the revocation of her registration pursuant to Sections 

8a(2)(C), and (E) of the Act, as amended, CDH Forex's registration is also subject to revocation 

pursuant to Section 8a(2)(H) of the Act, as amended. 

ORDER 

Linda Faye Harris, CDH Forex Investments, LLC, and CDH Global Holdings, LLC are 

statutorily disqualified from registration under Sections 8a(2)(C) and (E) of the Commodity 

Exchange Act. In addition, CDH Forex Investments, LLC is also statutorily disqualified from 

registration under Sections 8a(2)(C), (E) and (H) of the Commodity Exchange Act. 

Accordingly: it is concluded that Linda Faye Harris, CDH Forex Investments, LLC, and CDH 

Global Holdings, LLC are unfit for registration; the Division's motion for entry of a default 

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judgment is hereby granted; and the registrations of Linda Faye Harris, CDH Forex Investments, 

LLC, and CDH Global Holdings, LLC are hereby revoked. 

Dated December 17, 2012. 

iltc!f~ (/~; Judgment Officer 

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