UNITED STATES OF AMERICA 

Before the 

COMMODITY FUTURES TRADING COMMISSION 

In the Matter of: 

Jason Gospodarek and 

Quantum Financial Network, 

LLC, 

Respondents.

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CFTC Docket No. 22-37

ORDER INSTITUTING PROCEEDINGS PURSUANT TO 

SECTION 6(c) AND (d) OF THE COMMODITY EXCHANGE ACT, MAKING 

FINDINGS, AND IMPOSING REMEDIAL SANCTIONS

I. INTRODUCTION

The Commodity Futures Trading Commission (“Commission”) has reason to believe that 

between July 2017 and January 2019 (“Relevant Period”), Jason Gospodarek (“Gospodarek”) 

and Quantum Financial Network, LLC (“Quantum Financial”) (together, “Respondents”) 

violated Section 4d(g) of the Commodity Exchange Act (“Act”), 7 U.S.C. § 6d(g), and 

Gospodarek violated Section 4k(3) of the Act, 7 U.S.C. § 6k(3). Therefore, the Commission 

deems it appropriate and in the public interest that public administrative proceedings be, and 

hereby are, instituted to determine whether Respondents engaged in the violations set forth 

herein and to determine whether any order should be issued imposing remedial sanctions. 

In anticipation of the institution of an administrative proceeding, Respondents have 

submitted an Offer of Settlement (“Offer”), which the Commission has determined to accept. 

Without admitting or denying any of the findings or conclusions herein, Respondents consent to 

the entry of this Order Instituting Proceedings Pursuant to Section 6(c) and (d) of the Commodity 

Exchange Act, Making Findings, and Imposing Remedial Sanctions (“Order”) and acknowledge 

service of this Order.1

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 Respondents consent to the use of the findings of fact and conclusions of law in this Order in this proceeding and 

in any other proceeding brought by the Commission or to which the Commission is a party or claimant, and agree 

that they shall be taken as true and correct and be given preclusive effect therein, without further proof. 

Respondents do not consent, however, to the use of this Order, or the findings or conclusions herein, as the sole 

basis for any other proceeding brought by the Commission or to which the Commission is a party or claimant, other 

than: a proceeding in bankruptcy or receivership; or a proceeding to enforce the terms of this Order. Respondents 

do not consent to the use of the Offer or this Order, or the findings or conclusions in this Order, by any other party in 

any other proceeding.
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II. FINDINGS 

The Commission finds the following: 

A. Summary 

During the Relevant Period, Quantum Financial acted as an Introducing Broker (“IB”) on 

behalf of two overseas, leveraged foreign currency and leveraged precious metals trading 

platforms, Trading Platform One and Trading Platform Two (collectively, “the Trading 

Platforms”). In so doing, Quantum Financial introduced eight commodity pools comprised of 

U.S. retail customers to the Trading Platforms. Quantum Financial was not registered with the 

Commission as an IB. Thus, Quantum Financial’s conduct violated Section 4d(g) of the Act, 7 

U.S.C. § 6d(g). As the controlling person of Quantum Financial, Gospodarek is liable for 

Quantum Financial’s violations of Section 4d(g) pursuant to Section 13c(b) of the Act, 7 U.S.C. 

§ 13c(b). 

Further, during the Relevant Period, Gospodarek, without being registered with the 

Commission, acted as an associated person (“AP”) of a commodity trading advisor (“CTA”) to 

these same customers. Gospodarek thus violated Section 4k(3) of the Act, 7 U.S.C. § 6k(3). 

******** 

In accepting the Offer, the Commission recognizes Respondents’ substantial cooperation 

with the Commission’s Division of Enforcement. The Commission notes that Respondents’ 

substantial cooperation is reflected in the form of a substantially reduced civil monetary penalty. 

B. Respondents 

Jason Gospodarek is a resident of Wisconsin. Gospodarek has never been registered 

with the Commission. 

Quantum Financial Network, LLC is a company registered by Gospodarek in 

Wisconsin. Gospodarek is Quantum Financial’s principal and sole employee. Quantum 

Financial has never been registered with the Commission. 

C. Facts 

During the Relevant Period, Quantum Financial introduced eight commodity pools, 

comprising more than 150 U.S. retail customers to the Trading Platforms for purposes of trading 

in forex and metals on a leveraged basis.2

 In soliciting and introducing for Trading Platform 

One, Quantum Financial had an arrangement under which as compensation for acting as an agent 

of the platform in introducing the pools, it was provided with a funded account with which to 

trade on the platform. Similarly, in soliciting and introducing for Trading Platform Two, 

Quantum Financial entered into an agreement to act as an agent to introduce the pools to the 

platform. Quantum Financial was compensated through a mark-up of each round-trip trade 

made on behalf of the pools. Under this latter arrangement, Quantum Financial received seven 

 

2

 Neither the pools nor any of the pool participants were eligible contract participants (“ECP”) within the meaning 

of Section 1a(18) of the Act, 7 U.S.C. § 1a(18). Additionally, there was no actual delivery of the forex or metals. 
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payments from Trading Platform Two during the Relevant Period totaling approximately 

$185,789, approximately half of which Quantum Financial transferred to an individual and entity 

(collectively, “the CTA”) together acting as a CTA to the pools. During the Relevant Period, 

Gospodarek was Quantum Financial’s principal and sole employee, and controlled all of its 

activity. 

Concurrent with this activity, Gospodarek as the CTA’s “forex expert” assisted the CTA 

who for compensation or profit, advised customers as to the value or advisability of trading in 

forex and leveraged precious metals including recommending to clients that the commodity 

pools were an appropriate investment and, once they were pool participants, that they should 

remain invested in the pools. Specifically, Gospodarek: (i) assisted the CTA in soliciting 

customers and in engaging in the business of advising customers as to the advisability of trading 

in forex and leveraged precious metals through Gospodarek’s webinar appearances, videos, and 

responding to individual customer questions; and (ii) identified and formulated manual and 

algorithmic forex and leveraged metals trading strategies that he promoted to customers through 

his webinar appearances, videos, and responses to individual customer questions on behalf of the 

CTA. In total, customers invested approximately $2.7 million with the commodity pools. 

III. LEGAL DISCUSSION 

The Act’s registration requirements for certain commodity professionals are the 

cornerstone of the regulatory framework enacted by Congress to protect the public. 

“‘Registration is the kingpin in . . [the Commission’s] statutory machinery giving the 

Commission the information about participants in commodity trading which it so vitally requires 

to carry out its other statutory functions of monitoring and enforcing the Act.” Flaxman v. 

CFTC, 697 F.2d 782, 787 (7th Cir. 1983) (quoting CFTC v. British Am. Commodity Options 

Corp., 560 F.2d 135, 139-40 (2d Cir. 1977). Failure to register with the Commission is a serious 

offense, and not a mere technical violation of the Act. See British Am. Commodity Options 

Corp., 560 F.2d at 139-40. 

A. Respondents Violated Section 4d(g) of the Act 

Section 4d(g) of the Act, 7 U.S.C. § 6d(g), makes it unlawful to act as an IB unless 

registered with the Commission. 

Section 1a(31) of the Act, 7 U.S.C. § 1a(31), in relevant part defines an IB as any person 

“who—(I) is engaged in soliciting or in accepting orders for—. . . (bb) any agreement, contract, 

or transaction described in section 2(c)(2)(C)(i) or section 2(c)(2)(D)(i) [of the Act] . . . and (II) 

does not accept any money, securities, or property (or extend credit in lieu thereof) to margin, 

guarantee, or secure any trades or contracts that result or may result therefrom.” 

Section 2(c)(2)(C)(i)(I) of the Act, 7 U.S.C. § 2(c)(2)(C)(i)(I), in relevant part, applies to 

any agreement, contract, or transaction, in foreign currency that is offered to, or entered into 

with, a person that is not an ECP “on a leveraged or margined basis, or financed by the offeror, 

the counterparty, or a person acting in concert with the offeror or counterparty on a similar 

basis,” subject to certain exceptions not applicable here. Section 2(c)(2)(D)(i) of the Act, 7 

U.S.C. § 2(c)(2)(D)(i), applies to “any agreement, contract, or transaction in any commodity” 
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that is entered into with, or offered to (even if not entered into with), a non-ECP “on a leveraged 

or margined basis, or financed by the offeror, the counterparty, or a person acting in concert with 

the offeror or counterparty on a similar basis,” subject to certain exceptions not applicable here. 

 During the Relevant Period, without being registered as an IB, Quantum Financial acted 

as an IB by soliciting orders from the commodity pools for forex and leveraged precious metals 

transactions as defined by Sections 2(c)(2)(C)(i) and 2(c)(2)(D)(i) of the Act, respectively. 

Neither the pools or any of their participants were ECPs. Thus, Quantum Financial violated 

Section 4d(g) of the Act. During the Relevant Period, Gospodarek controlled Quantum Financial 

and did not act in good faith or knowingly induced directly, or indirectly, the acts constituting its 

violations. Thus, pursuant to Section 13c(b) of the Act, 7 U.S.C. § 13c(b), Gospodarek, as the 

controlling person of Quantum Financial, is liable for its violations of Section 4d(g). 

B. Gospodarek Violated Section 4k(3) of the Act 

 

Section 4k(3) of the Act, 7 U.S.C. § 6k(3), states, in relevant part and with certain 

specified exceptions and exemptions not applicable here: “It shall be unlawful for any person to 

be associated with a commodity trading advisor as a partner, officer, employee, consultant, or 

agent (or any person occupying a similar status or performing similar functions), in any capacity 

which involves (i) the solicitation of a client’s or prospective client’s discretionary account . . . 

unless such person is registered with the Commission . . . .” 

Commission Regulation (“Regulation”) 1.3, 17 C.F.R. § 1.3 (2022), in relevant part 

defines an AP of a CTA as any natural person who is associated with “A commodity trading 

advisor as a partner, officer, employee, consultant, or agent (or any natural person occupying a 

similar status or performing similar functions), in any capacity which involves: (i) The 

solicitation of a client’s or prospective client's discretionary account . . . .” 

During the Relevant Period, without being registered as an AP, Gospodarek acted as an 

AP of a CTA, when, acting as an agent of the CTA he solicited the pools to trade leveraged forex 

and leveraged precious metals in discretionary accounts. See United States v. Aldridge, 642 F.3d 

537, 541 (7th Cir. 2011) (defining agency under the Restatement (Third) of Agency as “‘the 

fiduciary relationship that arises when one person (a ‘principal’) manifests assent to another 

person (an ‘agent’) that the agent shall act on the principal’s behalf and subject to the principal’s 

control, and the agent manifests assent or otherwise consents so to act.’”). None of the 

discretionary account customers was an ECP. Accordingly, Gospodarek violated Section 4k(3) 

of the Act. 
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IV. FINDINGS OF VIOLATION 

Based on the foregoing, the Commission finds that, during the Relevant Period, 

Respondents violated Section 4d(g) of the Act, 7 U.S.C. § 6d(g), and that Gospodarek violated 

Section 4k(3) of the Act, 7 U.S.C. § 6k(3). 

V. OFFER OF SETTLEMENT 

Respondents have submitted the Offer in which they, without admitting or denying the 

findings and conclusions herein: 

A. Acknowledge service of this Order; 

B. Admit the jurisdiction of the Commission with respect to all matters set forth in this 

Order and for any action or proceeding brought or authorized by the Commission based 

on violation of or enforcement of this Order; 

C. Waive: 

1. The filing and service of a complaint and notice of hearing; 

2. A hearing; 

3. All post-hearing procedures; 

4. Judicial review by any court; 

5. Any and all objections to the participation by any member of the Commission’s 

staff in the Commission’s consideration of the Offer; 

6. Any and all claims that they may possess under the Equal Access to Justice Act, 

5 U.S.C. § 504, and 28 U.S.C. § 2412, and/or the rules promulgated by the 

Commission in conformity therewith, Part 148 of the Regulations, 17 C.F.R. 

pt. 148, relating to, or arising from, this proceeding; 

7. Any and all claims that they may possess under the Small Business Regulatory 

Enforcement Fairness Act of 1996, Pub. L. No. 104-121, tit. II, §§ 201–53, 

110 Stat. 847, 857–74 (codified as amended at 28 U.S.C. § 2412 and in scattered 

sections of 5 U.S.C. and 15 U.S.C.), relating to, or arising from, this proceeding; 

and 

8. Any claims of Double Jeopardy based on the institution of this proceeding or the 

entry in this proceeding of any order imposing a civil monetary penalty or any 

other relief, including this Order; 

D. Stipulate that the record basis on which this Order is entered shall consist solely of the 

findings contained in this Order to which Respondents have consented in the Offer; and 
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E. Consent, solely on the basis of the Offer, to the Commission’s entry of this Order that: 

1. Makes findings by the Commission that Respondents violated Section 4d(g) of the 

Act, 7 U.S.C. § 6d(g); 

2. Makes findings by the Commission that Gospodarek violated Section 4k(3) of the 

Act, 7 U.S.C. § 6k(3); 

3. Orders Respondents to cease and desist from violating Section 4d(g) of the Act; 

4. Orders Gospodarek to cease and desist from violating Section 4k(3) of the Act; 

5. Orders Respondents to pay a civil monetary penalty in the amount of one hundred 

thousand dollars ($100,000), plus any post-judgment interest within thirty days of 

the date of entry of this Order; and 

6. Orders Respondents to comply with the conditions and undertakings consented to 

in the Offer and as set forth in Part VI of this Order. 

Upon consideration, the Commission has determined to accept the Offer. 

VI. ORDER 

Accordingly, IT IS HEREBY ORDERED THAT: 

A. Respondents shall cease and desist from violating Section 4d(g) of the Act, 7 U.S.C. 

§ 6d(g). 

B. Gospodarek shall cease and desist from violating Section 4k(3) of the Act, 7 U.S.C. 

§ 6k(3). 

C. Respondents shall pay, jointly and severally, a civil monetary penalty in the amount of 

one hundred thousand dollars ($100,000) (“CMP Obligation”), within thirty days of the 

date of the entry of this Order. If the CMP Obligation is not paid in full within thirty 

days of the date of entry of this Order, then post-judgment interest shall accrue on the 

unpaid portion of the CMP Obligation beginning on the date of entry of this Order and 

shall be determined by using the Treasury Bill rate prevailing on the date of entry of this 

Order pursuant to 28 U.S.C. § 1961. 

Respondents shall pay the CMP Obligation and any post-judgment interest by electronic 

funds transfer, U.S. postal money order, certified check, bank cashier’s check, or bank 

money order. If payment is to be made other than by electronic funds transfer, then the 

payment shall be made payable to the Commodity Futures Trading Commission and sent 

to the address below: 

MMAC/ESC/AMK326 

Commodity Futures Trading Commission 

Division of Enforcement 
7 

6500 S. MacArthur Blvd. 

HQ Room 181 

Oklahoma City, OK 73169 

(405) 954-6569 office 

(405) 954-1620 facsimile 

9-AMC-AR-CFTC@faa.gov 

If payment is to be made by electronic funds transfer, Respondents shall contact Tonia 

King or her successor at the above address to receive payment instructions and shall fully 

comply with those instructions. Respondents shall accompany payment of the CMP 

Obligation with a cover letter that identifies the Respondents and the name and docket 

number of this proceeding. Respondents shall simultaneously transmit copies of the 

cover letter and the form of payment to the Chief Financial Officer, Commodity Futures 

Trading Commission, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 

20581, and to Harry E. Wedewer, Three Lafayette Centre, Commodity Futures Trading 

Commission, 1155 21st Street, N.W., Washington, D.C. 20581. 

D. Respondents shall comply with the following conditions and undertakings set forth in the 

Offer: 

1. Public Statements: Respondents agree that neither they nor any of their agents or 

employees under their authority or control shall take any action or make any 

public statement denying, directly or indirectly, any findings or conclusions in 

this Order or creating, or tending to create, the impression that this Order is 

without a factual basis; provided, however, that nothing in this provision shall 

affect Respondents’: (i) testimonial obligations; or (ii) right to take legal positions 

in other proceedings to which the Commission is not a party. Respondents shall 

comply with this agreement, and shall undertake all steps necessary to ensure that 

all of their agents and/or employees under their authority or control understand 

and comply with this agreement. 

2. Disgorgement: Respondents agree to pay, jointly and severally, disgorgement in 

the amount of ninety-two thousand eight hundred ninety four dollars and eightyfive cents ($92,894.85) (“Disgorgement Obligation”), representing gains received 

in connection with violations of Section 4d(g) of the Act, within thirty days of the 

date of the entry of this Order. If the Disgorgement Obligation is not paid in full 

within thirty days of the date of entry of this Order, then post-judgment interest 

shall accrue on the unpaid portion of the Disgorgement Obligation beginning on 

the date of entry of this Order and shall be determined by using the Treasury Bill 

rate prevailing on the date of entry of this Order pursuant to 28 U.S.C. § 1961. 

To effect payment by Respondents of the Disgorgement Obligation and the 

distribution of disgorgement to Respondents’ clients, the Commission appoints 

the National Futures Association as “Monitor.” The Monitor shall receive 

payments of the Disgorgement Obligation and any post-judgment interest from 

Respondents and make distributions as set forth below. Because the Monitor is 

not being specially compensated for these services, and these services are outside 
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the normal duties of the Monitor, it shall not be liable for any action or inaction 

arising from its appointment as Monitor other than actions involving fraud. 

Respondents shall make their payments of the Disgorgement Obligation and any 

post-judgment interest under this Order in the name of the “Quantum Financial 

Settlement Fund” and shall send such payments by electronic funds transfer, or 

U.S. postal money order, certified check, bank cashier’s check, or bank money 

order to the Office of Administration, National Futures Association, 300 South 

Riverside Plaza, Suite 1800, Chicago, Illinois 60606, under a cover letter that 

identifies the paying Respondents and the name and docket number of this 

proceeding. The paying Respondents shall simultaneously transmit copies of the 

cover letter and the form of payment to the Chief Financial Officer, Commodity 

Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, N.W., 

Washington, D.C. 20581. 

The Monitor shall oversee Respondents’ Disgorgement Obligation and shall have 

the discretion to determine the manner of distribution of funds in an equitable 

fashion to the Respondents’ clients or may defer distribution until such time as the 

Monitor may deem appropriate. In the event that the amount of payments of the 

Disgorgement Obligation to the Monitor are of a de minimis nature such that the 

Monitor determines that the administrative cost of making a disgorgement 

distribution is impractical, the Monitor may, in its discretion, treat such 

disgorgement payments as civil monetary penalty payments, which the Monitor 

shall forward to the Commission. To the extent any funds accrue to the U.S. 

Treasury for satisfaction of Respondents’ Disgorgement Obligation, such funds 

shall be transferred to the Monitor for disbursement in accordance with the 

procedures set forth in this Order. 

Any amounts paid by Respondents toward the Total Monetary Obligation shall 

first be paid in satisfaction of the Disgorgement Obligation. 

3. Cooperation with the Monitor: Respondents shall cooperate with the Monitor as 

appropriate to provide such information as the Monitor deems necessary and 

appropriate to identify Respondents’ clients, whom the Monitor, in its sole 

discretion, may determine to include in any plan for distribution of any 

disgorgement payments. Respondents shall execute any documents necessary to 

release funds that they have in any repository, bank, investment or other financial 

institution, wherever located, in order to make partial or total payment toward the 

Disgorgement Obligation. 

4. Cooperation with the Commission: Respondents shall cooperate fully and 

truthfully with the Commission, including the Division of Enforcement 

(“Division”), in this action and in any current or future Commission investigation 

or action related thereto. As part of such cooperation, Respondents agree to: 

a. preserve and produce to the Commission in a responsive and prompt 

manner, as requested by Division staff, all relevant non-privileged 
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documents, information, and other materials wherever located, in the 

appropriate possession, custody, or control of Respondents; 

b. utilize their knowledge and skill to explain transactions, interpret 

information and terminology, or identify new and productive lines of 

inquiry; 

c. prepare and appear for interviews and testimony at such times and places 

as requested by Division staff; 

d. respond completely and truthfully to all inquiries and interviews, when 

requested to do so by Division staff; 

e. identify and authenticate relevant documents and other evidentiary 

materials, execute affidavits and/or declarations, and testify completely 

and truthfully at depositions, trial, and other judicial proceedings, when 

requested to do so by Division staff; 

f. enter into tolling agreements, when requested to do so by Division staff, 

during the period of cooperation; 

g. waive any defense based on the statute of limitations applicable to any 

charges brought in connection with any proceedings; 

h. consent to procedural matters, when requested to do so by Division staff, 

in connection with the Proceedings; 

i. accept service by mail, electronic mail, or facsimile transmission of 

notices or subpoenas for documents and/or testimony; 

j. waive the territorial limits on service contained in Rule 45 of the Federal 

Rules of Civil Procedure and any applicable local rules in connection with 

requests or subpoenas of Division staff; and 

k. serve by hand delivery or by next-day mail all written notices and 

correspondence required by or related to Respondents’ cooperation to the Director 

of the Division of Enforcement, Commodity Futures Trading Commission, Three 

Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, unless 

otherwise directed in writing by Division staff. 

5. Partial Satisfaction: Respondents understand and agree that any acceptance by the 

Commission of any partial payment of Respondents’ CMP Obligation shall not be 

deemed a waiver of their obligation to make further payments pursuant to this 

Order, or a waiver of the Commission’s right to seek to compel payment of any 

remaining balance. 
6. 

7. 

Change of Address/Phone: Until such time as Respondents satisfy in full their 

CMP and Disgorgement Obligations as set forth in this Order, Respondents shall 

provide written notice to the Commission by certified mail of any change to their 

telephone number and mailing address within ten calendar days of the change. 

Until such time as Respondents satisfy in full their CMP Obligation, and 

Disgorgement Obligation upon the commencement by or against either 

Respondent of insolvency, receivership or bankruptcy proceedings or any other 

proceedings for the settlement of Respondents' debts, all notices to creditors 

required to be furnished to the Commission under Title 11 of the United States 

Code or other applicable law with respect to such insolvency, receivership 

bankruptcy or other proceedings, shall be sent to the address below: 

Secretary of the Commission 

Office of the General Counsel 

Commodity Futures Trading Commission 

Three Lafayette Centre 

1155 21st Street N.W. 

Washington, D.C. 20581 

The provisions of this Order shall be effective as of this date. 

By the Commission. 

~h~-

Christopher J. Kirkpatrick 

Secretary of the Commission 

Commodity Futures Trading Commission 

Dated: September 26, 2022 

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