Robert D. Morris v. Commodity Futures Trading Commission, Stotler and Company S. Bruce Pattison Stephen Greenfield, Intervenors

Petitioner Robert D. Morris (“Morris”) appeals the ruling of the Commodity Futures Trading Commission (“CFTC”) reversing the initial decision of an Administrative Law Judge (“AU”) which had awarded Morris $185,500.00 in damages for his reparations complaint against Respondents Stotler & Co., Stephen D. Greenfield, and Bruce Pattison (collectively “Respondents”) for fraudulent inducement, unauthorized trading, churning and failure to supervise. Morris challenges the validity of the CFTC’s ruling under the Administrative Procedures Act (A.P.A.), and the CFTC’s findings that he failed to sustain his fraudulent inducement and churning claims. We affirm the CFTC’s ruling.

I. BACKGROUND

In 1983, Morris, a physician, was solicited by Respondent Stephen D. Greenfield, an employee of Respondent Bruce Pattison’s investment company, to open a commodity futures account with Respondent Stotler & Co. Even though he had previously lost approximately $200,000.00 trading precious metals, Morris agreed to open a non-discretionary futures trading account at Stotler & Co., with Greenfield acting as his account executive and Pattison supervising Greenfield’s handling of the account. The activity in…