CFTC News Release 4363-00 (CFTC Docket SD 00-01)
For Release February 16, 2000
CFTC FINDS CAPITAL INSIGHT BROKERAGE, INC. STATUTORILY DISQUALIFIED FROM REGISTRATION AND ISSUES ORDER ACCEPTING OFFER OF SETTLEMENT AND REVOKING CAPITAL INSIGHT’S REGISTRATION
WASHINGTON - The Commodity Futures Trading Commission (CFTC) announced that on February 16, 2000, it filed a Notice of Intent to Suspend, Restrict or Revoke Registration (Notice) against Capital Insight Brokerage, Inc. (Capital Insight), a California corporation, and simultaneously issued an Opinion and Order accepting Capital Insight’s offer of settlement and revoking Capital Insight’s registration as an introducing broker (IB).
The CFTC’s Notice alleges that Capital Insight is subject to disqualification from registration based on a consent order of permanent injunction and other equitable relief (consent order) entered against it on November 12, 1999.
The consent order, issued by the U.S. District Court for the Central District of California, arose out of a five-count civil injunctive complaint filed by the CFTC against Capital Insight, among others, in Commodity Futures Trading Commission v. S. Jay Goldinger and Capital Insight Brokerage, Inc., Civil No. 99-11543 WMB (BQRx), alleging that Capital Insight engaged in a trade allocation scheme, in violation of anti-fraud, registration, and record-keeping provisions of the Commodity Exchange Act (CEA) and Commission regulations (see CFTC News Release 4335-99, November 8, 1999). The consent order, among other things, enjoined Capital Insight from engaging in fraudulent activity in violation of sections 4b(a)(i)-(iii), 4c(b), 4o(1)(A) and (B) of the CEA and Commission regulation 33.10(a)-(c), and from acting in any capacity for which registration with the CFTC is required, including acting as an IB.
The CFTC’s Opinion and Order, accepting Capital Insight’s offer of settlement in the statutory disqualification proceeding, finds that Capital Insight is subject to statutory disqualification from registration with the CFTC under section 8a(2)(C) of the CEA, based on the permanent injunctions entered against it in the consent order, and revokes Capital Insight’s registration as an IB.