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CFTC Orders Freepoint Commodities LLC To Pay $91 Million For Fraudulent Scheme To Misappropriate Material Non-Public Information
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MIL-OSI USA: Statement of Commissioner Kristin N Johnson Regarding CFTC Charges Against Ceres Global: Protect Farmers Ability to Hedge
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MIL-OSI USA: Federal Court Orders Washington Rancher to Pay $1 Million Penalty for Phantom Cattle Scheme, Position Limit Violations
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<p><span>Today, the U.S. District Court for the Eastern District of Washington issued an order granting a permanent injunction to resolve pending litigation against Cody Easterday (Consent Order). Easterday had previously been charged by the Commission for engaging in fraud in connection with the sale of more than 200,000 head of “ghost” cattle—which did not, in fact, exist—to Tyson Fresh Meats, Inc. (Tyson), a beef processor and part of a corporate family that together constitute one of the largest food suppliers in the world, as well as with making false statements to the Chicago Mercantile Exchange (CME) and violating exchange-set position limits.</span><span> As a result of Easterday’s fraud, Tyson paid him and his feedyard, Easterday Ranches, Inc. (Easterday Ranches), more than $233 million to which they were not entitled.</span></p>
<p><span>The Commodity Futures Trading Commission announced today it has issued an order simultaneously filing and settling charges against registered futures commission merchant (FCM) CHS Hedging LLC, of Inver Grove Heights, Minnesota, for anti-money laundering (AML), risk management, recordkeeping, and supervision violations. These violations are primarily a result of CHS Hedging failing to implement an adequate AML program, particularly as applied to a futures and options trading account controlled by one of its customers. In addition, CHS Hedging failed to implement risk-based limits concerning trading by that customer.</span></p>