7 U.S.C. § 6o — Fraud and misrepresentation by commodity trading advisors, commodity pool operators, and associated persons

submitted 104 years ago by Pub. L. 93-463 to r/title-7-AGRICULTURE · 223 words · no verdicts yet

in plain englishAI-generated · not legal advice

Commodity trading advisors, pool operators, and their associated persons can't defraud or deceive clients or participants using the mail or interstate commerce. They also can't falsely claim the government has sponsored, recommended, or approved them or vetted their qualifications. Truthfully stating that you're registered under this law is allowed.

(1) It's illegal for a commodity trading advisor, an associated person of one, a commodity pool operator, or an associated person of one — using the mail or any tool of interstate commerce — to: (A) use any device, scheme, or trick to defraud a client, participant, or prospective client or participant; or (B) run any transaction, practice, or line of business that works as a fraud or deception on a client, participant, or prospective client or participant. (2) It's also illegal for any of these registered people to claim or imply — in any way — that the United States or one of its agencies or officers has sponsored, recommended, or approved them, or has reviewed their abilities or qualifications. But this doesn't stop someone from truthfully saying they're registered under this chapter as one of these roles, as long as the statement is accurate and doesn't misrepresent what registration actually means.

the actual law source: uscode.house.gov ↗public domain

(1)

It shall be unlawful for a commodity trading advisor, associated person of a commodity trading advisor, commodity pool operator, or associated person of a commodity pool operator, by use of the mails or any means or instrumentality of interstate commerce, directly or indirectly—

(A)

to employ any device, scheme, or artifice to defraud any client or participant or prospective client or participant; or

(B)

to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or participant or prospective client or participant.

(2)

It shall be unlawful for any commodity trading advisor, associated person of a commodity trading advisor, commodity pool operator, or associated person of a commodity pool operator registered under this chapter to represent or imply in any manner whatsoever that such person has been sponsored, recommended, or approved, or that such person’s abilities or qualifications have in any respect been passed upon, by the United States or any agency or officer thereof. This section shall not be construed to prohibit a statement that a person is registered under this chapter as a commodity trading advisor, associated person of a commodity trading advisor, commodity pool operator, or associated person of a commodity pool operator, if such statement is true in fact and if the effect of such registration is not misrepresented.

Source credit: (Sept. 21, 1922, ch. 369, § 4o, as added Pub. L. 93–463, title II, § 205(a), Oct. 23, 1974, 88 Stat. 1399; amended Pub. L. 95–405, § 10, Sept. 30, 1978, 92 Stat. 870; Pub. L. 97–444, title II, § 214, Jan. 11, 1983, 96 Stat. 2305.)

history & why it existsrecord from the source credit

1922Enacted · Pub. L. 93-463 · 88 Stat. 1399
1978Amended · Pub. L. 95-405 · 92 Stat. 870
1983Amended · Pub. L. 97-444 · 96 Stat. 2305

A history note hasn’t been published yet. The record shows enactment by Pub. L. 93-463 on 1922-09-21.

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