Free Motion for Miscellaneous Relief - District Court of Arizona - Arizona

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or conducted officeor busincss the tjnitcd Srates an in for thepurpose soliciting, ol acceptlng orderfbr, or othcrwise any dealingin transactions in, or in connection

with, a contract the purchase saleofa commodity for or for f.uture deliverywhen: (a) suchtransactions havenot beenconclucted or subject the rulesof.a board on to oftrade whichhasbsendcsignated registered the or by Contmission a conrract as

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market dcrivatives or transaction cxecution tacilitylbr suchcommodity; (b) and suchcontracts havenot bcenexecuted cclnsurnnratedor tltrouglt or by such contract market, violationof'section4(a)ofrhc Act, 7 tJ.S.C. 6(a)(2002). in g 38. Because llolt directlycontrolled thesignificant all business,

marketing financial and aspc'crs ol'lliA, Clobal Clanrbridge knowingly and and

the constituting violations rhcse ofsection 4(a)ofthe Act,7 U.S.C. t 2 induced acts Det'endanr is theconrrolling ttolt t 3 { 6(a)(2002), person ol'll..A, GIobal and
t 4 C a m b r i d g o r p u r p o s e ss e c r i o n3 ( b ) f t h eA c t ,7 L l . S . C . I 3 c ( b ) ( 2 0 0 2 ) . fe of I o g l5 39. Defendanl Holt. as tlrccorrtr.olling po.son ol-lFA, Globaland

t 6 C a m b r i d g es l i a b l el o r I F A ' s . i, G I o b a l ' s n dC a m b r i c l g e ,is l a t i o no l . s e c t i o n a v o s I 7 4 ( a )o f t h e A c t , 7 t J . S . C\. 6 ( a )( 2 0 0 1 )p L r r s u atn rS c c r i o n3 ( b )o f t h e A c t , 7 , o l l8 U . S . C $ l 3 c ( b )( 2 0 0 2 ) . . l9 20 2l 22

IV. O R D E RF O RP E R M A N E N TN J U N C T I O N I I T I S H E R I ' B Yo R D E R E Dl h a t :
c o N s E N T ( I R D I I R O J : J ) t i R \ 1 \tNt f\ l t \ t . \ RI-]I-1EIJ
(ll(-t\ tt))t t,\, Case 2:03-cv-01826-PGR ltlttttr)/t,rrtl ..

o N . N 1 ( t \ t : t .R y . t L ) c \ I t N T A N DO t . H L IItj Q U I T A B L E a I

t) ,1,... Document 109-4

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40.

Delendants I{olt. Il;A. GlobalandCanrbridge pennanently ar.c

restrained, enjoined, prohibited and fiom, directlyor indirectly. cheatrng or defrauding attempting cheator defraud or to otherpcrsons willfuliy deceiving and or aftempting deccive to otherpcrsons makingtalse, by deceptive misleading or representattonsmaterial or lbcts,by lailingto disclose rnaterial facts, and by misappropriating customer lundsin or in connection with orders make,or the to makingoi, contracts ol'saleof cornmodities futuredelivery, lor madeor to be madefor or on behall'ofany other.person violationofsections4b(a)(2)(i) in and ( i i i ) a n d4 ( a )o f t h e A c r . 7 ( J . S . Cr.s s s ( a X 2 X ia n d( i i i ) a n d6 ( c )( 2 0 0 2 ) . 6b )

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41.

Defendants IFA,ClobalandCarrrbridge permanently Hoh. are

enjoined, prohibited and liorn,directly indirectly, or oflering enrer ro t 2 restrained, conlirming execution or conducting officeor business lhe of', t 3 into,executing, an in States thepurpose soliciting. fbr l 4 theUnited of accepting order or any for,
t 5 otherwise dealing transactions or in connection a contract the in in, with, for t 6 purchase sale a contrrodity lirture or of for (a) delivery when: sr.rch transactions l 7 havenot been conducted or subject therulesofa boardoftradc which has on to l8 l9 20 2l 22 market,in violationof Secrion 4(a) of the Act, 7 U.S.C.S 6(a)(2002). beendesignated registered thc Comrnission a contract or by as markelor derivatives transaction execurion l-acility suchcommodity; (b) such 1br and contracts havenot beenexecuted consummated or through or by suchcontract

CONSENTORDERO[PtRMA\INII\,]I]N'IION.MONI]IARYJI]DG|\|ENIANDOl}{IlREQTJIIABLE RELIEF C m ( \ l n t e r h t t i o n n/ r n l i D c r \ r \ n a n ! t r r 1 \ , t a l Case 2:03-cv-01826-PGR Document 109-4 Filed 01/03/2006 Page 2 of 11

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IT IS HEREBY FURTT{ER ORDERET) that:
42. Delendants Holt, IFA, GlobalandCambridge pennanently are restrained, enjoined, prohibited, and directlyor indirectly, frorr engaging the in followingtradingactivities: A. Tradingon or subiect thc rulesofany registered to entity,asthat terrn is definedin SectionIa(29)ofthc Act, 7 U.S.C.S I a(29); B. Engaging conrrolling, dirccring rrading in, or the ofany futures or options accounts or on behalfofanvothcrperson entity, for or whether powerof attomey otherwise; by or C. Soliciting accepting f'unds or any from any person connection in with the purchase saleofany commodity or interest contract; D. Placing orders giving adviceor pricequotations, other or or information connection in with the purchase saleof commodit, or interest contracts themselves others; for and E. Introducing clients any otherperson to engaged the business in of commodity interest trading; F. Issuing statements reports others or to concerning commodity interest trading: and G. Applying tbr rcgistration clainring or exemption fron registration with theComrrrission any capacity, engaging anyactivity in and in requiring suchregistrarion exemption or liom registration with the Commission, except provided in Regulation a(a)(9), as for a.l I 7 C.F. { a.l a(a)(9). actingasa principal, R. or agent, officeror employee ofany person registered, required be registered, to or exempted lrom registration, exccptasprovided in Reguiation lor a . l a ( a ) ( 9 )l,7 C . F . R $ a . l a ( a ) ( 9 ) . .

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CONSENT ORLII:R PERNiANENI OF tN.tUNCrON M O N I l I A R Y J I ] I ) G I \ I E I V T N D O T H I J RE Q U l T A B L E I . A RELILF
(-FTC rt l:M/lt,)t t\\ \ Case 2:03-cv-01826-PGR htt.rnati.rul t,tx,: . I t! t,r. Document 109-4

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4 3 . f h e i n j u n c r i vp r o v i s i o no f t h i sO r d e r h a l lb e b i n d i n g p o n e s s u Defendants llolt, IFA. Globaland Ciambridge, any person jnsofarashe or she and is actingin the capacity olotficer, agent, servanl, attomcyof Def.endants or Holt, IFA, Globaland Cambridgc, any person and who receives actualnoticeof this Orderby pcrsonal seryicc othcrrvise or insofar he or sheis actingin actlve as concert participation or rvith l)et'errdants IFA, Globaland Carrbridge. Holt,

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O R D E RF O RO T H E T I I O T J I T A B LR E L I D F E IT IS FURTHER RDERED IIAT: O T
44. PAYMENT OF RESTITUT'ION: I)efendants lJolt, IFA, Globaland

be arc.jointlv and severally liablcto makcrestitution the in t 2 Cambridge and herebv rcpresentirrg lirndsl'raudulcnrly obtained fiom l 3 amountof $ 14,406,252.00, as t 4 customers a resultof theconduct alleged theCornplaint, in together with I 5 prejudgntcnt intercst thereon the a[]ount 01'$ ,557.I 8 | .00,fbr a totalol' in I t 6 $15,963,433.00, post-.judgmcnr plus inrercst the interesr serforth in 2g at fate t 7 U.S.C. l96l ("Restitution S A r n o u n t " ) T l r eC o r n n r i s s i o na y , n l o r c eh eC o u r t ' s . nr e t
lll

judgmentfor restitlrtion prcjudgrnent and irteresr nrovingfor civil contempt b) (and/or through othercollqction procedures authorized law) at anytime afterten bv daysfollowingentryof this Order

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CO|'SENT ORDIR Of PER\tANF.].,tT ]NCTtON. tN.[ \.IONETARy JIDGrlrrNTANI) Ol IEREeUtTABLE REI_tEF
('l-1(-\\ t.t')ntt,'tt! l,"t.t,,i- t.,., ,, t ,t .r I Casel ,2:03-cv-01826-PGR . : : t Document 109-4

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PAYMENTOF CML MONETARy pENALITy: Defendanrs
Holt, IFA, GIobaland(iarnbridge and herebl, jointly ancl bc are sevcrally Iiableto pay a civil monetary penalty of$15,963,433.00. Def'cndants makesuch shail payment electronic by lundstransf'er, by lJ.S.postalmoneyorder,certified or check,bankcashier's chcck.or bankntoneyorder,ntade payable the to Commodity Futures posey, TradingCornntission, sentto l)ennese and Divisionof Enforcement, Cornrrodity Futures TradingConrrnission, l'hreeLafayette Centre, I 1 5 52 l " S t r e e tN . W . ,W a s h i n g t o D,. C .2 0 5 8 1u n d c r c o v c rl e t t e r h a ti d e n t i f i e s , n . a t Holt, IFA, GlobalandCarrbridge tirenameand docketnumber the arrd of 'lhe proceedings. Comnrission cnlbrcctheCourr's.judgment civil nray for

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penalty movinglirr civil contcnrpt by (and/ofthrough othercollection t 2 monetary authorized law) at any lime alicr tendayslbllowingentryofthis bv l 3 procedures l 4 Order. l5 t 6 is hereby appointed the Monirorlbr.the receipt as anddistribution theJudgnrenl of l'l t8 t9 20 of Restitution. 2l 22
C O N S E NO R D L R F P LR ] V I A N I I N J ( J N ( ' I I O N . M O N L I A R Y J U D ( J IA NE N l T H I l K T O EN VI DO EQIJI-IAI]LE REI-IEF
Cl.l( t, tt,"r\jr,rjrt t rI t r! | , , : t . t , . . , Casel ,2:03-cv-01826-PGR ..:t , , ,t . t . t t . . t <

ofRestitution.The NationalFurures Assoaiation shallbe the Monitorfor this actionuntil the contplete satislitction ol'theJudgment Restitution the of and complete distribution ofall tundspaidor.collccted satisfaction in ofthis Judgmenr

Document 109-4

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47. COLLECTTON RESTITUTION:Det'endants make OF shall payments satislaction the-judgrrrent in of ofrcstitution by.elcctronic funds transfer,

3 or by U.S.postal rnoncy ordc[, ccniflcd check, bank cashier.s check, bank or .l 5 6 '7 8 9 t0 ll moneyorder,madepayable the National to Futures Association, sentto Daniel and A. Driscoll,Esq.,Executi\.e Vicc presidcnt, ChiefCompliance OfJjcer, his or successor, thc NationalFuturcs at Association, Wcst MadisonStreet, 200 Chicago, Illinois60606. All suchpayments shallbe scntundera coverletterthat identifies Holt, lFA, GlobalandCarrbridge the nanre and anddocketnunrber the of proceedings, 48. DISTRIBU'I'ION OF II.ESTITUTION: As Moniror,the National

Association shalldistritrutc rcslitution paynrents according a list ol' to t 2 Futures and o1'cach cLtstorlrcr's kno,rvn loss,provided the l 3 knowncustomers calculation to l 4 M o n i t o rb y t h eC o m m i s s i o n . a d d i t i o n , c C o m r n i s s i o n a l lp r o v i d eh e In th sh t l 5 NationalFutures ,,r'ith lastknorvn Association thc address eachcusromer. lbr t6

4 9 . M O N I T O R ' S I S C R I ' T I O N O M A K E P R OR A T A D T

t 7 DISTRIBUTIONS: In thc r:vent thatthe Judgntent Rcsriturion only partially of ;s l8 l9 20 2l 22
C O N S E N I . O R D T RO I ] I T I - - R M A \ t ] N I N I I ] N ( ' I ] O N . I v I O N I T A R YI I j D G N I I - \ I A N D O T H I l R E Q L J I T A a I , E I RELIEF
..,, ,, r., ,tttr,ttrrj,rlt rrlrr" r\\ l ( I T Case l 2:03-cv-01826-PGR . , r Document 109-4 (r\ l

satisfied, Monitoris authorized. its solediscr.etion, makeoneor more the in to panialdistributions. Any panialdistribution shallbernadeonapro rata6asis Io thosecustomers who can be located the timc ofthe distribution. at

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50. Notices: notices All required begivenby anyprovision this to in Consent Order shall sent be cenified mail,return receipt requested, follows: as
Noticeto Commission; Directorof Enforcelnent Commodity FuturesTrading LOmmlsslon I I 55 2l stStreet N.W. Washington, 2058I DC

Timothy Mulreany J. Division Enforcement of Commodity Futures Trading Commission I 155 l'' Street .W. 2 N Washington, 20581 DC

Michael Reeves, S. Esq. I2l2 East Osbome P h o e n i x ,r i z o n a 5 0 1 4 A 8 Telephone: (602) 604-7 57j Facsimi (602) 604-7 S5 le: 5 Daniel Driscoll, A. Esq., Executive president Vice ChiefCompliance Officer National Futures Association 200WestMadison Streer Chicago, Illinois 60606 5 | . Entire Aqreement Amendments: Orderincorporates ofthe and This all

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ofthe settle|nent amongthe panies hereto.Nothingshall t 9 termsand conditions 20 serveto amendor modif' this Order in any respeclwhatsoever, unless: 2l (l) reduced writing;(2) signed allpartieshereto; (3) approved to by and by'order

22 of this Court.
CONSENT ORDER PERIlIANENT II JNCTION. OF IN MONETARY JIJDGMENT AND OTHER EQUITABLE RELIEF
| ( F1(- ri lnt.t nntt/ttul I r,,t:ry t\-\ t,tt,"j , t ,t /,. l1 Case 2:03-cv-01826-PGR Document 109-4

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52. Invalidation:lfany provision this Order,or the application of ofany provlsrons circumstances heldinvalid,thc remaintler or is ofthe Orderand the

application ofthe provision anyothcrperson circumstanae to or shallnot be affectedby the holding. 53. Waiver: The failureofany pady hereto orofany customer atany time or tlmesto require perfonnance ofany provision hereofshalr in the right ofsuch partyat a latcrtime to enfbrce same any the or no manner affect otherprovision of provrsron

this Order. No waivcr.inoneor rrore instances ofthc breach ofany

contained this Ordershallbe deemed be or construed a f.u{her in to as or continuing waiverofsuch br.each waivcrofthe breach or ofany otherprovision of

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54. Acknowledgernents: lJponbeingserved with copiesof this Orderafter entryby the Court,the Del'endants shallsignacknowledgments ofsuch service and l 5 servesuchacknowledgmcnts the Courtandthe Commission on within seven (7) l 6 calendardays t7 l8 l9 20 2l 22 56. Authority: llolt hereby warrants that he is the Manage r/Managing DirectoroflFA, GIobaland Cambridge, this Orderhasbeenduly that authorized
CONSENT ORDER PERMANI-\JT OF t\JI]NCI lON.MONI-TARYJTJDGMENT OTHBR AND LQUITABLE REIIEF
('l:l(-\\

55. Continuins Jurisdiction olthis Coud: l his Coun shallretain jurisdiction ofthis cause assure to compriance rviththis order and for a1r other purposes related this action. to

Caset n t ( r o t ! , ) n t t I . t , r / i j ! r 1 , . , , , , / ,Documentt E 2:03-cv-01826-PGR . v , , r , i r r . , 109-4

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Rx 0dte/T re I 0 t T - a ? - ? 0 0 5 ( TtH,U6 l l) ro/27/2005 lt: t7 FAI

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by IFA, Global Cambridge hehasbeen and and dulyempowered signand to submit onbehalfofIFA, it Global Cambridge. and

t

There being nojustreason delay, Clerkofthe Courtis hereby for the directed nter OrderofPermanent to this Iniunction.

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7 8 9 l 0 CONSENTED AND APPROYED TO BY:
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allyandon Funding Association, r 3 behalfof lntemational Cambridge Olobal Group, Global and Group. l 4 Management

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Approved Entry: for
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out, P 4tu

22 )asa

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ael S, R-c-ves,,Esq.

l 8 Phoenix. Arizona 85014 (602) 604-7 7 57 l 9 Tclephone: Facsimile; (602\ 604-7 555 20 2l 22
ORDER PURMANENT CONSENT OF INJUNCI'ION, I\4ONETARY JUDCMIjNTAND OTIJER EOUTTABLE RELIET
(-FT(:vs l,tcrnotionul l:tun.tirR A3v.itdtn.

l2l2 EastOsbome

Case 2:03-cv-01826-PGR

Document 109-4

at el Dt! t.)

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Timothy J. Mulreany,Chief Tdal Attorney PaulG. Hayeck, Associate Director

Commodity Futures Trading Commission
Date:

SO ORDERED, Phoenix, at Arizona rnrs on

dayof

2005.

ROSENBLATT UNITED STATES DISTRICT JUDGE

THE HONORABLEPAUL G.

cc: t6

All Counsel ofRecord

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CONSENT ORDER PERMANENT OF INJTINCTION. MONETARY JUDCMENT AND OTHSR EQUITABLE RELIEF
C FCase l2:03-cv-01826-PGR\ \ r i Document :109-4 I(- rr ntrtntjtt)n,l t lr,ti't,: t\\, t , i r t , 1 1t , : , t )

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CONSENT ORDER PERMANENT OF INJIINCTION, MONETARYJUDGMENT AND OTHEREQUITABLE RELIEF CFTCrs 2:03-cv-01826-PGR I Case Interndtn)nalrndne A\y\.iatit,n.et dt t( 2) Document 109-4 Filed 01/03/2006 Page 11 of 11