Chicago, IL – Commodity Futures Trading Commission (CFTC) officials have filed an amended complaint against Peter Miller and his firm, Omerta Capital LLC, alleging a second scheme involving the illegal use of confidential block trade information to manipulate natural gas futures contracts. The charges stem from actions dating back to 2017.
The CFTC initially brought charges against Miller and Omerta Capital in December 2021, accusing them of utilizing privileged block trade data from one energy company to profit from natural gas futures trades. This new filing details a nearly identical scheme involving a *different* energy company, further compounding the allegations of market manipulation.
According to the amended complaint, Miller and Omerta received non-public order information, allowing them to execute trades ahead of large block orders. They then allegedly engaged in “non-arm’s length, fictitious block trades” – transactions designed to create the illusion of legitimate market activity while concealing their manipulative intent. The CFTC claims this second fraudulent scheme generated over $3.5 million in illicit profits for Miller.
Beyond the fraudulent trading, the CFTC alleges Miller made false statements to the Chicago Mercantile Exchange (CME) in 2017. During an interview regarding the original allegations, Miller reportedly denied “pre-hedging” trades – making offsetting trades after receiving block trade order information but before the block trade was finalized. The CFTC asserts that Miller repeatedly pre-hedged during both fraudulent schemes, directly contradicting his statements to the CME.
The case is being prosecuted by Alison Auxter, Clemon Ashley, Lauren Fulks, Brandon Wozniak, Thomas Simek, Christopher Reed, and Charles Marvine of the CFTC’s Division of Enforcement. Penalties sought by the CFTC have not been disclosed at this time, but typically include fines and trading bans. The investigation remains ongoing.
Source: CFTC.gov
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