This page has been archived and commenting is disabled.

1 of the 2 Administrative Judges at the Commodity Futures Trading Commission Vowed NEVER to Let a Complainant Win. He's Kept His Promise for 20 Years

George Washington's picture




 

Washington’s Blog

The Commodity Futures Trading Commission (CFTC) is an important agency. It is largely responsible for regulating derivatives and other important instruments.

It is supposed to prevent and prosecute fraud.

So it is stunning that one of the two administrative judges for the CFTC has written and filed a "Notice and Order" saying:

There are two administrative law judges at the Commodity Futures Trading Commission: myself and the Honorable Bruce Levine. On Judge Levine's first week on the job, nearly twenty years ago, he came into my office and stated that he had promised Wendy Gramm, then Chairwoman of the Commission, that we would never rule in a complainant's favor. A review of his rulings will confirm that he has fulfilled his vow. Judge Levine, in the cynical guise of enforcing the rules, forces pro se complaints to run a hostile procedural gauntlet until they lose hope, and either withdraw their complaint or settle for a pittance, regardless of the merits of the case.

***

In light of these unfortunate facts, if I simply announced my intention to retire, the seven reparation cases on my docket would be reassigned to the only other administrative law judge of the Commission, Judge Levine. This I cannot do in good conscience. Accordingly, I recommend that the Commission request ... the services of an administrative law judge to be detailed to the Commission from [another] agency ....

 

 

 

Wendy Gramm is the wife
of former Senator Phil Gramm (one of the main sponsors of the
Commodities Futures Modernization Act 2000, which kept derivatives
largely deregulated), and was heavily involved in the Enron scandal (see
this and this).

Update:  The Wall Street Journal has a piece
out today claiming that Judge Painter is senile and more than a little
nuts.  I don't know whether or not that is true.  But the 2000 Wall
Street Journal article which Painter attaches to his Notice and Order
does seem to show that - at least as of 2000 - Levine always ruled
against the Complainant in cases where the Respondent showed up.

Judge Painter's claims can easily be
checked by reporters by searching the CFTC database, and by speaking
with Complainants who appeared before Judge Levine. You can start here.

H/t Karl Denninger and Daily Bell.

 

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 10/20/2010 - 21:04 | 665772 Al Gorerhythm
Al Gorerhythm's picture

Washington, DC, AKA....Congress.

Wed, 10/20/2010 - 20:19 | 665677 Gubbmint Cheese
Gubbmint Cheese's picture

I sent this to Ron Paul and asked how it was possible for this to go on unquestioned. Perhaps it needs to be sent EVERYWHERE by everyone. I sent it to Ron Paul as I'm Canadian and don't know WHO to send questions like this to - and Paul seems to be one of the only guys I know who asks tough questions (Grayson is the other.. but truth be told he kinda scares me... )

 

Wed, 10/20/2010 - 20:14 | 665664 tmosley
tmosley's picture

This man should be hung from a balcony, guts out.

Wed, 10/20/2010 - 20:09 | 665656 Bob
Bob's picture

What, a Judge who took an oath and actually kept it? 

I didn't know it was possible. 

Oh, wait a minute . . .

Wed, 10/20/2010 - 20:10 | 665655 Chippewa Partners
Chippewa Partners's picture

Such a sordid tale in so many ways.

The public getting bent over.

Over and over and over.  Hey, what's a couple of decades between friends?     

 

Wed, 10/20/2010 - 19:53 | 665619 Lord Lucan
Lord Lucan's picture

So why in God's name did he wait 20 years to bring this to light? He announces it now just as he swans off to the golf course.

Both need to be held responsible for this disgrace. Will never happen though as there will be a legal body sitting above them which has vowed never to take action against their own.

 

Wed, 10/20/2010 - 23:11 | 665965 Mad Max
Mad Max's picture

Administrative law judges have relatively short, fixed terms, subject to renewal.  They don't have life tenure like federal judges.  So they can effectively be fired for not doing what the administration wants, albeit not immediately.  And judges, while very well compensated compared to the average citizen, make peanuts compared to partners in Biglaw firms, which is chump change compared to Wall Street.  This guy may very well have needed the job and the money that came with it.  I think it takes a lot of courage for him to come out and make such a statement now.

Yes, everyone should always do the right thing, whatever the cost, but how many people actually do?

Wed, 10/20/2010 - 20:54 | 665747 Sancho Ponzi
Sancho Ponzi's picture

"Evil will triumph if good people sit back and do nothing"

Wed, 10/20/2010 - 20:26 | 665688 ILikeBoats
ILikeBoats's picture

The judge gets himself a big fat pension... while selling out as an accomplice how many and their families... both him, and Levine, should face the severest consequences and their families should be bankrupted as well.

Thu, 10/21/2010 - 00:27 | 666079 still kicking
still kicking's picture

so he comes clean 15 years ago, gets railroaded out and they put in another stooge just like the other guy?  He did the right thing, stayed in and did what good he could, and now that he is breathing his last professional breath he basically says fuck you all you rat bastards! 

I say well played sir!

Wed, 10/20/2010 - 19:40 | 665590 carbon based unit
carbon based unit's picture

there are those who have accused this carbon based unit of being dense ... i don't think "diamonds for brains" was meant to be complimentary ... but am i beginning to sense a pattern?  CFTC judge who pre-judges his cases.  attorneys general who don't prosecute massive fraud.  regulators who don't regulate.  legislators who don't legislate.

 

oh wait ... that last one wasn't entirely true.  it seems we'd be better off if legislators didn't legislate.  it appears all they've done is carefully craft the loopholes needed by the cartels.

Thu, 10/21/2010 - 00:52 | 666112 carbonmutant
carbonmutant's picture

The MSM is reporting that Congress could be facing Gridlock if voters try to change things...  no more bailouts and Health Tax bills.

Wed, 10/20/2010 - 20:34 | 665699 Duuude
Duuude's picture

 

 

Cartels.

 

++++

 

 

Wed, 10/20/2010 - 19:27 | 665563 svendthrift
svendthrift's picture

My god.

Wed, 10/20/2010 - 22:19 | 665881 e_goldstein
e_goldstein's picture

yeah. exactly.

Wed, 10/20/2010 - 20:39 | 665702 GoldSilverDoc
GoldSilverDoc's picture

As has been said many times before, when TSHTF,  there will be a quick "trial", followed by a pockmarked wall, waiting for hundreds (thousands?) of government parasites like these (both).  Let us hope they last long enough to grace it with their presence.

Thu, 10/21/2010 - 01:03 | 666131 jeff montanye
jeff montanye's picture

i vote against the pockmarked wall and for making distinctions where these judges are not regarded as equivalent.  levine seems the villain and painter a bit (just) of a help.  not that anyone cares.  if things are just a test of brute strength we will continue to lose.

Thu, 10/21/2010 - 10:26 | 666629 GoldSilverDoc
GoldSilverDoc's picture

Ok, so Levine is a villain, and Painter is an enabler.  

So let's see.  The guards at Treblinka who actually poured IN the Zyklon should be against the wall, but the fellow who was in charge of ordering it... not so much.

Oh, wait.  Neither, according to you.  Both should be... given the Iron Cross for "doing their duty".  Or maybe only Painter.  The other guy, well, he probably should get counseling?

Got it.  

And thanks for reinforcing the idea that even here on Zerohedge, there are plenty of government-school-educated zombies lurking about.  

Do NOT follow this link or you will be banned from the site!