CFTC News Release 4357-00 (98-6564-Civ-Seitz)
For Release: February 1, 2000
FLORIDA FEDERAL COURT ENTERS CONSENT ORDER OF PERMANENT INJUNCTION AGAINST GLENN R. TAUBMAN IN CFTC ACTION CHARGING REGISTRATION, DISCLOSURE, AND REPORTING VIOLATIONS
Order Imposes Permanent Injunctions and a Two-Year Registration Ban
WASHINGTON – The Commodity Futures Trading Commission (CFTC) announced today that on January 21, 2000, U.S. District Court Judge Patricia A. Seitz of the U.S. District Court for the Southern District of Florida entered a consent order of permanent injunction against defendant Glenn R. Taubman of Hollywood, Florida, in connection with a three-count complaint alleging violations of a Commission order and violations of registration, disclosure, and reporting requirements filed by the CFTC against Taubman and four other defendants in June 1998.
The CFTC’s action against Taubman and the other defendants, Joseph J. Marchiano, Hartford Financial Group, Inc. (Hartford), Keri L. Stewart, and Gary V. Valletta seeks to enforce a November 22, 1996, CFTC order that, among other things, required Marchiano to pay a $10,000 civil monetary penalty and withdraw his registration, and barred him from acting as a principal of a registrant for one year (the prior Commission order). The CFTC’s complaint alleges Marchiano violated the prior Commission order by failing to pay the $10,000 civil monetary penalty and by acting as an associated person (AP) and principal of Hartford, a registered introducing broker (IB) located in Fort Lauderdale, Florida (see CFTC News Release 4150-98, June 2, 1998).
The complaint also alleges that the listed principals and controlling persons ofHartford – Stewart, Taubman, and Valletta – knew, or acted in a manner to avoid knowing, that Marchiano was prohibited from acting as an AP or principal of a Commission registrant by the prior CFTC order and, by allowing Marchiano to act as an AP and principal of Hartford without registration, they aided and abetted Marchiano and Hartford’s registration violations, as well as disclosure and reporting violations.
Without admitting or denying the allegations in the CFTC’s complaint, Taubman consented to the entry of an order that:
1) permanently enjoins him from violating the registration, disclosure, and reporting provisions of the Commodity Exchange Act (CEA) and CFTC regulations, violating, or aiding and abetting violations of the prior Commission order and knowingly violating or willfully aiding and abetting any violation of any other order of the Commission;
2) bars him from applying for registration, or claiming exemption from registration, with the CFTC in any capacity and from acting in a registered capacity for a two-year period from the date of the order; and
3) requires him to cooperate in the continuing prosecution of this action.
On November 23, 1999, U. S. District Judge Patricia A. Seitz of the U.S. District Court for the Southern District of Florida entered a judgment and order granting final judgment by default and injunctive relief and imposing civil monetary penalties against defendants Hartford, Stewart, and Marchiano (see CFTC News Release 4347-99, December 9, 1999). The CFTC’s litigation in the case continues against the remaining defendant Valletta.
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