CFTC News Release 4472-00 (98-6564-Civ-Seitz)
For Release November 9, 2000
FLORIDA FEDERAL COURT ENTERS CONSENT ORDER OF PERMANENT INJUNCTION AGAINST GARY V. VALLETTA 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 November 3, 2000, United States 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 Gary V. Valletta of Jupiter, Florida. The order stems from a three-count complaint filed by the CFTC against Valletta and four other defendants in June 1998 alleging violations of a CFTC order and violations of registration, disclosure, and reporting requirements. (See CFTC News Release 4150-98, June 2, 1998.)
The CFTC’s June 1998 action against Valletta and the other defendants, Joseph J. Marchiano, Hartford Financial Group, Inc. (Hartford), Keri L. Stewart, and Glenn R. Taubman 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) of Hartford, a registered introducing broker (IB) located in Fort Lauderdale, Florida. The 1998 complaint also alleges that the listed principals and controlling persons of Hartford -- 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 CFTC 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. (See also CFTC News Release 4357-00, February 1, 2000.)
Without admitting or denying the allegations in the CFTC’s complaint, Valletta 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 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; and
2) bars him from, among other things, applying for 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.
On November 23, 1999, U.S. District Court Judge Sietz 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).
On January 21, 2000, defendant Taubman consented to the entry of an order of permanent injunction and two-year registration ban and agreed to cooperate with the CFTC in the continuing prosecution of the action (see CFTC News Release 4357-00).
The entry of this consent order against Valletta concludes the matter against all of the defendants charged in the CFTC’s complaint.
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