Bert Dohmen-Ramirez and Wellington Advisory, Inc. v. Commodity Futures Trading Commission and Ronald Ho

This is a petition for review of an order of the Commodity Futures Trading Commission (CFTC or Commission) issued in a reparations proceeding. The CFTC upheld the decision of its Administrative Law Judge (AU), made after a full hearing, that Wellington Advisory, Inc. and Bert Dohmen-Ramirez, Wellington’s president and owner, were liable for the fraudulent acts of their agent, Jon Handy, under 7 U.S.C. § 4 . Handy was found to have violated 7 U.S.C. § 6b, an anti-fraud provision of the Commodity Exchange Act (CEA), by trading the Wellington-managed commodities account of respondent Ronald Ho contrary to promises made by Dohmen-Ra-mirez to Ho, without disclosing this to Ho.

FACTS

Bert Dohmen-Ramirez is the president and owner of Wellington Advisory, Inc. of Honolulu. Both are registered with the CFTC as commodity trading advisors. Ronald Ho is a terminal agent at the Honolulu airport.

Occasionally Dohmen-Ramirez, representing Wellington, conducted seminars for prospective clients. In April 1979, Ho attended his first Wellington seminar. After the seminar, Ho signed up for a one year subscription to the Wellington Letter, an investment advisory letter written by…