Release: 4708-02 (CFTC Docket No. 02-13)
For Release: October 8, 2002
CFTC SETTLES ENFORCEMENT ACTION AGAINST FLOOR BROKER CHARGED WITH UNLAWFULLY TRADING COFFEE FUTURES
John Joyce Is Suspended For Three Months and Ordered to Pay $25,000 Penalty
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today that it has issued an order settling an action against John Joyce of North Arlington, New Jersey, who is registered with the CFTC as a floor broker. The order arises out of an administrative proceeding brought against Joyce and others in July 2002, which alleges that on certain dates, from January 2000 through October 2000, the respondents unlawfully executed coffee futures trades on the Coffee, Sugar & Cocoa Exchange (CSCE), a subsidiary of the New York Board of Trade (see CFTC News Release 4667-02, July 9, 2002).
The CFTC complaint, out of which the order arose, alleges that Joyce traded non-competitively and entered into illegal wash sales and accommodation trades by assisting other brokers in taking the opposite side of their customers’ orders. The complaint also alleges that Joyce cheated or defrauded, or willfully deceived a customer in connection with the execution of a customer order by aiding and abetting another broker in an illegal price change transaction. The complaint further alleges that, by engaging in noncompetitive trading, Joyce also reported prices on his trading cards, to his customers, and to the CSCE that were not bona fide because they had not been competitively executed.
Joyce, without admitting or denying the allegations contained in the complaint, or the findings contained in the order, consented to the issuance of the order, which finds that he violated the Commodity Exchange Act (CEA) and Commission regulations, as charged in the complaint. Pursuant to the order, Joyce must cease and desist from further violations of the CEA and CFTC regulations, is required to pay a civil monetary penalty in the amount of $25,000, and is subject to a three-month suspension of his floor broker registration.
The CFTC’s administrative action against the other respondents continues.
The following CFTC Division of Enforcement staff are responsible for the case: Richard Glaser, John Dunfee, Jason Gizzarelli, and Margaret Kanyan.
A copy of the CFTC’s order may be found at www.cftc.gov.
Richard Glaser, Acting Associate Director
CFTC Division of Enforcement
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