UNITED STATES COMMODITY FUTURES TRADING COMMISSION SUSPENDS AND RESTRICTS REGISTRATION OF CHICAGO MERCANTILE EXCHANGE TRADER DEAN KAULENTIS
Cattle Trader’s Registration Suspended for Six Weeks and Then Restricted for Three Years
WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) announced today that on August 1, 2005, it simultaneously filed a notice and issued an order settling an administrative action against Dean Kaulentis of Lake Forest, Illinois. The CFTC order suspends Kaulentis’ floor broker registration for six weeks beginning on Monday, August 8, 2005, and restricts his registration for three years.
The CFTC’s notice and order are based on prior disciplinary action taken against Kaulentis by the Chicago Mercantile Exchange (CME), in which the exchange found that Kaulentis had engaged in uncommercial conduct and acts substantially detrimental to the interest and welfare of the exchange. The CME charged that in 2001 and 2002, Kaulentis pre-arranged trades of Live Cattle futures contracts opposite other exchange members, instead of competitively executing his customer orders. The CME also charged that Kaulentis assigned a trade to himself at a better price than his customer received. The CME ordered Kaulentis to repay the affected customer $4,200, fined Kaulentis $75,000, and suspended Kaulentis’ trading privileges for thirty days.
The CFTC order finds that the facts underlying the exchange disciplinary action warrant a registration sanction. The order suspends Kaulentis’ registration as a floor broker for six weeks – meaning that Kaulentis may not access the trading floor or handle customer orders during that period – and then prohibits Kaulentis, for three years, from supervising other commodity professionals, acting as a principal, partner, officer or branch office manager of a commodity firm, or serving on exchange boards, panels or committees. In addition, the order provides that Kaulentis’s registration will be automatically suspended if, during the three-year period, he is charged with any other commodity law or exchange rule violations.
Kaulentis consented to the entry of the order without admitting or denying the charges in the notice or the findings in the order.
The following Division of Enforcement staff members were responsible for the case: Rosemary Hollinger, Elizabeth Streit, Rocell Cyrus, Hugh Rooney, and Ralph DerAsadourian.
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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 (forex) investments or suspicious Internet websites.
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 at http://www.cftc.gov/cftc/cftccustomer.htm#advisory alerting the public to warning signs of possible fraudulent activity and offering precautions individuals should take before committing funds.