[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR14.7]

[Page 309-310]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 14_RULES RELATING TO SUSPENSION OR DISBARMENT FROM APPEARANCE AND 
 
Sec.  14.7  Finding of violation of Commodity Exchange Act or Federal 

securities laws in another proceeding.

    (a) Temporary suspension. The Commission, with due regard to the 
public interest, and without preliminary hearing, may by order 
temporarily suspend from appearing or practicing before it any person 
who, on or after the effective date of this rule has been by name:
    (1) Permanently enjoined by reason of his misconduct by any court of 
competent jurisdiction (i) whether by consent, default, upon summary 
judgment or after trial, in any action brought by the Commission based 
upon violations of any provision of the Commodity Exchange Act, as 
amended, or of the rules and regulations adopted thereunder, or (ii) 
after trial or upon summary judgment in any action brought by the U.S. 
Securities and Exchange Commission based upon any violation of the 
federal securities laws (15 U.S.C. 77a to 80b-20) or of rules and 
regulations adopted thereunder;
    (2) Found by any court of competent jurisdiction (whether by 
consent, default, upon summary judgment or after trial) in any action 
brought by the Commission to which he is a party, or found by the 
Commission (whether by consent, default, upon summary disposition or 
after hearing) in any administrative proceeding in which the Commission 
is a complainant and to which he is a party, to have committed, caused, 
or aided and abetted a violation of any provision of the Commodity 
Exchange Act, as amended, or of the rules and regulations promulgated 
under any of those statutes;
    (3) Found upon summary judgment or after trial by any court of 
competent jurisdiction in any action brought by the U.S. Securities and 
Exchange Commission to which he is a party, or found by the Securities 
and Exchange Commission, upon summary disposition or after hearing, in 
any administrative proceeding in which the Securities and Exchange 
Commission is a complainant and to which he is a party, to have 
committed, caused, or aided or abetted a violation of any provision of 
the federal securities laws (15 U.S.C. 77a to 80b-20) or of the rules 
and regulations adopted thereunder.

[[Page 310]]

    (b) Petition to lift suspension. Any person temporarily suspended 
from appearing and practicing before the Commission in accordance with 
paragraph (a) of this section may, within 30 days after service upon him 
of temporary suspension, petition the Commission to lift the temporary 
suspension. If no petition has been received by the Commission within 30 
days after service of the order by mail the suspension shall become 
permanent.
    (c) Consideration of petition. Within 30 days after the filing of 
the petition described in paragraph (b) of this section the Commission 
shall either lift the temporary suspension or set the matter down for 
hearing or both. After opportunity for hearing, the Commission may 
censure the petitioner or may disqualify the petitioner from appearing 
or practicing before the Commission for a period of time or permanently 
or may determine that no action is appropriate.
    (d) Hearing. A showing that the petitioner has been enjoined or has 
been found to have committed, caused or aided or abetted violations as 
described in paragraph (a) of this section, without more, may be a basis 
for censure or disqualification; that showing having been made, the 
burden shall then be on the petitioner to show why he should not be 
censured or disqualified. A petitioner will not be heard to contest any 
findings against him or admissions made by him in the judicial or 
administrative proceedings upon which the proposed censure or 
disqualification is based. A petitioner who has consented to the entry 
of a permanent injunction as described in paragraph (a)(1) of this 
section without admitting the facts set forth in the complaint shall 
nevertheless be presumed for all purposes under this section to have 
been enjoined by reason of the misconduct alleged in the complaint.