Peter Miller, Fraud, Illinois 2022

WASHINGTON, D.C. – Commodity Futures Trading Commission (CFTC) officials have filed an amended complaint against Peter Miller, alleging a second scheme involving the use of confidential block trade information for illicit profit. The complaint, filed December 2, 2022, builds upon an original filing from December 10, 2021, accusing Miller and his firm, Omerta Capital LLC, of similar fraudulent activity.

The CFTC alleges Miller obtained non-public order information from two separate energy companies and used it to trade natural gas futures. He then allegedly engaged in “non-arm’s length, fictitious block trades,” violating both the Commodity Exchange Act and CFTC regulations. The amended complaint details a second instance of this behavior, claiming Miller generated over $3.5 million in trading profits from this additional scheme.

Beyond the fraudulent trading, the CFTC accuses Miller of making false statements to the Chicago Mercantile Exchange (CME) in a 2017 interview. When questioned about “pre-hedging” – making offsetting trades before completing a block trade, a violation of CME rules – Miller reportedly denied ever engaging in the practice. However, the CFTC claims Miller routinely executed trades based on the confidential block trade information *before* those trades were finalized.

The case is being pursued by CFTC staff members Alison Auxter, Clemon Ashley, Lauren Fulks, Brandon Wozniak, Thomas Simek, Christopher Reed, and Charles Marvine. Penalties sought have not been publicly disclosed at this time. Miller is based in Illinois and the charges were filed in Washington, D.C.

This is a developing story and will be updated as more information becomes available.

Source: CFTC.gov

Source: https://www.cftc.gov/PressRoom/PressReleases/8634-22