September 26, 2018

CFTC Files Two Enforcement Actions Addressing Attempted Manipulation, Unauthorized Trading, and Fraud

Washington, DC — The Commodity Futures Trading Commission (CFTC) issued two Orders today filing and simultaneously settling charges against various respondents for violations of the Commodity Exchange Act and Commission Regulations, including for attempted manipulation,  fraud, and unauthorized trading, as set forth below and as more fully described in the related press releases for each Order.

Orders Filed Today

CFTC Charges Two Commodity Traders with Attempted Manipulation of Agricultural Markets

The CFTC today issued an Order against Adam Flavin (Flavin Order) and an Order against Peter Grady (Grady Order), traders at a Commodity Merchandising Firm, filing and simultaneously settling charges for their attempted manipulation of the price of certain wheat futures and options contracts that were traded on the Chicago Board of Trade.  The Flavin Order requires payment of a $125,000 civil monetary penalty, and imposes a trading ban, as set forth in the order, for four years.  The Grady Order requires payment of a $250,000 civil monetary penalty, and imposes a trading ban, as set forth in the order, for nine months. (Read more here)

CFTC Orders an Iowa Introducing Broker and Its Principals to Pay $11.9 Million in Restitution to Farmers and a $1.25 Million Civil Monetary Penalty for Fraud, Unauthorized Trading, and False Statements to the CME, Among Other Violations:  Farmers in Iowa, Maryland, Minnesota, Nebraska, and South Dakota Harmed

The CFTC today issued an Order filing and simultaneously settling charges against Kooima & Kaemingk Commodities, Inc. (K&K), Lauren Kaemingk (Kaemingk), and Bradley Kooima (Kooima), all of Iowa, for Kaemingk’s fraud, unauthorized trading, fraud, and making false or misleading statements to CME Group Inc. (CME), for a former employee’s fraud ,unauthorized trading and violation of CME position limits in live cattle futures contracts,; and for K&K’s, Kaemingk’s, and Kooima’s supervision failures.  The Order requires K&K, Kaemingk, and Kooima to pay $11,920,857.05 in restitution to their customers, which are almost entirely comprised of individual farmers and large-scale farming operations.  The Order also requires K&K, Kaemingk, and Kooima to pay a civil monetary penalty of $1,250,000 and orders that they cease and desist from further violations of the Act and Regulations, as charged. (Read more here)