Release: #4057-97 (4-96-CV-70005)
For Release: September 26, 1997
CFTC FILES STATUTORY DISQUALIFICATION ACTION AGAINST MARK S. SHANER, EFFECTIVELY BARRING HIM FROM THE FUTURES INDUSTRY
ACTION STEMS FROM A 1996 ENFORCEMENT ACTION CHARGING COMMODITY POOL FRAUD AND HIS SUBSEQUENT CRIMINAL CONVICTION
Iowa Federal District Court Issues Permanent Injunction in July Against Shaner and Shaner Trading Partners Ordering Disgorgement of Ill-Gotten Gains
WASHINGTON -- The Commodity Futures Trading Commission (CFTC) announced
today that on September 23, 1997, it issued an order involving Mark S.
Shaner and Shaner Trading Partners, Inc., a commodity pool
operator, both of Fairfield, Iowa, permanently revoking Shaner's
registration with the CFTC as an Associated Person and Shaner Trading
Partners, Inc.'s registrations as a Commodity Pool Operator and Introducing
The CFTC's revocation order states that Shaner is statutorily disqualified from registration as a result of an August 1997 felony conviction for conversion under the Commodity Exchange Act. Shaner plead guilty to converting funds in excess of $100 that he received from commodity pool participants and using such funds for his personal benefit. Sentencing in the criminal case is scheduled for November 17, 1997.
In addition, a consent order of permanent injunction was entered on July
31, 1997, by the Honorable Harold D. Vietor of the U.S. District Court for
the Southern District of Iowa (Des Moines) against Shaner and Shaner
Trading Partners, Inc., stemming from a four-count CFTC civil complaint
filed on January 4, 1996, alleging that the defendants defrauded commodity
pool participants, engaged in commodity pool fraud, and misappropriated and
converted customer funds, among other violations of the Commodity
Exchange Act (CEA) (see CFTC News Release #3887-96, January 18,
The court's permanent injunction prohibits Shaner and Shaner Trading Partners from violating the CEA as charged and from seeking registration with the CFTC in any capacity, among other sanctions. In addition, the court ordered disgorgement, which, under the terms of the consent order, can be satisfied by the sale of the home owned by Shaner.
The CFTC complaint alleged that Shaner Fund Limited Partnership, a commodity pool operated by the defendants, purchased a certificate of deposit with investors' funds, and that Shaner used those funds to pay his personal and business debts to Iowa State Bank and Trust Company of Fairfield, Iowa, consisting principally of a loan used by Shaner to build his home.
Full restitution was previously made to investors by Shaner and Iowa State Bank and Trust Company of Fairfield, Iowa, which was a relief defendant in the action. The bank paid $565,000 to settle the allegation in the complaint that it was unjustly enriched by the defendants' actions.