CFTC News Release 4411-00 (CFTC Docket 00-22)
For Release June 28, 2000
CFTC FILES ADMINISTRATIVE COMPLAINT AGAINST DALE LUTHER MOCK, CHARGING HIM WITH UNAUTHORIZED TRADING AND FRAUD
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced today that it filed a one-count administrative complaint against Dale Luther Mock, of Greeley, Colorado. The complaint, filed on June 27, 2000, alleges that Mock, a former associated person (AP) of a registered introducing broker (IB), violated section 4b of the Commodity Exchange Act (CEA) and CFTC regulation 166.2 by making unauthorized trades in his customers' accounts.
Specifically, the CFTC complaint alleges that, in July and August 1998, Mock made trades in customer accounts, without obtaining written or oral authorization from the customers. According to the complaint, when two of those customers complained about the unauthorized trades, Mock transferred the trades to the accounts of two other customers, again without obtaining the authorization of the customers into whose accounts the trades were transferred. The complaint charges that, by effectuating these unauthorized trades and transfers, Mock engaged in fraud in violation of section 4b(a)(i) and (iii) of the CEA, and in unauthorized trading in violation of CFTC regulation 166.2. The complaint further alleges that the IB, who employed Mock at the time, uncovered the unauthorized trading and thereafter terminated Mock�s employment and reported the unauthorized trading to the CFTC.
A public hearing has been ordered to determine whether the allegations are true and, if so, what sanctions are appropriate in the public interest. Possible sanctions include an order directing Mock to cease and desist from violating the CEA and CFTC regulations, imposing a trading prohibition, and requiring Mock to pay a civil monetary penalty as well as restitution to defrauded customers.
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