Proceedings

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

Administrative Proceedings Heard by an Administrative Law Judge who issues an Initial Decision Appeals To Commission To Federal Appellate Courts Part 10 of the Regulations

Available Administrative Remedies Section 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) 6(d) for any person 6b for registered entities

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

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 Must seek injunctive relief

Additional Forms of Equitable Relief Disgorgement Rescission Accounting Other by settlement

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.

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

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