New York trader Mehran Khorrami and his firm, Cayley Investment Management, LLC (CIM), have been slapped with a $150,000 penalty by the Commodity Futures Trading Commission (CFTC) for manipulative trading practices. The CFTC issued an order on May 7, 2020, detailing charges of wash sales and non-competitive transactions.
According to the agency, Khorrami, acting on behalf of CIM, engaged in a scheme to create the illusion of trading activity in foreign currency, crude oil, and gold futures contracts. The alleged manipulation occurred on February 8, 2018, involving simultaneous buy and sell orders across six different CME futures contracts.
The CFTC alleges Khorrami initially placed orders at differing prices, but when unable to secure a fill, repeatedly adjusted them until buy and sell prices matched. This resulted in six pre-arranged “cross trades” – transactions where the same entity acts as both buyer and seller – in contracts for crude oil, British Pound, Euro FX, Swiss Franc, and Japanese Yen. These trades were deemed non-competitive and designed to mislead market participants.
In addition to the $150,000 civil monetary penalty, Khorrami and CIM are ordered to cease and desist from further violations of the Commodity Exchange Act and related CFTC regulations. The investigation was conducted in collaboration with the CME, which also took disciplinary action against Khorrami.
The CME issued a Notice of Disciplinary Action stating Khorrami agreed to pay a $30,000 fine and serve a 10-day suspension related to the same manipulative trading activity. The CFTC acknowledged the CME’s assistance in the investigation. The case was led by CFTC enforcement staff members Dmitriy Vilenskiy, Luke Marsh, Jason Gizzarelli, and Paul Hayeck.
Source: CFTC.gov
Related Federal Cases
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · New York
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2026 · New York
- Kenneth Thom, Investment Adviser Fraud, New York NY, 2023 · New York
- Mark Thompson, Wire Fraud and Conspiracy, New York NY, 2023 · New York
- Attyx CEOs, $275M Solar Panel Installation Fraud, New York NY, 2023 · New York
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News