UNITED STATES OF AMERICA
COMMODITY FUTURES TRADING COMMISSION
|In the Matter of||)||CIVIL DOCKET NO. SD-99-7|
|JAMES L. CONNELLY||)|
|Park Ridge, Illinois 60068||)|
OPINION AND ORDER ACCEPTING OFFER OF
SETTLEMENT OF REGISTRANT JAMES L. CONNELLY
AND RESTRICTING REGISTRATION
On this date, the Commission filed a Notice of Intent to Condition, Suspend, Revoke or Restrict Registration ("Notice") against Registrant James L. Connelly ("Connelly").1 Connelly has submitted an Offer of Settlement ("Offer"). Upon consideration, the Commission has determined to accept the Offer.2 Solely on the basis of the consent evidenced by the Offer, and without any adjudication on the merits, the Commission finds that Connelly is subject to statutory disqualification pursuant to Section 8a(4) of the Act, 7 U.S.C. § 12a(4) (1994), because cause exists under Section 8a(3) of the Act, 7 U.S.C. § 12a(3) (1994), to warrant refusal of registration.3
Accordingly, the Commission HEREBY ORDERS that
1. Connelly's registration as a floor broker is subject to the following restriction:
Connelly shall abide by a lifetime dual-trading restriction, applicable to trading on every exchange designated as a contract market, which requires that each time Connelly receives, executes, solicits, transmits, or handles a customer order in any capacity he will be prohibited from trading or placing an order in that commodity for his personal account, or any account in which he has a beneficial interest, until he gives written notice to the compliance department of the applicable exchange of his intention to stop dealing with customers or customers' orders and begin trading for his own account, and a thirty-day period has passed, during which time Connelly has not received, executed, solicited, transmitted or handled, in any capacity, a customer order; and
2. Connelly will comply with the following undertakings:
A. not to petition the Commission to lift the restriction on his floor broker registration, set forth above, for ten years from the date of the Commission's Opinion and Order accepting the Offer; further provided that relief from the lifetime dual-trading restriction imposed upon Connelly by the Chicago Mercantile Exchange ("CME"), as set forth in the CME's September 20, 1994 Notice of Final Decision (No. 93-1847-SH), shall also be subject to independent review and approval by the CME; and
B. neither he nor any of his agents or employees under his authority or control shall take any action or make any public statement denying, directly or indirectly, any allegation in the Notice or findings or conclusions in the Order, or creating or tending to create, the impression that the Notice or the Order is without a factual basis; provided, however, that nothing in this provision shall affect Connelly's (i) testimonial obligations, or (ii) right to take legal positions in other proceedings to which the Commission is not a party. Connelly will undertake all steps necessary to assure that all of his agents and his employees understand and comply with this agreement.
The provisions of this Order shall be effective on this date.
A copy of this Order shall be served upon Connelly at the address set forth in the caption, upon the National Futures Association and all contract markets.
By the Commission:
|Secretary to the Commission|
|Commodity Futures Trading Commission|
|Date: July 29, 1999||___________________________________|
1 The Notice alleges that Connelly's registration is subject to revocation, suspension or restriction under Section 8a(4) of the Commodity Exchange Act, as amended ("Act"), 7 U.S.C. § 12a(4) (1994), because cause exists under Section 8a(3) of the Act, 7 U.S.C. § 12a(3) (1994), to warrant refusal of registration.
2 In his Offer, without admitting or denying the allegations of the Notice, Connelly acknowledges service of the Notice; admits the jurisdiction of the Commission with respect to all matters set forth in the Notice; waives a hearing, all post-hearing procedures, judicial review by any court, any objection to the staff's participation in the Commission's consideration of the Offer, all claims which he may possess under the Equal Access to Justice Act, 5 U.S.C. § 504 (1994), and 28 U.S.C. § 2412 (1994), as amended by Pub. L. No. 104-121, §§ 231-32, 110 Stat. 862-63, and Part 148 of the Commission's Regulations, 17 C.F.R. §§ 148.1 et seq. (1998), relating to or arising from, this action, and any claim of Double Jeopardy based upon institution of this proceeding or the entry in this proceeding of any order imposing a civil monetary penalty or any other relief; and stipulates that the record basis on which this Commission Opinion and Order ("Order") is entered consists of the Notice and the findings consented to in the Offer, which are incorporated in this Order.
3 In his Offer, Connelly agrees that these findings may be used in this proceeding and in any other proceeding brought by the Commission or to which the Commission is a party.