CFTC orders Iowan to pay $1.25 million over cattle futures fraud
The Commodity Futures Trading Commission today issued an order filing and simultaneously settling charges against Nathan Harris, a CFTC registrant, of Akron, Iowa, for fraud, unauthorized trading, and violating speculative position limits in live cattle futures contracts.
The order imposes a civil monetary penalty of $1.25 million and permanent restrictions on Harris’s registration with the CFTC.
CFTC Chairman Heath P. Tarbert stated: “This case shows the CFTC’s unwavering commitment to protect America’s farmers and ranchers from fraud and other misconduct in connection with the agricultural derivatives markets. The commission will continue to work to ensure all Americans who use these markets can have confidence in their integrity.”
The CFTC said that, between January 2012 and August 2014, Harris engaged in fraud and unauthorized trading by exceeding certain customers’ instructions concerning the size and risk of positions, failing to obtain specific authorization from certain customers for particular trades, and failing to obtain signed powers of attorney from certain customers.
Harris’s unauthorized trading resulted in approximately $10.3 million in customer losses. Through Harris’s unauthorized trading in one customer’s account, he also exceeded CME’s live cattle spot-month limit.