For Release: April 25, 2007
U.S. Commodity Futures Trading Commission Files Action against Five Foreign Entities and Individuals for Engaging in Illegal Transactions to Pass Money among Trading Accounts
Supama International DMCC, Naresh Kumar Jain, Aaristo Commodities and Futures DMCC, Kanta Nath Jain, and Hainke & Anderson Trading LLC are Charged with Trading in Illiquid, Distant Contracts Opposite One Another
Washington, D.C. — The U.S. Commodity Futures Trading Commission (CFTC) filed a complaint in the U.S. District Court for the Southern District of New York against Supama International DMCC, Naresh Kumar Jain, Aaristo Commodities and Futures DMCC, Kanta Nath Jain, and Hainke & Anderson Trading LLC, all of Dubai, United Arab Emirates.
The CFTC complaint alleges that the defendants engaged in transactions in violation of the Commodity Exchange Act and traded noncompetitively in violation of a CFTC regulation. On April 5, 2007, and April 20, 2007, the Honorable Richard J. Holwell, U.S. District Court Judge, Southern District of New York, issued restraining orders freezing certain of the defendants' assets and prohibiting them from destroying documents or denying CFTC staff access to books and records.
Specifically, the complaint alleges that the defendants engaged in a series of illegal commodity futures transactions in copper, gold, crude oil, and natural gas offered by the New York Mercantile Exchange on the Globex electronic trading platform involving back-month, illiquid contracts. The complaint further charges that the defendants passed hundreds of thousands of dollars among their futures trading accounts through these illegal commodity futures transactions.
Moreover, the complaint alleges that the defendants engaged in a pattern of trading activity on several days in March and April 2007, whereby one defendant bought commodity futures contracts at low prices from another defendant and immediately sold them back to that defendant at higher prices. In each series of offsetting transactions, one defendant profited and another defendant incurred a loss, with no change in open positions held by those defendants.
The CFTC would like to thank the New York Mercantile Exchange and Man Financial Inc for their assistance. The CFTC would like to also thank the Dubai Financial Services Authority.
The following CFTC Division of Enforcement staff members are responsible for this matter: Sheila Marhamati, Manal Sultan, David Acevedo, and Stephen Obie.
Last Updated: May 8, 2007