1. Proceedings

2. The Legal Process • Administrative Proceedings • CFTC Administrative • Sec. 6(c), 6(d) and 6(e) of the Act • Part 10 of the Regulations • Civil Injunctive Proceedings • Federal District Court • Sec. 6c of the Act • Criminal Proceedings • Federal District Court

3. Administrative Proceedings • Heard by an Administrative Law Judge who issues an Initial Decision • Appeals • To Commission • To Federal Appellate Courts

4. Available Administrative RemediesSection 6 • Cease & Desist • Revocation or Suspension of Registration • Trading Prohibition • Restitution (Reg. 10.110 – 10.114) • Civil Monetary Penalty (Sec. 6(e)) • US $120,000 or 3 times monetary gain • Other Remedies by Settlement (Appendix A to Part 10)

5. Civil Injunctive Proceedings • Tried in United States District Court • Appeals to Federal Appellate Courts

6. Remedies Available in Federal Court Cases • Ex parte relief • Asset freeze • Prevent destruction of documents • Appointment of receiver • Injunction – Preliminary and Permanent • Civil monetary penalty

7. Additional Forms of Equitable Relief • Disgorgement • Rescission • Accounting • Other by settlement

8. Criminal Violations • All willful violations of the Commodity Exchange Act and the CFTC’s regulations are criminal violations, including market abuse provisions. • But no person shall be subject to imprisonment for the violation of any rule or regulation if such person proves that he had no knowledge of such rule or regulation.

9. Criminal Proceedings Prosecuted by the Department of Justice Tried in United States District Court Appeals to Federal Appellate Courts

10. Criminal Sanctions • Felonies are punishable by a fine of not more than US $1 million and imprisonment for not more than 5 years, or both. • Insider trading by Commission employee or exchange official: • US $500,000 or imprisonment for not more than five years, or both, together with the costs of prosecution