Release: 5087-05 (CFTC Docket No. 05-09)
ILLINOIS MAN SANCTIONED FOR UNAUTHORIZED COMMODITY TRADING
U.S. Commodity Futures Trading Commission Imposes Trading Ban and Monetary Penalty on David J. Mueller
WASHINGTON, D.C. – The United States Commodity Futures Trading Commission (CFTC) announced today that it simultaneously filed and settled an action against David J. Mueller of Aurora, Illinois, charging him with the unauthorized trading of at least three commodity futures customer accounts in violation of the antifraud provisions of the Commodity Exchange Act (CEA) and CFTC regulations.
The CFTC’s order finds that, from August 9, 2002 through May 25, 2004, Mueller was President and sole trader for Market Integrated Services, Inc., a brokerage firm. According to the order, Mueller did not have written power of attorney to place trades for any of his customers’ accounts, and knew that he was not permitted to engage in discretionary trading in any customer account.
The order finds that in December 2003, Mueller bought live cattle futures contracts for at least two of his customers’ commodity trading accounts without first obtaining their permission to do so. Mueller then sold the contracts at a loss to his customers. Similarly, according to the order, in March 2004, Mueller bought and sold soybean contracts for one customer’s commodity trading account without obtaining permission to do so. Those transactions also resulted in a loss to Mueller’s customer, the order finds.
The order provides that Mueller shall cease and desist from further violations of the CEA and CFTC regulations, as charged, pay a civil penalty of $30,000, be permanently prohibited from trading commodity futures, and comply with various undertakings. Mueller consented to the entry of the order without admitting or denying the findings of fact against him.
The following CFTC Division of Enforcement staff members were responsible for this case: Diane M. Romaniuk, Ava M. Gould, Mary Beth Spear, Rosemary Hollinger, and Scott Williamson.
* * * * * * *
The CFTC encourages members of the public to bring to our attention any suspicious activities involving futures or commodity options, including matters involving foreign currency investments or suspicious Internet web sites.
You may contact the CFTC at 1-866-FON-CFTC (1-866-366-2382), visit us at our Customer Protection web page(www.cftc.gov/cftc/cftccustomer.htm), or fill out our Internet Report Form identifying your concerns (www.cftc.gov/enf/enfform.htm). In addition, the CFTC publishes a series of Consumer Advisories alerting the public to warning signs of possible fraudulent activity and offering precautions individuals should take before committing funds.
# # #