CFTC REVOKES REGISTRATION OF ILLINOIS FLOOR BROKER, DONALD R. VAN PATTEN
WASHINGTON, D.C. -- The U.S. Commodity Futures Trading Commission (CFTC) announced today that on March 25, 2004, it simultaneously filed and settled an action against Donald R. Van Patten of Antioch, Illinois, revoking his registration as a floor broker. Van Patten, without admitting or denying the allegations against him, agreed to the revocation of his registration.
The CFTC’s action follows a disciplinary action taken against Van Patten by the Chicago Board of Trade (CBOT), which on September 26, 2003, charged that Van Patten, the Operations Manager for E.M. Combs & Sons (Combs), had engaged in a variety of misconduct between January 2001 and February 2003 that financially benefited Van Patten and harmed Combs.
According to the CBOT, Van Patten changed the execution prices for trades in his personal account, resulting in a gain of nearly $165,000 to Van Patten and a corresponding loss to Combs. In addition, the CBOT charged that Van Patten made numerous credit adjustments that benefited him and harmed Combs by an amount in excess of $310,000, and that Van Patten made secret adjustments to Combs’ books during the relevant period.
On December 19, 2003, a CBOT exchange disciplinary committee found that Van Patten’s misconduct violated several CBOT rules prohibiting fraud, dishonorable or dishonest conduct, acts detrimental to the interest or welfare of the Exchange; and reckless and unbusinesslike dealing inconsistent with just and equitable principles of trade. The CBOT ordered that Van Patten be permanently barred from association with any CBOT member or member firm and ordered that he not reapply for membership or in any other capacity at the Exchange. No funds or accounts of public customers were harmed by Van Patten’s actions.
The CFTC order found that the foregoing facts constitute cause for a statutory disqualification of Van Patten under Commodity Exchange Act.
The following CFTC Division of Enforcement staff were responsible for this case: Diane M. Romaniuk, Ava M. Gould, Mary Beth Spear, Rosemary Hollinger, and Scott Williamson.
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