WATSEKA, IL – Cameron Charles, of Watseka, Illinois, has been permanently barred from commodity futures trading and ordered to pay $100,000 in penalties after defrauding his employer, Watseka Farmers Grain Co. Cooperative, according to a consent order issued by the U.S. Commodity Futures Trading Commission (CFTC) on June 18, 2008.
The CFTC filed a lawsuit against Charles on June 23, 2005, alleging that he engaged in unauthorized and illegal speculative trading on behalf of the cooperative. Charles, as manager of Watseka, was responsible for hedging the co-op’s grain positions and reporting them to the Illinois Department of Agriculture. However, from at least January 2004 through May 2004, he accumulated a large, unauthorized position in soybean futures, concealing it from the Board of Directors and state regulators by falsifying records.
In mid-May 2004, a sharp decline in the soybean futures market triggered margin calls that Watseka could not meet, ultimately leading to the cooperative’s liquidation on May 24, 2004. The CFTC also found that Charles accepted futures orders from local farmers and executed them through Watseka’s account without being properly registered with the agency.
The consent order, entered by Honorable Harold A. Baker of the U.S. District Court for the Central District of Illinois, permanently prohibits Charles from engaging in any commodity futures trading, applying for registration, claiming exemption from registration, or participating in any activity requiring registration with the CFTC. The $100,000 civil monetary penalty is intended to address the financial harm caused by Charles’s actions.
The case was led by CFTC Division of Enforcement staff members Mark Bretscher, William Janulis, Merle Hampton, Scott Williamson, Rosemary Hollinger, and Richard Wagner.
Source: CFTC.gov
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