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UNITED STATES OF AMERICA

Before the

COMMODITY FUTURES TRADING COMMISSION

In the Matter of:

Starberry Limited, 

Respondent.

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CFTC Docket No. 22 –17

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 

from February 28, 2020 through March 17, 2020 (the “Relevant Period”), Respondent Starberry 

Limited (“Starberry”) violated Section 4d(a)(1) of the Commodity Exchange Act (“Act”), 7 U.S.C. 

§ 6d(a)(1). Therefore, the Commission deems it appropriate and in the public interest that public

administrative proceedings be, and hereby are, instituted to determine whether Respondent has

engaged in the violations as set forth herein and to determine whether any order should be issued

imposing remedial sanctions.

In anticipation of the institution of this administrative proceeding, Respondent has 

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

Without admitting or denying any of the findings and conclusions herein, Respondent consents 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 acknowledges 

service of this Order.1

1 Respondent consents 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 agrees that 

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

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. Respondent does 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, Starberry operated as a futures commission merchant (“FCM”)

while not registered with the Commission in any capacity. Specifically, Starberry accepted and 

placed orders, and accepted money in connection with those orders, from a foreign customer

(“Foreign Customer”) for NYMEX West Texas Intermediate (“WTI”) crude oil futures contracts 

(“CL”). Starberry earned $1,376,206.81 in commissions and fees from trading CL on behalf of 

the Foreign Customer. 

In accepting Respondent’s Offer, the Commission recognizes the substantial cooperation 

of Starberry with the Division of Enforcement’s investigation of this matter. The Commission’s 

recognition of Respondent’s substantial cooperation is further reflected in the form of a reduced 

penalty. 

B. RESPONDENT

Starberry Limited is a corporation organized and existing under the laws of Cyprus with 

its principal place of business in Nicosia, Cyprus. Starberry has never been registered with the 

Commission in any capacity.

C. FACTS

Prior to February 28, 2020, Starberry never traded any futures contract in any U.S. market. 

During the Relevant Period, however, Starberry began trading futures contracts in the United 

States for a Foreign Customer. After accepting margin payments of over $400 million from the 

Foreign Customer, Starberry deposited that money in its proprietary trading account at a registered 

futures commission merchant. In total, Starberry executed more than 12,500 futures trades on 

NYMEX in March 2020 on behalf of the Foreign Customer. Starberry’s trading resulted in $86 

million in profits for the Foreign Customer during the Relevant Period and $1,376,206.81 in 

commissions and fees for Starberry. 

Starberry acted as an FCM without being registered.

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 Starberry accepted buy and sell

orders for commodity futures contracts on behalf of the Foreign Customer and accepted money in 

connection with those orders. 

Starberry substantially cooperated with the Commission’s investigation by confirming the 

identity of the Foreign Customer, producing documents with courtesy translations, providing the 

facts learned from and translation of foreign-language interviews Starberry conducted of key 

 

2 While scienter is not a requirement of a registration violation, Starberry represents, and the Commission has not 

found herein to the contrary, that Starberry did not act with the intent of violating Commission registration 

requirements. 
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individuals outside the United States as part of its internal investigation, and agreeing to maintain

$350 million in the United States pending the Commission’s investigation.

III. LEGAL DISCUSSION

Under Section 1a(28) of the Act, 7 U.S.C. § 1a(28), a Futures Commission Merchant 

(“FCM”) is defined, in relevant part, as: 

an individual, association, partnership, corporation, or trust— 

(i) that— 

(I) is— 

(aa) engaged in soliciting or in accepting orders for— 

(AA) the purchase or sale of a commodity for future delivery; ...; and 

(II) in or in connection with activities described in items (aa) ... accepts any 

money, securities, or property (or extends credit in lieu thereof) to margin, 

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

The Act requires anyone falling within the definition of an FCM, inter alia, to be registered with 

the Commission. See Section 4d(a)(1), 7 U.S.C. § 6d(a)(1). As described above, Starberry while 

not registered as an FCM, acted as an FCM as defined in Section 1a(28) of the Act by accepting 

orders for the purchase and sale of commodity futures contracts and accepting money in connection 

with those orders. (Starberry did not qualify for an exemption from registration available to certain 

foreign brokers under Regulation 3.10(c)(2) because it traded on behalf of the Foreign Customer 

in Starberry’s name alone through Starberry’s proprietary trading account.) Therefore, 

Respondent violated Section 4d(a)(1) of the Act. 
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IV. FINDINGS OF VIOLATION

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

Respondent violated Section 4d(a)(1) of the Act, 7 U.S.C. § 6d(a)(1). 

V. OFFER OF SETTLEMENT

Respondent has submitted the Offer in which it: 

A. Acknowledges service of this Order; 

B. Admits 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. Waives: 

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 it 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 it may possess under the Small Business Regulatory 

Enforcement Fairness Act of 1996, Pub. L. No. 104-121, §§ 201-253, 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; 
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D. Stipulates that the record basis on which this Order is entered shall consist solely 

of the findings contained in this Order to which Respondent has consented in the 

Offer; 

E. Consents, solely on the basis of the Offer, to the Commission’s entry of this Order 

that:

1. makes findings by the Commission that Respondent violated Section 

4d(a)(1) of the Act, 7 U.S.C. § 6d(a)(1); 

2. orders Respondent to cease and desist from violating Section 4d(a)(1) of 

the Act; 

3. orders Respondent to pay a civil monetary penalty in the amount of one 

million three-hundred seventy-six thousand two hundred six dollars and 

eighty-one cents ($1,376,206.81) plus any post-judgment interest; and 

4. orders Respondent and its successors and assigns 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. Respondent shall cease and desist from violating Section 4d(a)(1) of the Act, 7 U.S.C. § 

6d(a)(1). 

B. Respondent shall pay a civil monetary penalty in the amount of one million three-hundred 

seventy-six thousand two hundred six dollars and eighty-one cents ($1,376,206.81) (the 

“CMP Obligation”). If the CMP Obligation is not paid in full within ten business days of 

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

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. 

Respondent shall pay the CMP Obligation 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 by other than electronic funds transfer, the payment shall be made payable to the 

Commodity Futures Trading Commission and sent to the address below: 

CFTC

C/O ESC/AMK-326; HQ RM 265 

6500 S. MacArthur Blvd. 

Oklahoma City, OK 73169 

(405) 954-6569 office 

(405) 954-1620 fax 
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9-AMC-AR-CFTC@faa.gov

If payment is made by electronic funds transfer, Respondent shall contact the email address 

9-AMC-AR-CFTC@faa.gov to receive payment instructions and shall fully comply with 

those instructions. Respondent shall accompany payment of the CMP Obligation with a 

cover letter that identifies Respondent and the name and docket number of this proceeding. 

Respondent 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, NW, Washington, D.C. 20581. 

C. Respondent and its successors and assigns shall comply with the following conditions and 

undertakings set forth in the Offer: 

1. Public Statements: Respondent and neither it nor any of its successors and assigns, 

agents, or employees under its 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 

Respondent’: (i) testimonial obligations; or (ii) right to take legal positions in other 

proceedings to which the Commission is not a party. Respondent and its successors 

and assigns shall undertake all steps necessary to ensure that all of its agents and/or 

employees under its authority or control understand and comply with this 

agreement. 

2. Disgorgement: Respondent agrees to pay disgorgement in the amount of one 

million three-hundred seventy-six thousand two hundred six dollars and eighty-one 

cents ($1,376,206.81) (“Disgorgement Obligation”), representing the gains 

received in connection with such violation, within ten business days of the date of 

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

business 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. 

Respondent shall pay the Disgorgement Obligation 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 by other than electronic funds transfer, the payment 

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

the address below: 

CFTC

C/O ESC/AMK-326; HQ RM 265 

6500 S. MacArthur Blvd. 

Oklahoma City, OK 73169 

(405) 954-6569 office 

(405) 954-1620 fax 

9-AMC-AR-CFTC@faa.gov
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If payment is made by electronic funds transfer, Respondent shall contact the email 

address 9-AMC-AR-CFTC@faa.gov to receive payment instructions and shall 

fully comply with those instructions. Respondent shall accompany payment of the 

Disgorgement Obligation with a cover letter that identifies Respondent and the 

name and docket number of this proceeding. Respondent 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, NW, Washington, D.C. 20581. 

3. Partial Satisfaction: Respondent understands and agrees that any acceptance by the

Commission of partial payment of Respondent’ CMP Obligation shall not be

deemed a waiver of its obligation to make further payments pursuant to this Order,

and shall not be deemed a waiver of the Commission’s right to seek to compel

payment of any remaining balance.

4. Change of Address/Phone: Until such time as Respondent satisfies in full its CMP

Obligation as set forth in this Order, Respondent shall provide written notice to the

Commission by certified mail of any change to its telephone number and mailing

address within ten calendar days of the change.

5. Until such time as Respondent satisfies in full its Disgorgement Obligation and

CMP Obligation, upon the commencement by or against Respondent of insolvency,

receivership or bankruptcy proceedings or any other proceedings for the settlement

of Respondent’s 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

Legal Division

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street N.W. 

Washington, DC 20581 

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

By the Commission

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Robert N. Sidman 

Deputy Secretary of the Commission

Commodity Futures Trading Commission

Dated: June 24, 2022