January 18, 2013
CFTC Obtains Default Judgment against Lincolnshire Trading Partners, LLC and Scott Geisinger for Violating CFTC Registration Requirements
Defendants each ordered to pay a $140,000 civil monetary penalty and are permanently barred from any commodity-related activities
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that Judge Percy Anderson of the U.S. District Court for the Central District of California entered a default judgment and permanent injunction order against defendants Lincolnshire Trading Partners, LLC (Lincolnshire) and its president, Scott Geisinger, both of Pomona, Calif. The order requires Lincolnshire and Geisinger to each pay a $140,000 civil monetary penalty, imposes permanent trading and registration bans against them, and prohibits them from violating the Commodity Exchange Act (CEA) and CFTC regulations, as charged.
The court’s order, entered on January 10, 2013, stems from a complaint filed on August 29, 2012, charging the defendants with violating the CFTC’s registration requirements. The case is U.S. Commodity Futures Trading Commission v. Lincolnshire Trading Partners, LLC, et al, Civil Action No.12-7417 PA (VBKx) (see CFTC Press Release 6347-12).
The court’s order finds that from at least October 18, 2010, through the present, Lincolnshire, by and through its agent, Geisinger, exercised discretionary trading authority or obtained written authorization to exercise written trading authority over foreign currency (forex) trading accounts for or on behalf of persons that were not eligible contract participants, in retail, leveraged forex transactions. Lincolnshire and Geisinger conducted this activity without being registered with the CFTC or having a valid exemption from the requirement to register, the order finds. Lincolnshire’s actions were in violation of Section 2(c)(2)(C)(iii)(I)(bb) of the CEA, 7 U.S.C. § 2(c)(2)(C)(iii)(I)(bb) (2006 & Supp. IV 2011) and regulation 5.3(a)(3)(i), 17 C.F.R. § 5.3(a)(3)(i) (2012), the order finds.
Geisinger’s violations were based on his solicitation of clients or prospective clients to open discretionary accounts in retail, leveraged forex transactions, or supervision of any person so engaged, while associated with Lincolnshire as a partner, officer, employee, consultant or similar agent, without being registered with the CFTC as an Associated Person of Lincolnshire. Geisinger’s actions were in violation of Section 2(c)(2)(C)(iii)(I)(bb) of the CEA, 7 U.S.C. § 2(c)(2)(C)(iii)(I)(bb) (2006 & Supp. IV 2011) and regulation 5.3(a)(3)(ii), 17 C.F.R. § 5.3(a)(3)(ii) (2012), the order finds.
The CFTC thanks the U.S. Attorney’s office, Central District of California, and the UK Financial Services Authority for their assistance in this matter.
CFTC Division of Enforcement staff responsible for this case are Jason Mahoney, Timothy J. Mulreany, George Malas, Paul Hayeck, and Joan Manley.
Last Updated: January 18, 2013