Stephen Bronte, Advisors, LLC v. Commodities Futures Trading Commission

MEMORANDUM *

Petitioner Steven Bronte appeals a Commodities Futures Trading Commission (“CFTC”) order revoking his registration. Because the CFTC reasonably interpreted “other good cause” to include lying under oath, and because the CFTC did not violate Bronte’s due process rights, we affirm the order of the CFTC.

The National Futures Association (“NFA”), charged with licensing traders such as Bronte, initiated revocation proceedings on the basis of false statements Bronte made under oath during a child support proceeding. These statements, if true, would have revealed violations of the Commodity Exchange Act (the “Act”). After investigation, however, the NFA concluded that Bronte had not told the truth and that his business practices were, in fact, in accordance with the requirements of the Act. But, at the same time, the NFA concluded that Bronte had made false statements in the child support proceeding.

Section 8a(3)(M) of the Act permits the CFTC to revoke the registration of an individual for “other good cause.” The CFTC has consistently interpreted that provision to include “lack of honesty,” and has issued an interpretive statement providing that such dishonest…