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CFTC v. Monex Credit Co.

United States District Court for the Central District of California

May 1, 2018, Decided; May 1, 2018, Filed

SACV 17-01868 JVS (DFMx)

Opinion

 [*1177]  CIVIL MINUTES - GENERAL

Proceedings: (IN CHAMBERS) (Corrected May 17, 2018) Order Granting Defendants' Motion to Dismiss; Denying Plaintiff's Motion for Preliminary Injunction as Moot; and Denying Defendant's Motion to Exclude CFTC's Expert Report of Dr. Robert D. Salvaggio as Moot

Before the Court are three motions.

First, Defendants Monex Deposit Company, Monex Credit Company, Newport Services Corporation (collectively, "Monex"), Michael Carabini, and Louis Carabini (the "Individual Defendants" and, with Monex, "Defendants") move to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) Plaintiff Commodity Futures Trading Commission's ("CFTC") Complaint. (Notice of Motion to Dismiss ("MTD"), Docket No. 40; Mem. re MTD, Docket No. 41-1.) The CFTC filed an opposition. (Opp'n to MTD, Docket No. 164.) Defendants filed a reply. (Reply re MTD, Docket No. 180.)

For the following reasons, the Court grants the motion to dismiss.

Second, the CFTC filed a motion for preliminary injunction pursuant to § 6c(a) of the Commodity Exchange Act ("CEA"), 7 U.S.C. § 13a-1(a). (Mot. for Preliminary Injunction ("PI"), Docket No. 6.) Defendants opposed. (Opp'n to [**2]  Mot. for PI, Docket No. 166.) The CFTC replied. (Reply re Mot. for PI, Docket No. 177.)

For the following reasons, the Court denies the motion for preliminary injunction as moot.

Third, Defendants filed a motion to exclude the evidence of the CFTC's expert Dr. Robert D. Selvaggio pursuant to Federal Rule of Evidence 702 and Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579, 113 S. Ct. 2786, 125 L. Ed. 2d 469 (1993). (Motion to Exclude ("MTE"), Docket No. 154.) The CFTC opposed. (Opp'n to MTE, Docket No. 165.) Defendants replied. (Reply re MTE, Docket No. 175.)

For the following reasons, the Court denies the motion to exclude as moot.

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311 F. Supp. 3d 1173 *; 2018 U.S. Dist. LEXIS 135429 **

Commodity Futures Trading Commission v. Monex Credit Company, et al.

Subsequent History: Reversed by, Remanded by, Motion granted by United States CFTC v. Monex Credit Co., 2019 U.S. App. LEXIS 22181 (9th Cir. Cal., July 25, 2019)

CORE TERMS

delivery, commodity, manipulation, customers, metals, retail, margin, deceptive, leveraged, financed, precious, depositories, swap, interstate, commerce, Reply, unambiguously, fraudulent, third-party, injunction, liquidated, notice, seller, buyer, moot