Commodity Futures Trading Commission v. Jack W. Savage

This appeal raises several questions regarding the proper interpretation of the Commodity Exchange Act (Act), 7 U.S.C. §§ 1-24 . Defendant-appellant Savage appeals from an order and judgment of permanent injunction entered on a motion for summary judgment. Savage was one of several defendants in an action brought by the Commodity Futures Trading Commission (CFTC) in the United States District Court for the Central District of California. Each of the other defendants have consented to permanent injunctions or have not pursued appeals. The district court on May 6,1977 permanently enjoined appellant Savage from engaging in future violations of antifraud, fictitious sale and commodity trading-advisor registration provisions of the Act. We note jurisdiction under 28 U.S.C. § 1291 and affirm in part, reverse in part, and remand for further proceedings.

I. BACKGROUND

A. Overview of the Commodity Exchange Act.

On October 23, 1974, to remedy perceived abuses in commodity transactions, Congress extensively amended the Commodity Exchange Act by enacting the Commodity Futures Trading Commission Act of 1974, Pub. L.No.93-463, 88 Stat. 1389 . The 1974 Act created the CFTC, an independent…