CHICAGO, IL – January 26, 2011 – The U.S. Commodity Futures Trading Commission (CFTC) today announced charges and a simultaneous settlement with Andrew W. Daniels of Hinsdale, Illinois, for violating speculative position limits and concealing material facts related to rough rice futures contracts. The settlement also includes Edward Taylor of Naperville, Illinois, and their firm, Daniels Trading Group LLC, based in Chicago.
According to the CFTC, Daniels, Taylor, and DTG held aggregated positions in Chicago Board of Trade (CBOT) rough rice futures contracts that exceeded established speculative limits between October 2007 and July 2008. The CBOT’s single-month limit is 1,000 contracts, the all-month limit is also 1,000 contracts, and the step-down limit is 200 contracts. The CFTC found that the group exceeded these limits on numerous occasions – at least 38 days for the single-month limit, 42 days for the all-month limit, and three of the last five trading days for the step-down limit.
The investigation revealed that Daniels and Taylor intentionally concealed their trading relationship from the CME Group, the parent company of the CBOT, to avoid position limit aggregation. This concealment allowed them to maintain positions exceeding the legal limits without detection.
The CFTC also levied charges against Global Asset Advisors LLC, a Chicago-based introducing broker, and its President, Glenn Swanson of Long Grove, Illinois, for failing to adequately supervise the trading accounts of Daniels, Taylor, and DTG. Global and Swanson allowed the group to repeatedly violate position limits and facilitated trades in another’s name without proper authorization.
As part of the settlement, Daniels, Taylor, and DTG are jointly and severally responsible for a $2 million civil monetary penalty and must cease and desist from the violations. Daniels and DTG are also prohibited from trading rough rice futures or options contracts, while Taylor is barred from trading all commodity futures and options for 11 months. Global and Swanson will jointly pay a $200,000 penalty and must implement strengthened compliance procedures, including recommendations from a compliance consultant, to prevent future violations.
The CFTC’s Enforcement division led the investigation, highlighting the agency’s commitment to ensuring fair and transparent trading practices in the commodities markets.
Source: CFTC.gov
Related Federal Cases
- Letitia James, Securities Fraud, New York 2023 · Washington
- Eric Holub, Tax Withholding Fraud, Cedar Rapids IA, 2023 · Illinois
- Terry L. Gantt, ID Theft and Wire Fraud, Cedar Rapids IA, 2012 · Illinois
- Abel Hernandez-Labra, Passport Fraud, Hampton IA, 2023 · Illinois
- Princess L. Eatmon, Student Loan Wire Fraud, Albany GA, 2023 · Illinois
