CFTC Obtains $140,000 Judgment Against Lincolnshire Trading Parters

CFTC Obtains $140,000 Judgment Against Lincolnshire Trading Parters

The U.S. Commodity Futures Trading Commission (CFTC) today announced that it has obtained a judgment against defendants Lincolnshire Trading Partners, LLC (Lincolnshire) and its president, Scott Geisinger, both of Pomona, California. The default judgment and permanent injunction order were entered by Judge Percy Anderson of the U.S. District Court for the Central District of California. The defendants are now barred from trading and registering, and they must pay a civil monetary penalty of $140,000.

From the CFTC Statement:

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.

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About The Author


Felix Shipkevich

Felix Shipkevich

Mr. Shipkevich’s practice focuses on regulatory, transactional, and enforcement matters in the fields of futures, commodities, and derivatives. He works with Futures Commission Merchants (FCMs), Retail Forex Exchange Dealers (RFEDs), Introducing Brokers (IBs), Commodity Pool Operators (CPOs), Commodity Trading Advisors (CTAs), Swap Dealers (SDs), Swap Execution Facilities (SEFs), and domestic and offshore hedge funds. Mr. Shipkevich guides clients on procedures related to registration with the U.S. Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), as well as domestic and international regulators in local jurisdictions. Mr. Shipkevich prepares and helps implement compliance, anti-money laundering (AML), and Electronic Trading Systems (ETS) procedures for clients in the commodities and derivatives fields.

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