Release: 5788-10
For Release: March 8, 2010

New York Court Imposes Fine and Other Sanctions Against Robert Moore, Former Managing Director of the Bank of Montreal’s Commodity Derivatives Group

Moore settles CFTC charges relating to the mis-marking of the natural gas options book by David P. Lee.

Washington, DC — The U.S. Commodity Futures Trading Commission (CFTC) today announced that it has entered into a consent order settling charges brought against Robert Moore of Connecticut, former executive managing director for the Bank of Montreal’s (BMO) Commodity Derivatives Group, relating to the mis-marking and mis-valuing of BMO’s natural gas options book by the trader he supervised.

The federal court order, entered on March 8, 2010, by the Honorable George B. Daniels of the U.S. District Court for the Southern District of New York, requires Moore to pay a $150,000 civil monetary penalty within ten days. The order also permanently prohibits Moore from engaging in any conduct in violation of the Commodity Exchange Act and/or CFTC regulations concerning any commodity options transaction.

The order stems from a CFTC complaint filed on November 18, 2008, that charged defendant David P. Lee with unlawfully mis-marking his natural gas options positions between at least May 2003 and May 2007 and with mis-valuing other natural gas options positions from October 2006 until May 2007 (see CFTC Press Release 5571-08). Further, the complaint charged that Lee and various brokers deceived BMO by fabricating purportedly independent broker quotes delivered to BMO’s back office for price and skew verification. The complaint alleged that such conduct violates the anti-fraud and false reporting provisions of the Commodity Exchange Act and CFTC regulations. Moore was Lee’s direct supervisor at BMO. Moore was charged with controlling person liability for Lee’s violations.

Lee settled the action against him in November 2009 (see CFTC Press Release 5745-09). The CFTC’s litigation continues against the remaining defendants in this action.

The CFTC thanks the Manhattan District Attorney’s Office, the Federal Bureau of Investigation and the U.S. Attorney’s Office for the Southern District of New York for their assistance.

The following CFTC staff members are responsible for this case: Joan Manley, Christine Ryall, Eugene Smith, Patricia Gomersall and Paul Hayeck.

Media Contacts
Scott Schneider

Dennis Holden

Last Updated: April 2, 2010