UNITED STATES DISTRICT COURT 

SOUTHERN DISTRICT OF NEW YORK 

U.S. COMMODITY FUTURES TRADING 

COMMISSION, 

Plaintiff, 

v. 

JOSEPH F. WELSH III, 

Defendant. 

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cv 01873 

Plaintiff, United States Commodity Futures Trading Commission ("Commission"), by its 

attorneys, alleges as follows: 

I. SUMMARY 

1. From at least June 2006 through May 2008 (the "Relevant Period"), while a 

registered associated person ("AP") ofMF Global, Inc. ("MF Global"), a registered futures 

commission merchant ("FCM"), Defendant Joseph F. Welsh III ("Defendant" or "Welsh") 

attempted to manipulate the prices of palladium and platinum futures contracts traded on the 

New York Mercantile Exchange ("NYMEX"), a division of the CME Group, and a designated 

contract market. 

2. During the Relevant Period, Welsh routinely received market-on-close orders to 

buy palladium and platinum futures contracts from a client. Christopher Louis Pia ("Pia"), then a 

portfolio manager for Moore Capital Management LLC ("Moore Capital"), or from Moore 

Capital execution clerks acting at Pia's direction. Pia wanted to buy palladium and platinum 
futures contracts at high prices during the two minute closing periods of the markets ("Closing 

Period" or "Close") in order to manipulate the prices of the futures contracts during the Closing 

Periods and the settlement prices of the contracts. Welsh understood and believed that Pia 

wanted to buy at high prices to effectuate his manipulative strategy during the Closing Periods. 

3. To effectuate Pia's manipulative strategy, Welsh intentionally devised and 

implemented a trading strategy which would maximize the price impact from his trading on 

behalf of Pia during the Closing Periods of the palladium and platinum futures markets. In order 

to push prices higher, Welsh routinely withheld entering Pia's market-on-c1ose orders until only 

a few seconds remained in the Closing Periods and thereby caused Pia's buy orders to be 

executed on the trading floor within seconds before the end ofthe Closing Periods. Pia's buy 

orders were relatively large orders in the relatively illiquid palladium and platinum futures 

markets. This type of manipulative scheme is commonly known as "banging the close," or 

"marking the close." Welsh implemented this trading strategy with the intent to manipulate 

prices of the palladium and platinum futures contracts during the Closing Periods, and the 

settlement prices of the contracts. 

4. By such conduct, as more fully described below, on at least 12 separate occasions, 

Welsh attempted to manipulate the prices of palladium and platinum futures contracts, including 

the settlement prices, and aided and abetted Pia's attempted manipulations thereof, in violation 

of Sections 6(c), 6(d) and 9(a)(2) of the Act, 7 U.S.C. §§ 9, 13b and 13(a)(2) (2006). 

5. Accordingly, pursuant to Section 6c of the Act, 7 U.S.C. §13a-l (2006), the 

Commission brings this action against Defendant Welsh to enjoin such unlawful acts and 

practices, and to compel compliance with the Act. In addition, the Commission seeks civil 

monetary penalties and such other equitable and ancillary relief, including, but not limited to, 

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trading and registration bans, pre-and post-judgment interest, and such other relief as the Court 

may deem necessary or appropriate. 

6. Unless restrained and enjoined by this Court, there is a reasonable likelihood that 

Defendant Welsh will continue to engage in the acts and practices alleged in this Complaint or in 

similar acts and practices, as more fully described below. 

II. JURISDICTION AND VENUE 

7. This Court has jurisdiction over this action pursuant to Section 6c(a) of the Act, 7 

U.S.C. § 13a-l (2006), which authorizes the Commission to seek injunctive relief against any 

. person, or, to enforce compliance with the Act whenever it shall appear to the Commission that 

such person has engaged, is engaging, or is about to engage in any act or practice constituting a 

violation of any provision of the Act or any rule, regulation or order thereunder. In addition, this 

section authorizes the Commission to bring a civil action in district court to enforce compliance 

with the Act or any rule, regulation or order thereunder. 

8. Venue properly lies with this Court pursuant to Section 6c(e) of the Act, 7 U.S.C. 

§ 13a-l (e) (2006), in that Defendant transacted business in this District, and/or the transactions, 

acts, practices, and courses of business in violation of the Act occurred within this District. 

III. THE PARTIES 

9. Plaintiff U.S. Commodity Futures Trading Commission is an independent 

federal regulatory agency charged by Congress with the administration and enforcement of the 

Act, 7 U.S.C. §§ 1 et seq., and the Commission Regulations promulgated thereunder, 17 C.F.R. 

§§ 1.1 et seq. One of its core responsibilities is to protect the public interest by deterring and 

preventing price manipulations of the commodity markets or futures markets, or other 

disruptions to market integrity. Section 3(b) of the Act, 7 U.S.C. § 5(b) (2000). The 

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Commission maintains its principal office at Three Lafayette Centre, 1155 21 st Street, N.W., 

Washington, D.C. 20581. 

10. Defendant Joseph F. Welsh III is an individual residing in Northport, New 

York. During the Relevant Period, Welsh was an AP ofMF Global, a registered FCM with its 

principal place of business in New York, New York. At all times during the Relevant Period, as . 

an AP of MF Global, Welsh had responsibility for, among other things, entering orders for 

palladium and platinum futures contracts on behalf of Pia. Welsh is presently registered as an 

AP of a registered introducing broker. 

IV. OTHER RELEVANT INDIVIDUAL 

11. Christopher Louis Pia is an individual residing in North Castle, New York. 

During the Relevant Period, Pia served as a portfolio manager of Moore Capital, which was a 

registered commodity trading advisor ("CTA"). Pia was formerly registered as an AP of Moore 

Capital. 

V. FACTS 

The Trading and Settlement of Palladium and Platinum Futures Contracts on NYMEX 

12. During the Relevant Period, including but not limited to the specific dates alleged 

below in Paragraphs 45 and 46, Welsh, on behalf of Pia, entered and caused to be executed 

orders to buy commodity futures contracts in palladium and platinum on the NYMEX, a contract 

market designated by the Commission for trading commodity futures contracts. 

13. A futures contract is an agreement to purchase or sell a commodity for delivery in 

the future at a price that is determined at initiation of the contract. A futures contract obligates 

each party to the contract to fulfill the contract at the specified price. Futures contracts are used 

to assume or shift price risk, and may be satisfied by delivery or offset. 

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14. The NYMEX palladium futures contract trades in units of 100 troy ounces, and 

the price of the contract is quoted in U.S. dollars and cents per ounce. The minimum price 

fluctuation (also known as one "tick") in the NYMEX palladium futures contract is $0.05 (5 

cents) per troy ounce (i.e., $5.00 per contract). 

15. The NYMEX platinum futures contract trades in units of 50 troy ounces, and the 

price of the contract is quoted in U.S. dollars and cents per ounce. The minimum price 

fluctuation (also known as one "tick") in the NYMEX platinum futures contract is $0.10 (10 

cents) per troy ounce (i.e., $5.00 per contract). 

16. Both the NYMEX palladium and platinum futures contracts may be traded on the 

NYMEX trading floor by open outcry trading, with palladium trading from 8:30 a.m. to 1 :00 

p.m. Eastern Standard Time ("EST") and platinum trading from 8:20 a.m. to 1 :05 p.m. EST. 

Both NYMEX palladium and platinum futures contracts also may be traded electronically on 

Globex, the CME's electronic trading platform, Sunday through Friday from 6:00 p.m. to 5:15 

p.m. EST with a 45 minute break between 5: 15 p.m. and 6:00 p.m. EST. 

17. During the Relevant Period, the settlement price of commodity futures contracts 

was the price established by the NYMEX settlement committee at the close of each trading 

session. The settlement price is the official price to be used by the clearinghouse in determining 

net gains or losses, margin requirements, and the next day's price limits. 

18. In accordance with the NYMEX rules and procedures, at all relevant times, the 

settlement prices for palladium and platinum futures contracts for the most active month were 

. derived by the same method: by calculating the volume weighted average of the prices (referred 

to as the VW AP) at which trades were conducted during the Closing Period. The VW AP for 

both palladium and platinum futures contracts included trades executed on the floor of the 

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NYMEX and on Globex. The Closing Period is a two minute period at the end of the trading 

period. For palladium futures contracts, the Closing Period was from 12:58 p.m. to 1 :00 p.m. 

EST. For platinum futures contracts, the Closing Period was from 1 :03 p.m. to 1 :05 p.m. EST. 

19. During the Relevant Period, the palladium and platinum futures contract markets 

were relatively illiquid. For example, on March 5, 2008, total volume in the June 2008 

Palladium futures contract for the trading day was 4,704 contracts, with 140 contracts traded 

during the Closing Period. On March 31, 2008, total volume in the July 2008 Platinum futures 

contract for the trading day was 1,443 contracts, with 158 contracts traded during the Closing 

Period. 

Welsh's Attempts to Manipulate the Prices of Palladium and Platinum Futures Contracts 

20. During the Relevant Period, Welsh had Moore Capital as a client through Pia, a 

former Moore Capital portfolio manager. 

21. Pia became a portfolio manager for Moore Capital in or around June 2006 and 

traded a variety of commodity futures contracts and other instruments on behalf of funds 

managed and operated by Moore Capital or entities related to Moore Capital. 

22. Throughout the Relevant Period, Pia routinely traded palladium and platinum 

futures contracts on NYMEX through Welsh. 

23. During the Relevant Period, Pia intended to manipulate upward the prices of 

palladium and platinum futures contracts through trading during the Closing Periods of these 

contracts in order to manipulate the settlement prices of the futures contracts. 

24. A trader or investor typically wants to buy futures contracts at the lowest prices 

available. Pia communicated to Welsh, and Welsh understood, that Pia wanted to buy platinum 

and palladium futures at high prices. 

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25. To effectuate his manipulative intent, Pia, directly or through one of the Moore 

Capital execution desk clerks, placed with Welsh large buy orders for palladium and platinum 

futures contracts to be executed during the Closing Period. Orders to be executed during the 

Closing Period are commonly known as market-on-close orders. 

26. A market-on-c1ose order (also referred to as an "MOC order") is an order to buy 

or sell at the end of the trading session during the two minute closing period at a price within the 

closing range of prices. 

27. Pia's trading of palladium and platinum futures contracts during the Closing 

Periods accounted for a significant portion of the volume of the palladium and platinum futures 

contracts traded during the Closing Periods. For example, on March 5, 2008, total volume during 

the palladium closing period was 140 June 2008 Palladium contracts and Moore Capital accounted 

for 100 (or 71.428%) of those contracts. On March 31,2008, total volume during the platinum 

closing period was 158 July Platinum contracts and Moore Capital accounted for 100 (or 63.3%) of 

those contracts. 

28. To further effectuate his manipulative intent, Pia often accompanied his large 

MOC buy orders with directions to Welsh to exert upward pressure on the prices of the contracts 

and push up the settlement prices. 

29. Throughout the Relevant Period, Pia, directly or through Moore Capital execution 

clerks, conveyed to Welsh that Pia wanted to push the prices up of palladium and platinum 

futures contracts up, even though Pia was buyer of futures contracts and a buyer of futures 

contracts should want to buy at the lowest price possible. Pia conveyed his desire to push up the 

prices of palladium and platinum futures contracts through numerous instant messages ("IMs") 

or by other means. . 

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30. Pia or his execution clerks used the phrases "moc hard," "bid it up," 'jack it up" 

and other similar phrases to tell Welsh to enter the orders in a manner to exert upward pressure 

on the prices. For example, Pia sent the following IMs to Welsh: 

(a) "buy 100 on the[ e) close .. please jack it up a little u have donr [sic] a poor job oin 

[sic] the closes for me ... "[1M dated June 7, 2006]; 

(b) "u are going to pay up to 305 on 50 palladium on close ... u dion't [sic] have to 

buy em. [I]f it gets close just bid 305 .. u make sre [sic] it settles at 305." [1M dated 

June 20, 2006]; 

(c) "and joe plat is 3x more liquid than pall[adium]. I only like to jack things on 

close. U should have had 3/4 ofplat[inum] doen [sic] before you even started 

pall ... "[IM dated June 20, 2006]; 

(d) "on the close. Try and do a good job ... get it thru trendline [1M dated August 1, 

2006]; 

(e) "buy 50 pah7[Feb. 2007 palladium] on the close[sic] .... and there are some shorts 

u can squeeze make it ugly[ellipsis in original]" [1M dated February 13,2007]; 

(f) "bid it up" [1M dated July 25, 2007]; 

(g) "buy 25 here [before the close] and 25 moc hard" [1M dated November 7,2007]; 

(h) "Buy 50 hard moc ... make it 100 ... make sure it closese [sic] up" [1M dated 

January 18, 2008]; and 

(i) "buy pall[adium] moc hard ... and make it happe[n] bro ... "[IM dated January 24, 

2008). 

31. Throughout the Relevant Period, based on the specific directions given, the 

pattern of Pia's of market-on-close orders and otherwise, Welsh understood that Pia wanted to 

buy at prices at the high end of the closing range when he placed market-on-close buy orders for 

palladium and platinum futures contracts. 

32. Throughout the Relevant Period, Welsh also understood that Pia was entering the 

market-on-close buy orders to push the prices up in order to affect the settlement prices of the 

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futures contracts. In one early 1M exchange dated October 31, 2006, Welsh reminded Pia that 

any trading prior to the close would not count toward determining the settlement price. 

Pia: 

Welsh: 

Pia: 

Welsh: 

Pia: 

U ARE BUYING 50 PWAZ6 HARD ON CLOSE 

ok 

START 1 MINUTE BEFORE 

THEN FINISH UP IN CLOSING RANGE 

the close is 2 minutes long ... 1 minute before will not count 

towards settlement 

it settles on a weighted average 

YEAH I KNOW. BUY 20 BEFORE THE CLOSE. SO PEPOLPE 

[sic] KNOW U ARE IN PLAY THEN 30 IN CLSOING [sic] 

RANGE 

33. In entering and causing Pia's orders to be executed, Welsh intended to manipulate 

the prices of palladium and platinum futures contracts, including the settlement prices of the 

contracts. 

34. Welsh implemented a strategy to enter Pia's market-on-close buy orders for 

execution in a manner designed to exert maximum upward pressure on the prices during the 

Closing Periods and raise the settlement prices of the palladium and platinum future contracts. 

35. During the Relevant Period, the majority of the trades in palladium and platinum 

futures contracts were executed on the electronic trading platform, Globex, rather than the floor 

of the NYMEX. In addition, prices in platinum and palladium futures tended to be higher on the 

floor of the NYMEX than on Globex. 

36. In entering Pia's market-on-close buy orders, Welsh entered the orders for 

execution on the floor of the NYMEX and did not enter the orders for execution on G1obex. 

37. Welsh entered his client's market-on-close orders to the floor through a floor 

clerk who transmitted the orders to a floor broker. Welsh could have executed pia'S market-on9 
close buy orders ratably on both Globex or on the trading floor during the two-minute Closing 

Periods for platinum and palladium in order to attempt to buy at the lowest prices possible. 

38. Instead, Welsh withheld Pia's buy orders until only a few seconds were left in the 

Closing Periods. In numerous recorded audio conversations, the floor clerk counts down the 

seconds remaining in the Closing Periods to allow Welsh to time his entry of Pia's orders. 

39. By entering the buy orders for execution on the trading floor in the last few 

seconds of the Closing Periods, Welsh intended to create upward pressure on the prices of the 

palladium and platinum futures contracts during the Closing Periods. 

40. By entering the buy orders in the last seconds of the Closing Periods, Welsh also 

ensured that floor traders could not offset any trades they had executed opposite Pia's orders 

during the Closing Periods. If the floor traders could have executed offsetting trades during the 

Closing Periods, those prices could have lowered the settlement prices by lowering the volume 

weighted average price at the close of trading for the palladium and platinum futures contract 

markets. 

41. In a recorded conversation between Welsh and a Moore Capital execution clerk 

on March 17,2008, Welsh explained his manipulative trading strategy. According to Welsh, he 

executed the buy orders on the floor of the NYMEX, rather than on Globex, in order to take 

advantage of the wider bid-ask spreads. The bid-ask spread is the difference between the bids to 

buy and the offers to sell. Because the bid-ask spreads were wider on the floor of the NYMEX, 

Welsh knew he would be able to buy at higher prices on the NYMEX floor than ifhe bought on 

Globex. Welsh also explained that he did not want the NYMEX floor traders to be able to offset 

his orders on Globex during the Closing Periods, and thus lower the settlement price. 

Welsh: And, and I buy it on the floor because ... 

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Moore Clerk: Yeah ... 

Welsh: The spreads are so much wider. 

Moore Clerk: Right. 

Welsh: What happens is a lot of times the locals will take us and then go 

and buy it on the screens. So I do it at the very end .... So all those 

screen prints don't count. 

Moore Clerk: So all the screen prints don't count... 

Welsh: So all the lower prints don't count. You know what I mean? 

Moore Clerk: OK ..... 

Moore Clerk: Well, well how do they do it, they do it by a volume-weighted 

average, or? 

Welsh: It's a volume weighted average, yeah ..... Unlike the grains where 

it's just, they take the price, the median, they just take the, the 

middle price. 

42. Other recorded conversations also evidence Welsh's intent to cause Pia's buy 

orders to be executed at the higher prices of the closing range, even though a buyer should want 

to buy at low rather than high prices. For example, on January 24,2008, Welsh had the 

following recorded conversation with the NYMEX floor clerk with respect to his palladium buy 

orders: 

Welsh: Okay, buy a hundred at market.. .. 

Floor Clerk: Did you get (inaudible)? Seven or 8, I don't care. 

Welsh: The higher the better. 

Floor Clerk: I tried to get as high as I could. I'll call you right back. 

In another conversation with the floor clerk after the close of trading in palladium that same day, 

Welsh again stated he wanted higher prices for his client's buy orders even ifit meant that the 

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trading would violate NYMEX rules prohibiting buying at a price higher than the prevailing bidask spread: 

Floor Clerk: High is 6 Yz. 

Welsh: 6-112? 

Floor Clerk: That's the highest I could get it .... 

Welsh: That's bullshit. 

Floor Clerk: I tried. 

Welsh: Fuck those guys. Get in there and tell them fucking 7 1/2s or 

nothing. They don't want to sell it higher? 

Floor Clerk: Violations on orders. 

Welsh: Fuck those guys. Fuck compliance. That's what I do. 

43. Welsh engaged in this pattern of trading market-on-close buy orders during the 

last few seconds of the Closing Periods of the palladium and platinum futures markets on behalf 

of Pia throughout the Relevant Period. 

44. Throughout the Relevant Period, Pia acted with the intent to manipulate the prices 

of palladium and platinum futures contracts, including the prices of the contracts during the 

Closing Periods and the settlement prices of the contracts, and committed overt acts in 

furtherance of such manipulative intent including, without limitation, on the trading days alleged 

below. 

45. Throughout the Relevant Period, Welsh implemented the scheme alleged above 

with the intent to manipulate the prices ofNYMEX palladium futures contracts, including the 

prices of the contracts during the Closing Periods and the settlement prices of the contracts, and 

committed overt acts in furtherance of such manipulative intent, including, without limitation, on 

the following trading days: (1) October 18,2007 for December 2007 Palladium; (2) November 

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13, 2007 for December 2007 Palladium; (3) November 20, 2007 for December 2007 Palladium; 

(4) November 30,2007 for March 2008 Palladium; (5) January 18,2008 for March 2008 

Palladium; (6) January 22, 2008 for March 2008 Palladium; (7) January 24, 2008 for March 

2008 Palladium; (8) February 15, 2008 for March 2008 Palladium; (9) February 29, 2008 for 

June 2008 Palladium; and (10) March 5, 2008 for June 2008 Palladium. 

46. Throughout the Relevant Period, Welsh implemented the scheme alleged above 

with the intent to affect the prices of NY ME X platinum futures contracts and committed overt 

acts in furtherance of such manipulative intent, including, without limitation, on the following 

trading days: (1) December 3, 2007 for January 2008 Platinum; and (2) March 31, 2008 for July 

2008 Platinum. 

VI. VIOLATIONS OF THE COMMODITY EXCHANGE ACT 

Count I 

Welsh Attempted to Manipulate the Prices of Palladium and Platinum Futures 

Contracts in Violation of Sections 6(c), 6(d) and 9(a)(2) of the Act 

47. The allegations contained in paragraphs 1 through 46 above are re-alleged and 

incorporated herein by reference. 

48. Sections 6(c) and 6(d) and 9(a)(2) of the Act, 7 U.S.C. §§ 9, 13b, and 13(a)(2) 

(2006), make it unlawful for any person to attempt to manipulate the market price of any 

commodity in interstate commerce, or for future delivery on or subject to the rules of any 

registered entity, including any contract market. 

49. Throughout the Relevant Period, including but not limited to the specific dates 

alleged above in Paragraphs 45 and 46, Welsh intended to affect the prices of the NYMEX 

palladium and platinum futures contracts and engaged in repeated overt acts in furtherance of 

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that intent. Accordingly, Welsh violated Sections 6(c), 6(d), and 9(a)(2) of the Act, 7 U.S.C. §§ 

9, l3b and 13(a)(2)(2006). 

50. Each and every overt act or transaction engaged in by Welsh in furtherance of the 

intent to affect the prices of the NYMEX palladium and platinum futures contracts including but 

not limited to those specifically alleged herein, is alleged as a separate and distinct violation of 

Sections 6(c) and 6(d) and 9(a)(2) of the Act, 7 U.S.C. §§ 9, 13b, and 13(a)(2) (2006). 

Count II 

Welsh Aided and Abetted Pia's Attempts to Manipulate the Prices of Palladium and 

Platinum Futures Contracts in Violation of Sections 6(c), 6(d) and 9(a)(2) of the Act 

51. The allegations contained in paragraphs 1 through 50 above are re-alleged and 

incorporated herein by reference. 

52. Sections 6(c) and 6(d) and 9(a)(2) of the Act, 7 U.S.C. §§ 9, 13b, and 13(a)(2) 

(2006), make it unlawful for any person to attempt to manipulate the market price of any 

commodity in interstate commerce, or for future delivery on or subject to the rules of any 

registered entity, including any contract market. 

53. As set forth above, during the Relevant Period, including but not limited to the 

specific dates alleged above in Paragraphs 45 and 46, Welsh knowingly associated himself with 

Pia's unlawful venture, namely the violations of Sections 6(c), 6(d), and 9(a)(2) of the Act, 

participated in those violations as something he wished to bring about, and sought by his actions 

to make the unlawful venture succeed. Therefore, pursuant to Section 13(a) of the Act, 7 U.S.C. 

§13c(a) (2006), Welsh willfully aided and abetted Pia's violations of the Act or acted in 

combination or concert with Pia in violation of the Act, and therefore is liable for Pia's violations 

of Sections 6(c), 6(d), and 9(a)(2) of the Act. 

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54. Each and every overt act or transaction engaged in by Welsh in furtherance of the 

intent to affect the prices of the NYMEX platinum and palladium futures contracts, including but 

not limited to those specifically alleged herein, is alleged as a separate and distinct violation of 

Sections 6(c) and 6(d) and 9(a)(2) ofthe Act, 7 U.S.C. §§ 9, l3b, and l3(a)(2) (2006). 

VII. RELIEF REQUESTED 

WHEREFORE, the Commission respectfully requests that this Court, as authorized by 

Section 6c of the Act, 7 U.S.C. § 13a-l (2006), and pursuant to its own equitable powers, enter: 

A. An order finding that Defendant violated Section 6(c), 6(d) and 9(a)(2) of the Act, 

7 U.S.C. §§ 9, 13b, and 13(a)(2) (2006); 

B. An order of permanent injunction restraining and enjoining Defendant and all 

persons insofar as they are acting in the capacity of Defendant's affiliates, agents, servants, 

employees, successors, assigns, attorneys, and all persons insofar as they are acting in active 

concert or participation with Defendant, who receive actual notice of such order by personal 

service or otherwise, from directly or indirectly: 

I. Engaging in conduct in violation of Sections 6(c), 6(d), and 9(a)(2) of the 

Act, as amended by the Food, Conservation and Energy Act of2008, Pub. L. 

No. 110-246, Title XIII (the CFTC Reauthorization Act of2008 ("CRA"», 

§§ 13101-13204, 122 Stat. 1561(Supp. 1112009) and the Dodd-Frank Wall 

Street Reform and Consumer Protection Act of2010 ("Dodd-Frank Act"), 

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

Accountability Act of201O), §§ 701-774, 124 Stat. 1376 (enacted July 

2010) (to be codified at 7 U.S.C. §§ 9, 13b, and 13(a)(2»; 

15 
2. Trading on or subject to the rules of any registered entity (as that term is 

defined in Section la(40) of the Act, as amended by the CRA and the 

Dodd-Frank Act (to be codified at 7 U.S.C. § l(a)(40»; 

3. Entering into any transactions involving commodity futures, options on 

commodity futures, commodity options (as that term is defined in 

Regulation 1.3(hb), 17 C.F .R. § 1.3(hb)(20 11) ("commodity options"). 

security futures products, and/or foreign currency (as described in Sections 

2(c)(2)(B) and 2(c)(2)(C)(i) of the Act, as amended by the CRA, 7 U.S.C. §§ 

2(c)(2)(B) and 2(c)(2)(C)(i)) (Supp. III 2009) ("forex contracts"), for his 

own personal or proprietary account or for any account in which he has a 

direct or indirect interest; 

4. Having any commodity futures, options on commodity futures, commodity 

options, security futures products, anellor forex contracts traded on his 

behalf; 

5. Controlling or directing the trading for or on behalf of any other person or 

entity, whether by power of attorney of otherwise, in any account 

involving commodity futures, options on commodity futures, commodity 

options, security futures products, anellor forex contracts; 

6. Soliciting, receiving, or accepting any funds from any person for the 

purpose of purchasing or selling any commodity futures, options on 

commodity futures, commodity options, security futures products, anellor 

forex contracts; 

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7. Applying for registration or claiming exemption from registration with the 

Commission in any capacity, and engaging in any activity requiring such 

registration or exemption from registration with the Commission, except 

as provided for in Regulation 4.14(a)(9), 17 C.F. R. §4.14(a)(9); 

8. Acting as a principal (as that tenn is defined in Regulation 3.1 (a), 17 C.F.R. 

§ 3.1(a), agent or any other officer or employee of any person (as the tenn 

"person" is defined in Section la(38) of the Act, as amended by the eRA 

and the Dodd-Frank Act (to be codified at 7 V.S.C. §la(38» registered, 

exempted from registration or required to be registered with the 

Commission, except as provided for in Regulation 4. 14(a)(9), 17 C.F. R. 

§4.l4(a)(9); 

C. An order directing Defendant to pay civil monetary penalties, to be assessed by . 

the Court, in amounts not to exceed $130,000 for each violation for each violation of the Act and 

Regulations occurring before October 22, 2008, or triple the monetary gain to him for each 

violation of the Act, as described herein, plus post-judgment interest; 

D. An order directing Defendant to pay costs and fees as permitted by 28 U.S.C. § 

1920 (2006) and 28 U.S.C. § 2412(a)(2) (2006); and 

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E. Such other and further relief as the Court deems necessary and appropriate under 

the circumstances. 

Dated: March 14,2012 

Respectfully submitted, 

AITORNEYS FOR PLAINTIFF U.S. 

COMMODITY FUTURES TRADING 

COMMISSION 

- 'U-?'f./ 

~ me M. Gargiulo, Tnal Atto 

/ 140 Broadway, 191h Floor 

New York, NY 10005 

(646) 746-9730 

jgargiulo@cftc.gov 

Michael Solinsky (pro hac vice motion to be filed) 

msolinsky@cftc.gov 

Chief Trial Attorney 

James A. Garcia (pro hac vice motion to be filed) 

jgarcia@cftc.gov 

August A. Imholtz III (pro hac vice motion to be filed) 

aimholtz@cftc.gov 

Kassra Goudarzi (pro hac vice motion to be filed) 

kgourdarzi@cftc.gov 

Senior Trial Attorneys 

Gretchen L. Lowe, Associate Director 

glowe@cftc.gov 

U.S. Commodity Futures Trading Commission 

Division of Enforcement 

11552151 Street, N.W. 

Washington, D.C. 20581 

(202) 418-5384 (Solinsky) 

(202) 418-5362 (Garcia) 

(202) 418-5140 (Imholtz) 

(202) 418-5416 (Goudarzi) 

(202) 418-5523 (facsimile) 

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