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Suspension Period
Individual Amount of Fine (business days)
Petitioner $75,000 10
Mr. Lowrance 200,000 30
Mr. Maloney 25,000 5
Mr. Elliott 100,000 30
The fines and suspensions noted above were the only
sanctions imposed for the conduct that formed the basis for the
CME charges against petitioner and the others.
During 1989, petitioner paid $75,000 to the CME (sometimes
hereinafter referred to as the CME fine) in satisfaction of the
monetary sanction imposed on him. Petitioner's payment of the
fine did not provide him with any future right or economic
benefit other than the right to continue to exercise his rights
as a member of the CME and the right to retain and hold his
membership interest.
Had petitioner failed or refused to pay the fine within the
time allowed by the CME rules, he would have been denied the
right to trade on the floor of the CME. Moreover, if a member
fails to pay a fine within the prescribed time, the CME may,
inter alia, sell the member's seat and apply the proceeds against
the unpaid fine. By settling the charges against him, petitioner
avoided protracted litigation concerning his conduct and was able
to resume his business activities without further disruption.
During relevant times, it was a common occurrence for the
CME to fine members for violations of its rules, and a list of
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Last modified: May 25, 2011