Commodity Futures Trading Commission v. Rivoire

Purpose of the statement

The court issued this supplemental statement under the Hague Convention of March 18, 1970, which provides procedures for obtaining evidence in civil or commercial matters across borders. The statement supplements the court’s January 27, 2022, letter of request for assistance from Hong Kong authorities. The request seeks testimony by videoconference from Stephen Tsang, a non-party witness identified as residing in Hong Kong.

Underlying case

The Commodity Futures Trading Commission, an independent federal regulatory agency, filed a civil complaint against Christophe Rivoire in December 2019. The complaint alleges violations of provisions of the Commodity Exchange Act and related regulations and seeks civil remedies. The statement says those remedies include injunctive relief, civil penalties, a trading and registration ban, restitution, and disgorgement.

The court explained that although the action has a regulatory character, it is a civil lawsuit under United States law and within the meaning of the Hague Convention. It is not a criminal prosecution. The statement notes that the case is governed by the Federal Rules of Civil Procedure, uses a preponderance-of-the-evidence standard, and does not expose the defendant to criminal sanctions such as imprisonment, probation, or a criminal fine. The statement also explains that the Commodity Futures Trading Commission is not authorized to bring criminal prosecutions for alleged Commodity Exchange Act violations; that authority belongs exclusively to the United States Department of Justice, which is not a party to this case.

Witness testimony and remote proceedings

The court stated that it had ordered all depositions in the matter to proceed remotely. Consistent with that order, Mr. Tsang’s deposition would be conducted by videoconference, with counsel for Mr. Rivoire and the Commodity Futures Trading Commission appearing from the United States. The statement also addresses the possibility that Mr. Tsang’s counsel could be unable to travel to Hong Kong because of COVID-19 travel and quarantine restrictions and could therefore appear remotely from the United States.

The court provided Hong Kong authorities with contact information for Mr. Tsang’s United States lawyer. It further stated that, if approval to execute the letter of request were granted, the lawyer would confer with Mr. Tsang about authorizing acceptance of service of process.

Disposition and scope

The opinion is a supplemental statement responding to questions from the Hong Kong Department of Justice about the requested evidence-gathering process. It does not state that the court decided the allegations against Mr. Rivoire or entered judgment on the claims. It also does not state in this text that Hong Kong approved execution of the letter of request.