Aaron Rischall filed an application to become registered as a floor broker and floor trader. On October 7, 2009, NFA’s President issued a Notice of Intent to Deny Registration (Notice of Intent) to Rischall. The Notice of Intent alleged that on October 29,2004, in the Dane County, Wisconsin Circuit Court, in Wisconsin v. Rischall, Case No. 2004CF001378, Rischall pled no contest to one count of knowingly delivering a controlled substance (tetrahydrocannabinols), a class 1 felony offense. The Notice of Intent charged that Rischall’s plea of no contest to a felony offense may disqualify him from registration under Section Ba(3)(H) of the Commodity Exchange Act (Act), 7 U.S.C. S 12a(3)(H) (2000).
In addition, the Notice of Intent alleged that Rischall failed to disclose the fact that he pled no contest to a felony offense on his current registration application dated July 9, 2009. The Notice of Intent charged that Rischall’s failure to disclose this fact on his July 2009 application may disqualify him from registration under Section 8a(2)(G) of the Act, 7 U.S.C. S 12a(2)(G) (2000).
ln his Offer, without admitting or denying the allegations of the Notice of Intent, Respondent acknowledges service of the Notice of Intent, admits the jurisdiction of NFA with respect to the matters set forth in the Notice of Intent, waives a hearing, all post-hearing procedures, Commodity Futures Trading Commission and judicial review, and any objection to NFA staff’s participation in the consideration of this Offer by the Membership Committee or its designated Subcommittee, and stipulates that the record upon which this Final Order Granting Conditional Registration is granted consists solely of the Notice of Intent, the submissions made by Respondent in response thereto, and the findings contained in the Offer. On the basis of the consent evidenced by the Offer, and without any adjudication on the merits, the Subcommittee orders that Rischall’s floor broker/floor trader registration be hereby granted subject to the following conditions:
1. Respondent may not directly or indirectly act as a principal, partner, officer, director, or branch office manager of any entity registered or required to be registered with the Commission under the Act or regulations thereunder;
2. Respondent may not directly or indirectly exercise supervisory authority over any person registered or required to be registered with the Commission under the Act or regulations thereunder;
3. Respondent shall not serve on any disciplinary committee, arbitration panel, governing board or oversight panel of any self-regulatory organization (SRO) subject to regulation by the Commission;
4. Respondent shall not violate any provision of the Act, the regulations thereunder, the Final Order and this Offer or any exchange bylaws, rules, regulations or requirements; and
5. lf the Commission, NFA, any SRO, law enforcement or regulatory agency institutes a proceeding charging Respondent with any violation of the Aci, Commission regulations, NFA requirements, SRO rules, or any order, statute, rule, or regulation, Respondent will immediately notify NFA in writing of such action. NFA may, upon written notice to Respondent, immediately suspend Respondent’s registration without regard to the procedures set forth in NFA’s Registration Rules, pending the conclusion of the proceedings containing such charge. Respondent shall have the opportunity for a hearing promptly after the suspension, at which NFA would have the burden of showing (i) that Respondent has been charged with the violation referred to herein, and (ii) that Respondent’s continued registration is likely to pose a threat to the public interest or threatens to impair public confidence in any market regulated by the Commission.