For Release: April 9, 2003
CFTC Obtains Federal Court Order Freezing Assets of Defendant U.S. Securities & Futures Corp.
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) announced today that a federal district court in New York City issued an order freezing the assets and preventing the destruction of the books and records of defendant U.S. Securities & Futures Corp. (USSFC).
The order, entered April 2, 2003, stems from a CFTC complaint filed earlier that day, alleging that, since at least February 28, 2003, the defendant has fallen below the net capital requirements it must meet to continue doing business as a futures commission merchant (FCM) registered with the CFTC. The net capital requirements are designed to ensure customer protection and the financial stability of the marketplace. According to the complaint, the net capital violations follow several instances during the past year when USSFC triggered the CFTC’s “early warning” requirements and dangerously depleted its required assets.
The CFTC is seeking an injunction against the defendant, along with civil penalties.
Hearing on the CFTC’s Motion for a Preliminary Injunction Set for April 11
The Honorable Kimba M. Wood of the United States District Court for the Southern District of New York has set a hearing for the CFTC’s motion for a preliminary injunction for April 11, 2003, at 1:00 p.m.
The following Division of Enforcement staff members are responsible for this case: Beth R. Morgenstern, Karin N. Roth, Lenel Hickson, Jr.,and Stephen J. Obie.
A copy of the CFTC complaint and restraining order may be obtained at www.cftc.gov.
Media Case Enforcement Contact:
Stephen J. Obie
Associate Director and Regional Counsel
CFTC Division of Enforcement
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