UNITED STATES OF AMERICA
Before the
COMMODITY FUTURES TRADING COMMISSION

A. ANTOINE KACEM †††††

††††††††††††††††††††††††††††††††††††††††††††††††† †††††††††††† CFTC Docket No. 94-R169

v. ††††††††††††††††††††††††††††††††††††††††††††††††††††

†††††††††††††††††††††††††††††††††††††††††††††††††† †††††††††††††††††† ORDER

CASTLE COMMODITIES CORP.††††


The Commission on May 20, 1997, issued an opinion and order in the above-captioned case awarding damages to the complainant, Antoine Kacem, against respondent Castle Commodities Corp. Respondents who fail to satisfy reparation awards within 15 days after the Commissionís order are to be automatically suspended from registration and prohibited from trading on any contract market. See Section 14(f) of the Commodity Exchange Act, 7 U.S.C. ß 18(f) (1994). It is the respondentís duty to apprise the Commission that an award has been satisfied. See Commission Rule 12.407(c), 17 C.F.R. ß 12.407(c) (1997). Complainant Kacem has apprised the Commission that only a portion of the award has been satisfied and asks that nonpayment sanctions be imposed.

Rule 12.407(c) requires that respondents demonstrate satisfaction by filing with the Proceedings Clerk either "[a] copy of a certified check or the equivalent showing satisfaction of the award; or [a] sworn release executed by each recipient of a reparation award . . . ."

The only document submitted by Castle is a letter dated June 20, 1997 purporting to set forth:

a memorandum of understanding among Castle Commodities Corporation, [Castle CEO] Muraji Nakazawa (as partial personal guarantor), and Antoine Kacem regarding payment of the CFTC reparations award against Castle and payable to Kacem . . . .

The letter sets forth a proposed schedule of installment payments to be made over a seven-month period to satisfy the award. The document on its face fails to meet the requirements of Rule 12.407(c). It is signed by Kacem and by Nakazawa in his individual capacity, but not by Castle, the party against which the award runs. It is unsworn and contains no language of release. In addition, the document states that it is "subject to . . . execution of a definitive agreement." Finally, the document states that "[n]othing herein shall constitute any waiver or impairment of Mr. Kacemís right to seek enforcement of the CFTC reparations award in the event of non-payment."

Castle has neither paid the award in full nor submitted a sufficient settlement agreement. Accordingly, Castle shall be prohibited from trading on all contract markets, and its registration shall be suspended immediately.

IT IS SO ORDERED.

By the Commission (Chairperson BORN and Commissioners TULL, HOLUM and SPEARS).

____________________________________

Jean A. Webb

Secretary of the Commission

Commodity Futures Trading Commission

Dated: December 16, 1997