U.S. Commodity Futures Trading Commission, Plaintiffv.Michael S. Wright and Wright Time Capital Group LLC (d/b/a Global FX Club), Defendants
MEMORANDUM ORDER Plaintiff U.S. Commodity Futures Trading Commission (“Plaintiff” or “CFTC”), an independent federal regulatory agency charged by Congress with the administration and enforcement of the Commodities Exchange Act (the “Act”), 7 U.S.C. §1 et seq., brings this civil action against Defendants Michael S. Wright (“Wright”) and Wright Time Capital Group, LLC (“WTCG”), asserting claims for: (1) commodities futures fraud in violation of sections 4b(a)(2)(A)-(C) of the Act, 7 U.S.C. §§6b(a)(2)(A)-(C), and retail foreign currency fraud in violation of 17 C.F.R. section 5.2(b); (2) commodities pool operator (“CPO”) fraud in violation of section 4o(1) of the Act, 7 U.S.C. §6o(1); (3) failing to register as a CPO in violation of sections 2(c)(2)(C)(iii)(I)(cc) and 4m(1) of the Act, 7 U.S.C. §§2(c)(2)(C)(iii)(I)(cc), 6m(1), and 17 C.F.R. section 5.3(a)(2); and (4) engaging in prohibited activities in violation of 17 C.F.R. sections 4.20(a)-(c). After reaching a settlement with Wright, who was WTCG’s CEO and chief strategist, the CFTC moved, pursuant to Federal Rule of Civil Procedure 55, for default judgment against WTCG, which has not appeared or otherwise responded to the claims asserted against it in this action. (Docket entry no. 31.) The Court has jurisdiction of this action pursuant to section 6c(a) of the Act, 7 U.S.C. §13a-1, and 28 U.S.C. section 1331.The Court has considered Plaintiff’s submissions carefully and, for the following reasons, Plaintiff’s unopposed motion is granted.BACKGROUNDThe following facts are drawn from proffered evidence and Plaintiff’s Complaint, the well-pleaded allegations of which are taken as true for the purpose of this motion practice. From approximately August 2010 to June 2017, WTCG purported to operate as a CPO by soliciting funds from investors, pooling the funds together, and using the pooled funds to trade in the foreign exchange (“forex”) markets. (Compl., docket entry no. 1
