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Waltuch v. Conticommodity Services, Inc.
Citation:
88 F.3d 87 (1996)Facts
As vice-president and chief metals trader for Conticommodity Services, Inc., Waltuch traded silver for the firm’s clients. In early 1980, the silver price spiked upward as the then-billionaire Hunt brothers and several of Waltuch’s foreign clients bought huge quantities of silver futures contracts. Between 1981 and 1985, angry silver speculators filed numerous lawsuits against Waltuch and Conticommodity, alleging fraud, market manipulation, and antitrust violations. All of the suits eventually settled. Waltuch himself was dismissed from the suits with no settlement distribution. Waltuch was also subject of an enforcement proceeding brought by the CFTC, charging him with fraud and market manipulation. The proceeding was settled. Waltuch then brought suit against Conticommodity and its parent company for indemnification of his unreimbursed expenses.
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