CFTC charges traders Flavin, Kansas, and Grady, Colorado, with manipulation of wheat, cattle markets
The Commodity Futures Trading Commission on Wednesday issued orders against Adam Flavin, a Kansas resident, and Peter Grady, a Colorado resident, for attempted manipulation of the price of certain wheat futures and options contracts that were traded on the Chicago Board of Trade.
The CFTC also issued settled charges against Kooima & Kaemingk Commodities, Inc. (K&K), Lauren Kaemingk (Kaemingk), and Bradley Kooima (Kooima), all of Iowa, and ordered them 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 Chicago Mercantile Exchange in dealings over live cattle future contracts.
The CFTC said the second case had harmed farmers in Iowa, Maryland, Minnesota, Nebraska and South Dakota.
In the Flavin-Grady case, James McDonald, the CFTC director of enforcement, commented, “This case shows the CFTC’s commitment to holding individual wrongdoers accountable for their misconduct.”
“As this investigation shows, we will not stop at corporate charges but will work vigorously to ensure the individuals who carried out the wrongful acts are held accountable as well,” he said.
In the second case, McDonald said, “Many farmers depend on the futures markets to help protect their operations from financial uncertainty. Those farmers should be able to trust that their Introducing broker will deal with them honestly. Brokers are also expected to respond truthfully and completely to CME and other exchanges when misconduct is being investigated. When brokers defraud their customers and then seek to cover it up — as in this case — the commission will vigorously pursue them.”
Start a dialogue, stay on topic and be civil.
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User