April 12, 2010
CFTC Files Enforcement Action against Singapore National Kuen Cheol Song for Engaging in an Illegal Trading Scheme
Song charged with non-competitive trading at his employer’s expense.
Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that it charged Kuen Cheol Song, a citizen of Singapore, with engaging in fictitious transactions and trading noncompetitively in violation of the Commodity Exchange Act and CFTC regulations. Song has never been registered with the CFTC.
On April 6, 2010, the same day the complaint was filed under seal in the U.S. District Court for the Southern District of New York, the Honorable Naomi Reice Buchwald issued a restraining order freezing certain of defendant's assets and prohibiting him from destroying documents and denying CFTC staff access to books and records. The court set a hearing on the CFTC’s motion for a preliminary injunction on April 19, 2010.
The CFTC complaint alleges that, since at least August 28, 2009, defendant Song engaged in a series of unlawful commodity futures transactions involving Natural Gas and Hearing Oil futures contracts on the New York Mercantile Exchange (NYMEX). Through this allegedly unlawful scheme, Song repeatedly made non-competitive, fictitious trades between his personal account and the hedge fund account of his employer, Singapore-based Woori Absolute Partners, where he is a director. Since August 28, 2009, according to the complaint, Song’s personal account has profited by more than $348,000 through this illegal scheme of non-competitive, fictitious trades, while Woori’s account has lost a corresponding amount.
The CFTC thanks the CME Group, Inc., the parent of the NYMEX, for its assistance in this matter.
In its continuing litigation, the CFTC seeks restitution, civil monetary penalties, trading and registration bans and a permanent injunction against further violations of the federal commodities laws.
The following CFTC Division of Enforcement staff members are responsible for this matter: Ken Koh, A. Daniel Ullman II, Elizabeth Padgett, Michael Berlowitz, Joseph Rosenberg, Peter M. Haas, Paul G. Hayeck and Joan Manley.
Last Updated: April 12, 2010