UNITED STATES OF AMERICA
COMMODITY FUTURES TRADING COMMISSION
|In the matter of:||)||CFTC DOCKETS NO. SD 00-01|
CAPITAL INSIGHT BROKERAGE, INC.,
|)||NOTICE OF INTENT TO SUSPEND,|
|)||REVOKE, OR RESTRICT|
|)||REGISTRATION PURSUANT TO|
|)||SECTIONS 8a(2)(C) OF THE|
|)||COMMODITY EXCHANGE ACT, AS|
|)||AMENDED, AND PART 3 OF THE|
|click here for the "Opinion and Order"|
The Commodity Futures Trading Commission ("Commission") has received information from its staff which tends to show, and the Commission's Division of Enforcement ("Division") alleges and is prepared to prove that:
1. Capital Insight Brokerage, Inc. is a California corporation, whose principal place of business was at 190 North Canon Drive, Beverly Hills, California 90210, and which was dissolved in 1997. Capital Insight's current mailing address is 270 North Canon Drive, #1091, Beverly Hills, California 90210. Capital Insight has been registered with the Commission as an introducing broker, pursuant to Section 4f of the Commodity Exchange Act, as amended ("Act"), 7 U.S.C. § 6f (1994), since December 23, 1992. Capital Insight was previously registered as a futures commission merchant, also pursuant to Section 4f of the Act, 7 U.S.C. § 6f (1994), from May 6, 1988 until December 23, 1992.
2. On November 8, 1999, in the United States District Court for the Central District of California, the Commission filed a Complaint against Capital Insight and S. Jay Goldinger, the owner, President, and associated person of Capital Insight, in Commodity Futures Trading Commission v. S. Jay Goldinger and Capital Insight Brokerage, Inc., Civil No. 99-11543 WMB (BQRx) (C.D. Cal. 1999).
3. On November 12, 1999, the Court entered a Consent Order of Permanent Injunction and Other Equitable Relief ("Consent Order") against Capital Insight. The Consent Order, among other things, enjoined Capital Insight from violating Sections 4b(a)(i)-(iii), 4c(b), and 4o(1)(A)-(B) of the Act, and Commission Regulation 33.10(a)-(c), and acting in any capacity for which registration with the Commission is required, including as an introducing broker, and ordered that Capital Insight disgorge ill-gotten gains in the amount of six million dollars. Copies of the Consent Order and the Consent of Capital Insight to the Consent Order are attached hereto as Exhibits 1 and 2.
4. The facts set forth in paragraphs 2 and 3 above constitute a basis for statutory disqualification from registration under Section 8a(2)(C) of the Act, 7 U.S.C. § 12a(2)(C) (1994), pursuant to which any current registration of Capital Insight may be suspended, revoked, or restricted upon notice and with such a hearing as may be appropriate.
Pursuant to Section 3.60 of the Commission's Regulations, 17 C.F.R. § 3.60 (1998), Registrant Capital Insight is hereby notified that a public proceeding shall be conducted in accordance with the provisions of Section 3.60 of the Regulations on the question of whether Capital Insight is subject to a statutory disqualification from registration under Section 8a(2)(C) of the Act, 7 U.S.C. § 12a(2)(C), as set forth in Section I above and, if so, whether the registration of Capital Insight should be suspended, revoked, or restricted. Such proceeding shall be held before an Administrative Law Judge in accordance with Section 3.60, and all post-hearing procedures shall be conducted pursuant to Section 3.60(i)-(j).
In accordance with the provisions of Section 3.60(a)-(b), 17 C.F.R. § 3.60(a)-(b) (1998), Registrant Capital Insight is entitled to file a response challenging the evidentiary basis of the statutory disqualification or to show cause why, notwithstanding the accuracy of the allegations, its registration should not be suspended, revoked, or restricted. Such response must be filed with the Hearing Clerk, Office of Hearings and Appeals, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, and served upon John T. Wise, Regional Counsel, or Faye Chen Barnouw, Trial Attorney, Division of Enforcement, Commodity Futures Trading Commission, 10900 Wilshire Boulevard, Suite 400, Los Angeles, CA 90024, or on such other counsel as may be designated by the Division of Enforcement, within thirty (30) days of the date of service of this Notice upon the Registrant in accordance with the provisions of Section 3.60(b) of the Regulations. If Registrant fails to file a timely response to this Notice, the allegations set forth herein shall be deemed to be true and the presiding officer may issue an Order of Default in accordance with the provisions of Section 3.60(a)(4) of the Regulations.
The Hearing Clerk shall serve this Notice by registered or certified mail pursuant to Section 3.50 of the Commission's Regulations, 17 C.F.R. § 3.50 (1998).
|By the Commission.|
|Date: February 16, 2000|
|Secretary to Commission|
|Commodity Futures Trading Commission|
Exhibit 1: Consent Order of Permanent Injunction and Other Equitable Relief
Exhibit 2: Consent of Capital Insight