Commodity Futures Trading Commission v. Donelson

The Commodity Futures Trading Commission filed a civil enforcement action against a company that provided trade recommendations to customers in the commodities markets on a commission basis, charging the company and its officers, including its CEO, with fraud and other violations of commodities laws. The district court granted summary judgment to the CFTC against the company’s CEO on all but one count and he appealed. The Seventh Circuit affirmed in part and reversed in part, finding that the district court properly granted summary judgment on three fraud claims but reversed summary judgment on two claims dependent on whether defendant was required to register as a commodity trading advisor and remanded for further proceedings. (RIPPLE and SCUDDER, concurring)