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CFTC Instruction 604-1

Section a copy of the order and the last address of record of the respondent(s) required to pay the penalty(ies).

4.

The Operations and Budget Section sends the respondent(s) a
demand letter in conformity with 4 CFR 102.2 which advises the
respondent(s) of the amount due; the date by which payment
is to be made; the penalties, interest and administrative
charges assessed on delinquent claims; and directing the
respondent(s) to make payment by check or money order to be
sent to the Operations and Budget Section. Copies of this
letter are sent to the Enforcement Division and the proceedings
Clerk. (See Attachment 1).

5. When payment is received, the Operations and Budyet Section

forwards to the Enforcement Division and the proceedings Clerk
copies of the check with the docket number and the name of
the respondent noted thereon. The Operations and Builget
Section deposits each check proinptly, enters on its deposit
record the amount and date of each payment, the name of the
respondent inaking the payment and the docket number of the

case.

6. The Operations and Budget Section informs the Enforcement

Division and the proceedings Clerk at once when a check for payment is returned by the bank for nonpayment and promptly requests in writing that respondent(s) make immediate payment by certified check.

B. Delinquencies.

1.

If payment is not received within 30 days, the Operations
and Budget Section normally will send two progressively
stronger demand letters at not more than 30 day intervals.
(See Attachment 2 and 3). These letters will also include a
notice of assessment of interest, administrative costs and
penalty charges calculated in accordance with the provisions
of A CFR 102.13. Copies of these letters will be sent to the
Enforcement Division and the proceedings Clerk.
The Operations and Budyet Section may waive the sending of the
second or third demand letter if the Enforcement Division
believes that collection would be unlikely. The Operations
and Budget Section will then proceed as outlined in 2 below.
If payment is not made after receipt of the second or third
demand letter, the Operations and Budget Section will confer
with the Enforcement Division to determine whether the circum-

NOTE:

2.

CFTC Instruction 604-1

a.

The Enforceinent Division referring the case to the Attorney
General, giving due consideration to the directive in
4 CFR 105.1 that referrals ordinarily be made within one
year, and the five year time limit on such referrals

specified in 28 U.S.C. $2462.
b. A new administrative proceeding being instituted to seek

further sanctions against the respondent(s) for failure to
comply with a Commission order particularily if the debtor is
registered with CFTC or is trading on the contract Markets.
(See 4 CFR 102.9)

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The Operations and Budget Section, with the concurrence of
the Division of Enforcement, recommending to the Executive
Director the compromise of claims which do not exceed $20,000,
if there is sufficient reason to believe that collection of
the claim in full can not be accomplished and the recommen-
dations otherwise meet the requirements of 4 CFR Part 103.

C. Reporting.

1. On a quarterly basis the Operations and Budget Section and the

Enforcement Division will reconcile their records of civil
penalties assessed and paid.

2. The Operations and Budget Section will annually provide the

Executive Director with a report of the penalties assessed, collected and outstanding; noting any unreconciled differences between the records of Operations and Budget and Enforcement Division.

3. The Operations and Budget Section will prepare any periodic

reports of civil penalty collections as may be required by
the Department of the Treasury and the Office of Management

and Budget.
víí. MANUAL MAINTENANCE INSTRUCTIONS

This is a new instruction. It should be filed numerically in the Commodity

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On (Date) (Administrative Law Judge (Name) or the Commission) issued an (Fill in title as it appears on Order 1.e., Settlement; Default; Entry of Settlements, etc.) in the above-captioned case. That Order directed you to pay a civil penalty of (Amount Spelled Out) ($). within thirty (30) days of the effective date of the Order (or negotiated time specified in a settlement). Your payment, therefore, became due on (fill in date).

Failure to pay this civil penalty in full within 30) days from the date of this notice will subject you to a

% interest charge which accrues as of the date of this notice as provided in 31 U.S.C. 3717. That is the current rate of Interest prescribed by the U.S. Treasury. You will also be assessed actual administrative costs to cover the processing and handling of a delinquent claim. In addition, failure to pay the civil penalty in full by (fill in date that is 91 days after payment became due) will subject you to a penalty charge of not more than 6 percent on any unpaid portion, in accordance with 31 V.S.C. 3717.

Payment may be made by money order, certified check, or personal check made payable to the Commodity Futures Trading Commission and sent to:

Commodity Futures Trading Commission
Operations & Bud yet Section, Room 712
2033 K Street, N.W.
Washington, D.C. 20581

Failure to obey the Commission's Order 18 a violation of the Commodity Exchange Act and could lead to the institution of further enforcement action a gainst you, including but not limited to action under section 6(b) of the Act, 1 U.S.C. § 9 (1982). If you are registered with the Commission, among other sanctions the Commission could seek to suspend or revoke your registration under section 6(b) of the Act, 7 U.S.C. $ 9 (1982).

You should also be aware that Section 6(d) of the Act, 7 U.S.C. $9a (1982), authorizes the Commission to refer matters involving non-payment of civil penalties to the Attorney General of the United States for collection. Such collection may involve the commencement of legal proceedings against you in federal district court.

Sincerely,

G. H. BANISTER
Director
Operations and Budget Section

Enclosure:

(Fill in title as it appears on Order), CFTC Docket No.

It should

*Notice of clain mint be mailed on the same day it is dated.

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This is the second notice advising you that on (Date) (Ada nistrative Law Judge (Name) or the Commission) 1ssued an (F111 in title as 1c_<ppears on Order 1.e., Settlement; Default; Entry of Settlements, etc.) directia, you to pay a civil penalty of (Amount Spelled Out) ($) by (fill in date).

Your failure to pay this civil penalty in full by (Pill in date of first notice of clain) has subjected you to a % Interest charge as provided in 31 U.S.C. 3717. You will also be assessed actual administrativi costs to cover the processing and handling of a delinquent claim. In adlition, failure to pay the civil penalty in full by (f111 in date that is 91 da 's after payment beca me due) will subject you to a penalty charge of not more than 6 percent on any unpaid portion, in accordance with 31 U.S.c. 3717.

Payment may be made by money order, certified check, or pe 'sonal check made payable to the Commodity Futures Trading Commission and se it to:

Commodity Futures Trading Commission
Operations á Bud get Section, Room 712
2033 K Street, N.W.
Washington, D.C. 20581

Your failure to obey the Commission's Order is a violation of the Commodity Exchange Act and could lead to the institution of further enfor ement action against you, including but not limited to action under section (b) of the Act, 7 U.S.C. $ 9 (1982). If you are registered with the Comuni ision, among other saictions the Corami ssion could seek to suspend or revoke our registration und:r section 6(b) of the Act, 7 U.S.C. $9 (1982).

As you are also aware, Section 6(d) of the Act, 7 U.S.c. S'a (1982), authorizes the Commission to refer matters involving non-pay men

of civil penalties to the Attorney General of the United States for coll:ction. Such collection may involve the commencement of legal proceedings agiinst you in federal district court.

Sincerely,

G. H. BANISTER
Director
Operations and Bud get Section

Enclosur?:

(1111 in title as it appears on Order), CFTC Docket No.

I: should

*Notice of claim must be mailed on the same day it is dated.

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This is the third notice advising you that on (Date) (Administrative Law Judge (Name) or the Commission) issued an (Fill in title as it appears on Order 1.e., Settlement; Default; Entry of Settlements, etc.) directing you to pay a civil penalty of (Amount Spelled Out) ($). by (fill in date).

Your failure to pay this civil penalty in full by (Fill in date of first notice of claim) has subjected you to a % interest charge as provided in 31 U.S.C. 3717. You will also be assessed actual administrative costs to cover the processing and handling of a delinquent claim. In addition, your failure to pay the civil penalty in full by (f111 in date that is 91 days after payment became due) has subjected you to a penalty charge of (fill in amount that is 6 percent of the unpaid portion), in accordance with 31 V.S.C. 3717.

Payment may be made by money order, certified check, or personal check made payable to the Commodity Futures Trading Commission and sent to:

Commodity Futures Trading Commission
Operations & Bud get Section, Room 712
2033 K Street, 1.W.
Washington, D.C. 20581

Your failure to obey the Commission's Order is a violation of the Commodity Exchange Act and could lead to the institution of further enforcement action against you, including but not limited to action under section 6(b) of che Act, 7 0.9.c. $ 9 (1982). If you are registered with the Commission, among other gancions the Commission could seek to suspend or revoke your registration under section 6(b) of the Act, 7 U.S.C. § 9 (1982).

As you are also aware, Section 6(d) of the Act, 7 U.S.C. 59. (1982), authorizes the Commission to refer matters involving non-payment of civil penalties to the Attorney General of the United States for collection. Such collection may involve the commencement of legal proceedings against you in federal district court.

Sincerely,

G, H. BANISTER
Director
Operations and Budget Section

Enclosure:

(Fill in title as it appears on Order), CFTC Docket No.

It should

*Notice of claim wst be mailed on the same day it is dated.

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