March 27, 2017
Davisco Foods International, Inc. Ordered to Pay $150,000 Penalty for Acting as a Futures Commission Merchant without Registering with the CFTC
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order filing and settling charges against Davisco Foods International, Inc., based in Le Sueur, Minnesota, for failure to register with the CFTC as a Futures Commission Merchant (FCM).
The CFTC Order finds that for a number of years, from at least May 2011 and continuing through at least October 2014, Davisco accepted orders from its milk suppliers for the purchase and sale of CME Class III Milk futures contracts. Davisco executed these orders on behalf of these milk suppliers in Davisco’s own trading accounts. Further, according to the Order, in connection with these orders, milk suppliers received credits and debits to their accounts with Davisco. As such, Davisco acted as an FCM, and by failing to register as an FCM, Davisco violated Section 4d(a)(1) of the Commodity Exchange Act (CEA), the Order finds.
The CFTC Order requires Davisco to pay a $150,000 civil monetary penalty and to cease and desist from further violations of the CEA, as charged.
CFTC Division of Enforcement staff members responsible for this case are Aimée Latimer-Zayets, Danielle Karst, George Malas, A. Daniel Ullman II, and Paul G. Hayeck.
Last Updated: March 27, 2017