CFTC granted Entry of Default against Changes Trading
Timothy Baggett and Kimball Parker failed to respond to the lawsuit. The CFTC subsequently filed for an Entry of Default which was granted against both defendants last month.
The CFTC had also sought an Entry of Default against Changes Worldwide and Changes Worldwide. Owing to procedural issues however, the motions were denied.
The CFTC filed a renewed motion for Entry of Default against Changes Worldwide and Changes Trading on November 21st.
The original reason the motions were denied was because the clerk wasn’t satisfied with how the lawsuit was served.
A sworn affidavit by a CFTC Senior Trial Attorney, attached an exhibit to the renewed motion, sought to clarify the matter;
The Clerk denied without prejudice the CFTC’s request to default Changes Worldwide and Changes Trading on the basis that there was no evidence that Mr. Baggett’s co-resident was authorized to accept service on behalf of Changes Worldwide and Changes Trading.
Citing the Federal Rules of Civil Procedure, the attorney argued
service on an individual may be effected, inter alia, by following state law for serving a summons in the state where the district court is located or where service is made.
For Changes Worldwide and Changes Trading, service was made in Florida.
Changes Worldwide and Changes Trading are both Florida LLCs.
State law for serving summons in Florida specifies that, if the address provided for the agent, member, or manager of an LLC is a residence or private mailbox, service on the LLC may be made by serving the registered agent, member, or manager of the LLC in the same manner as service on an individual.
Under Florida law, service on an individual may be effected by leaving the copies of process and the complaint at the individual’s usual place of abode with any person residing therein who is 15 years of age or older and informing the person of their contents.
Because the address served was a residential address, the CFTC attorney essentially argues that service on Changes Trading and Changes Worldwide was proper.
This satisfied the court clerk, who entered a default certificate on November 22nd.
Pending an objection by Baggett or Parker, the next filing in the case will be a request for default judgment by the CFTC. This will peg a dollar value in damages to the case and pave the way for recovery.