CFTC News Release 4404-00 (CFTC Docket No. 00-19)
For Release May 31, 2000
CFTC FILES AND SETTLES ENFORCEMENT ACTION AGAINST HOWARD E. THOMPSON FOR EXCEEDING EXCHANGE TRADING LIMITS AND FILING A FALSE REPORT
CFTC Orders Thompson To Pay $50,000 Civil Monetary Penalty and Imposes A Sixty Day Trading Suspension
WASHINGTON – The Commodity Futures Trading Commission (CFTC) announced today that it issued an order instituting and simultaneously settling an administrative proceeding against Howard E. Thompson of Bassett, Nebraska. In consenting to the order, Thompson neither admitted nor denied the findings in the order.
The CFTC order finds that, during the period of August 7, 1995 through January 31, 1997, Thompson, a commodities trader with an account at a registered futures commission merchant (FCM), controlled trading of that account and another account at the same FCM in the name of Thompson's sister-in-law and her husband. When aggregated, futures positions in his personal account and the account for his in-laws exceeded the position limits for frozen pork bellies at the Chicago Mercantile Exchange (CME) on six trading days in August 1996, according to the order. As the order finds, by exceeding the CME trading limits, Thompson violated section 4a(e) of the Commodity Exchange Act (CEA).
The order also finds that Thompson signed and filed with the CFTC a required report, A Statement of Reporting Trader ("Form 40"), that recklessly and falsely stated he did not control the futures trading of any other person, in violation of sections 4i and 6(c) of the CEA and Commission regulation 18.04(a)(5). The order further finds that Thompson failed to update the inaccurate Form 40 to provide information about persons whose futures trading he controlled, as required, when he was holding or controlling reportable positions in frozen pork bellies in his and/or his in-laws account on at least 300 trading days, in violation of regulation 18.04(d). The order also finds that Thompson traded on at least 35 days that he held or controlled reportable positions in his and/or his in-laws accounts. The holding or controlling of reportable positions and trading while holding or controlling such positions without updating the Form 40 violated section 4i of the CEA, according to the order.
Thompson consented to the entry of the order, which makes the above findings and that:
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