Today the Seventh Circuit vacated a temporary restraining order that froze all assets of a commodity-pool operator.  The district court issued the TRO because the company failed to turn over records to the Commodity Futures Trading Commission.  The appeals court held that the TRO couldn’t last more than 20 days without a preliminary injunction hearing.  It also doubted that preventing customers from accessing their accounts reflected an appropriate response to a failure to produce documents.  Commodity Futures Trading Comm’n v. Lake Shore Asset Management Ltd., No. 07-2790 (7th cir. Aug. 9, 2007).

Barry Barnett

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