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December 16, 1983

In the Matter of an Application to Enforce an Administrative Subpoena of the COMMODITY FUTURES TRADING COMMISSION, Applicant,
Naji Robert NAHAS, Respondent

The opinion of the court was delivered by: PENN

 JOHN GARRETT PENN, District Judge.

 This matter comes before the Court *fn1" on a motion by the Commodity Futures Trading Commission ("CFTC" or "Commission") to hold respondent Naji Robert Nahas ("Nahas") in civil contempt and to impose sanctions *fn2" for failure to comply with a September 14, 1983 Order of this court (Oberdorfer, J.) ("September 14 Order") which required Nahas to obey an administrative subpoena. Respondent Nahas has cross-moved the Court to: (1) quash the subpoena, (2) deny the motion to hold respondent in contempt, (3) vacate an Order (Greene, H., J.) which froze respondent's assets located in the United States *fn3" and, (4) dismiss these proceedings in their entirety.


 The facts relevant to the disposition of this matter are as follows. *fn4" In May, 1983, in the course of an authorized investigation of possible manipulation of the silver futures market by Nahas and others during 1979-1980, the CFTC issued an administrative subpoena duces tecum to Nahas. The subpoena was issued pursuant to Section 6(b) of the Commodity Exchange Act ("the Act"), 7 U.S.C. § 15. The subpoena required Nahas to appear, testify, and produce documents at the Commission's offices in Washington, D.C., on July 12, 1983. Nahas is a citizen and resident of Brazil. Service of the subpoena was made on Nahas in Brazil only, and was accomplished by leaving copies first with a receptionist at Nahas' office and later with a doorman at Nahas' residence. *fn5"

  Nahas failed to appear in July in response to the subpoena. On August 23, 1983, this court (Flannery, J.) issued an Order requiring Nahas to show cause why he should not be ordered to comply with the Commission's subpoena ("Show Cause Order"). The Order was served on Nahas by delivering a copy to Nahas' secretary at work. *fn6" See Declaration Pursuant to 28 U.S.Code Section 1746 of Paolo F. Bekin. *fn7" On September 14, 1983, a hearing on the Show Cause Order was held before Judge Oberdorfer. Nahas once more failed to appear in person or through counsel. After an ex parte hearing, Judge Oberdorfer's Order to comply. On October 11, 1983, Judge Harold L. Greene issued an Order requiring Nahas to show cause why he should not be held in contempt for failure to obey Judge Oberdorfer's September 14 Order. *fn8" In addition, Judge Greene froze Nahas' assets located in the United States pending a hearing on the Commission's contempt motion. On November 15, 1983, Nahas, through counsel, submitted for the first time a cross-motion in opposition to the CFTC's contempt motion. *fn9" On November 21, 1983, this Court heard argument on the Commission's contempt motion and the respondent's cross-motion. The Court extended the freeze order until further order of this Court, and took the motions under advisement.


 Section 6(b) of the Act, 7 U.S.C. § 15, authorizes this Court to punish as contempt "any failure" to obey a court order requiring compliance with an administrative subpoena. *fn10" In this case, respondent Nahas has failed to obey such an order (Judge Oberdorfer's September 14 Order). Respondent did not appeal the Order, and has not pleaded inability to comply. Rather, Nahas attempts for the first time in these contempt proceedings to challenge the validity of the underlying subpoena. Nahas' principal arguments are: (1) the CFTC was without the power under Section 6(b) of the Act to issue a subpoena outside the United States, and (2) the method of service was improper.

 It is well established that a civil contempt proceeding does not open to reconsideration the legal or factual basis of the order alleged to have been disobeyed. U.S. v. Rylander, 460 U.S. 752, 103 S. Ct. 1548, 1552, 75 L. Ed. 2d 521 (1983); Maggio v. Zeitz, 333 U.S. 56, 69, 68 S. Ct. 401, 408, 92 L. Ed. 476 (1948); Morgan v. Kerrigan, 509 F.2d 618, 620 (1st Cir.1975). An order issued by a court with jurisdiction over the subject matter and the parties must be obeyed until reversed by orderly and proper proceedings. U.S. v. United Mine Workers, 330 U.S. 258, 293, 67 S. Ct. 677, 695, 91 L. Ed. 884 (1947); Howat v. Kansas, 258 U.S. 181, 189-90, 42 S. Ct. 277, 280-81, 66 L. Ed. 550 (1922); U.S. v. Thompson, 319 F.2d 665, 667 (2d Cir.1963). Further, as a general proposition the United States Supreme Court has stated that if a person to whom the court directs an order believes that the order is incorrect, the remedy is to appeal. Maness v. Meyers, 419 U.S. 449, 458, 95 S. Ct. 584, 591, 42 L. Ed. 2d 574 (1975). It is clear, therefore, that if the September 14 Order of Judge Oberdorfer may be challenged at all in this contempt action, it may be challenged only on the grounds that the court lacked the power or jurisdiction to issue the order. U.S. v. Thompson, supra.11 If the court had subject matter and personal jurisdiction, respondent was under an obligation to obey the Order, and failure to do so is contempt.


 The Court finds that the district court (Oberdorfer, J.) which issued the September 14 Order requiring Nahas to comply with the subpoena did have subject matter and personal jurisdiction. Section 6(b) of the Act, 7 U.S.C. § 15, provides in pertinent part:

in case of contumacy by, or refusal to obey a subpoena issued to, any person, the Commission may invoke the aid of any court of the United States within the jurisdiction in which the investigation or proceeding is conducted . . . in requiring the attendance and testimony of witnesses and the production of books, papers, correspondence, memoranda, and other records. Such court may issue an order requiring such person to appear before the Commission . . ., there to produce records, if so ordered, or to give testimony touching the matter under investigation or in question. Any failure to obey such order of the court may be punished by the court as a contempt thereof. (emphasis added).

 Section 6(b) conferred subject matter jurisdiction on the court.

 The Court possessed personal jurisdiction as well. Nahas' substantial participation in the regulated futures markets of this country, see Declaration Under Penalty of Perjury of Phyllis J. Cela, CFTC Application For Show Cause Order, Exhibit A, constituted sufficient contacts with the United States so as to comport with "traditional notions of fair play and substantial justice." *fn12" International Shoe Co. v. Washington, 326 U.S. 310, 66 S. Ct. 154, 90 L. Ed. 95 (1945). In addition, the service of the Show Cause Order pursuant to Fed.R.Civ.P. 4(i)(1)(E) as directed by Judge Flannery, *fn13" was proper and sufficient ...

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