March 19, 2014
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today charged Bradley A. Miklovich, a former senior commodities analyst with Rice Investment Company (Rice), a commodity brokerage firm registered with the CFTC as an Introducing Broker located in Maumee, Ohio, with commodity futures fraud. Miklovich resides in Stow, Ohio.
The CFTC Complaint alleges that Miklovich engaged in unauthorized trading for two customers’ accounts, made material misrepresentations and omissions in connection with his unauthorized trading, and falsified Rice’s internal trading documents and a customer’s account statements to conceal his unauthorized trading.
Specifically, the Complaint alleges that, from July 23 through July 30, 2013, Miklovich placed trades for more than 2,000 commodity futures and options contracts for two customers’ non-discretionary accounts, without authorization to place those trades. Miklovich concealed his unauthorized trading from Rice by preparing phony daily reconciliations for the firm that failed to account for the unauthorized trades he placed, according to the Complaint. Similarly, Miklovich allegedly falsified daily customer account summaries and caused those summaries to be sent to one of the customers to conceal his unauthorized trading from that customer. As a result of Miklovich’s unauthorized trading, the two customers’ accounts sustained losses totaling approximately $574,323. Rice paid its clearing Futures Commission Merchant (FCM) virtually the entire amount to cover the customers’ losses, according to the Complaint.
In its continuing litigation, the CFTC seeks restitution for monies Rice paid to its clearing FCM to compensate customers for their trading losses, civil monetary penalties, permanent registration and trading bans, and a permanent injunction prohibiting Miklovich from violating federal commodity laws, as charged.
CFTC Division of Enforcement staff members responsible for this case are Diane M. Romaniuk, Ava M. Gould, Mary Elizabeth Spear, Scott R. Williamson, and Rosemary Hollinger.
Last Updated: March 19, 2014