UNITED STATES OF AMERICA
COMMODITY FUTURES TRADING COMMISSION
MARK A. FERRIOLA,
CFTC Docket No. 98-R114
|CARLO SCOTT KEARSE-McNEILL||
ORDER PURSUANT TO
On June 30, 2000, the Commission issued
an Opinion and Order in this matter. It concluded that the record
showed that respondent Carlo Scott Kearse-McNeill violated Section
4c(b) of the Commodity Exchange Act and Commission Rule 33.10 both by
fraudulently inducing complainant Mark A. Ferriola to open and
maintain his options account and trading complainant's account to
generate commissions. The decision did not include an award of damages
because there was a dispute over the amount of Ferriola's damages
that remained unpaid. In response to the Commission's order to
show cause, complainant resolved this dispute by consenting to an
award of $45,050 plus interest.
Accordingly, the Commission's June 30, 2000 Opinion and Order shall be deemed a final decision awarding complainant $45,050 plus interest.
IT IS SO ORDERED.1
Edson G. Case
Deputy General Counsel
Commodity Futures Trading Commission
Dated: August 4, 2000
1 By the Commission pursuant to delegated authority. 17 C.F.R. § 12.408(a)(6).
Under Sections 6(c) and 14(e) of the Commodity Exchange Act, 7 U.S.C. §§ 9 and 18(e)(1994), a party may appeal a reparation order of the Commission to the United States Court of Appeals for only the circuit in which a hearing was held; if no hearing was held, the appeal may be filed in any circuit in which the appellee is located. The statute also states that such an appeal must be filed within 15 days after notice of the order and that any appeal is not effective unless, within 30 days of the date of the Commission order, the appealing party files with the court a bond equal to double the amount of any reparation award.
A party who receives a reparation award may sue to enforce the award if payment is not made within 15 days of the date the order is served by the Proceedings Clerk. Pursuant to Section 14(d) of the Act, 7 U.S.C. § 18(d) (1994), such an action must be filed in a United States District Court. See also 17 C.F.R. § 12.407 (1999).
Pursuant to Section 14(f) of the Act, 7 U.S.C. § 18(f) (1994), a party against whom a reparation award has been made must provide to the Commission, within 15 days of the expiration of the period for compliance with the award, satisfactory evidence that (1) an appeal has been taken to the United States Court of Appeals pursuant to Sections 6(c) and 14(e) of the Act or (2) payment has been made of the full amount of the award (or any agreed settlement thereof). If the Commission does not receive satisfactory evidence within the appropriate period, such party shall be automatically prohibited from trading on all contract markets and its registration under the Act shall be automatically suspended. Such prohibition and suspension shall remain in effect until such party provides the Commission with satisfactory evidence that payment has been made of the full amount of the award plus interest thereon to the date of payment.