July 22, 2010
Washington, DC—The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing and simultaneous settlement of charges related to the failure of Gage’s Fertilizer & Grain, Inc. (Gage’s Fertilizer) to register as a futures commission merchant (FCM) and of Steven W. Gage to register as an associated person (AP) of Gage’s Fertilizer, as required by the Commodity Exchange Act and CFTC regulations.
The CFTC order requires Gage’s Fertilizer and Gage jointly and severally to pay a $75,000 civil penalty and disgorge $100,000 of ill-gotten gains. Gage’s Fertilizer is a grain elevator and farm supply company based in Stanberry, Mo. Gage, who resides in Stanberry, is the company’s president, director and majority owner.
The CFTC order finds that, from at least January 2004 to December 2008, Gage’s Fertilizer acted as an FCM by soliciting and accepting orders for the purchase and sale of domestic, exchange-traded commodity option contracts without registering with the CFTC as an FCM. The order finds that Gage’s Fertilizer failed to properly account for or segregate customer funds relating to such transactions.
The order also finds that Gage solicited and accepted orders for the purchase and sale of domestic, exchange-traded commodity option contracts while failing to register as an AP of Gage’s Fertilizer. Gage’s Fertilizer allowed Gage to engage in such acts conducted by an AP, without registering as such with the CFTC, according to the order.
Respondents required to cooperate with any further investigation or legal action arising from this matter
The order also requires Gage’s Fertilizer and Gage to comply with undertakings, including the commitment to disclose the CFTC order to Gage’s Fertilizer’s principals and employees and to cooperate with any further investigation or legal action arising from this matter. The order appoints the National Futures Association to collect payments by Gage’s Fertilizer and Gage and to distribute such payments to those harmed by the violations described in the CFTC order.
The following CFTC staff members are responsible for this case: Rachel Hayes, Stephen Turley, Charles Marvine, Rick Glaser and Richard Wagner.
Last Updated: July 22, 2010