STATES' TWO-FOLD COMMODITIES ENFORCEMENT ROLE - STATE PARENS PATRIAE SUITS TO UPHOLD THE COMMODITY EXCHANGE ACT AND STATE PROSECUTIONS UNDER GENERAL CRIMINAL ANTIFRAUD STATUTES

• NCJ Number: 47506
• Journal: ECONOMIC CRIME DIGEST Volume: 4 Issue: 4 Dated: (MARCH-APRIL, 1978) Pages: 31-42
• Author(s): ANON
• Date Published: 1978
• Length: 12 pages
• Grant Number(s): 77 DF-99-0043
• Sponsoring Agency: US Dept of Justice
• Corporate Author: National District Attorneys Assoc
• Sale Source: National Institute of Justice/
• Language: English
• Country: United States of America
• Note: MEMORANDUM OF THE OFFICE OF THE GENERAL COUNSEL COMMODITY FUTURES TRADING COMMISSION

Annotation

THE STATE ROLE FOLLOWING PASSAGE OF THE COMMODITY FUTURES TRADING COMMISSION ACT OF 1974, WHICH PREEMPTED STATE REGULATION OF COMMODITY FUTURES TRADING AND RELATED ACTIVITIES, IS CONSIDERED.

Abstract

ALTHOUGH THE 1975 LAW EXPRESSLY CHARGES THE COMMODITY FUTURES TRADING COMMISSION WITH THE PRIMARY RESPONSIBILITY FOR PROTECTING THE PUBLIC AGAINST COMMODITY FRAUDS THROUGH ENFORCEMENT OF THE COMMODITY EXCHANGE ACT, THE STATES CONTINUE TO PLAY A ROLE IN PROTECTING THEIR CITIZENS AGAINST COMMODITY FRAUD. STATES MAY TAKE ACTION TO ENFORCE THE FEDERAL LAW UNDER THE DOCTRINE OF PARENS PATRIAE AND, CONSISTENT WITH THE FEDERAL REGULATORY SCHEME, MAY CONTINUE TO ENFORCE THEIR OWN GENERAL CRIMINAL ANTIFRAUD STATUTES. COURT CASES SUPPORTING THE PARENS PATRIAE ROLE ARE CITED. THE BENEFITS TO BE DERIVED THROUGH STATES' WILLINGNESS TO COORDINATE THEIR ENFORCEMENT EFFORTS WITH THE COMMISSION'S PROGRAM ARE POINTED OUT.