Laws: Cases and Codes : U.S. Code : Title 7 : Section 9


   
U.S. Code as of: 01/03/05
Section 9. Exclusion of persons from privilege of registered entities; procedure for exclusion; review by court of appeals

      If the Commission has reason to believe that any person (other
    than a registered entity) is manipulating or attempting to
    manipulate or has manipulated or attempted to manipulate the market
    price of any commodity, in interstate commerce, or for future
    delivery on or subject to the rules of any registered entity, or
    has willfully made any false or misleading statement of a material
    fact in any registration application or any report filed with the
    Commission under this chapter, or willfully omitted to state in any
    such application or report any material fact which is required to
    be stated therein, or otherwise is violating or has violated any of
    the provisions of this chapter or of the rules, regulations, or
    orders of the Commission or the Commission (!1) thereunder, it may
    serve upon such person a complaint stating its charges in that
    respect, which complaint shall have attached or shall contain
    therein a notice of hearing, specifying a day and place not less
    than three days after the service thereof, requiring such person to
    show cause why an order should not be made prohibiting him from
    trading on or subject to the rules of any registered entity, and
    directing that all registered entities refuse all privileges to
    such person, until further notice of the Commission, and to show
    cause why the registration of such person, if registered with the
    Commission in any capacity, should not be suspended or revoked.
    Said hearing may be held in Washington, District of Columbia, or
    elsewhere, before the Commission, or before an Administrative Law
    Judge designated by the Commission, which Administrative Law Judge
    shall cause all evidence to be reduced to writing and forthwith
    transmit the same to the Commission. Upon evidence received, the
    Commission may (1) prohibit such person from trading on or subject
    to the rules of any registered entity and require all registered
    entities to refuse such person all trading privileges thereon for
    such period as may be specified in the order, (2) if such person is
    registered with the Commission in any capacity, suspend, for a
    period not to exceed six months, or revoke, the registration of
    such person, (3) assess such person a civil penalty of not more
    than the higher of $100,000 or triple the monetary gain to such
    person for each such violation (!2) and (4) require restitution to
    customers of damages proximately caused by violations of such
    persons. Notice of such order shall be sent forthwith by registered
    mail or by certified mail or delivered to the offending person and
    to the governing boards of said registered entities. After the
    issuance of the order by the Commission, the person against whom it
    is issued may obtain a review of such order or such other equitable
    relief as to the court may seem just by filing in the United States
    court of appeals of the circuit in which the petitioner is doing
    business, or in the case of an order denying registration, the
    circuit in which the petitioner's principal place of business
    listed on petitioner's application for registration is located, a
    written petition, within fifteen days after the notice of such
    order is given to the offending person praying that the order of
    the Commission be set aside. A copy of such petition shall be
    forthwith transmitted by the clerk of the court to the Commission
    and thereupon the Commission shall file in the court the record
    theretofore made, as provided in section 2112 of title 28. Upon the
    filing of the petition the court shall have jurisdiction to affirm,
    to set aside, or modify the order of the Commission, and the
    findings of the Commission as to the facts, if supported by the
    weight of evidence, shall in like manner be conclusive.





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