Mt. Pocono, PA – Robert M. McMahon, 51, of Mt. Pocono, Pennsylvania, has been penalized by the Commodity Futures Trading Commission (CFTC) for a deceptive trading scheme involving Henry Hub Natural Gas Futures contracts. The CFTC announced the settlement on September 17, 2015, outlining McMahon’s fraudulent activity that occurred around July 2010.
According to the CFTC order, McMahon engaged in a scheme where he allocated advantageous pricing on futures contracts to himself while simultaneously providing a customer with contracts at unfavorable prices. He achieved this through non-competitive block trades, positioning himself as the counterparty to the customer’s trades.
The order details how McMahon executed these block trades at prices detrimental to the customer but beneficial to himself. Immediately following these trades, he executed offsetting futures contracts at market prices, guaranteeing a profit. This structure ensured McMahon profited from each block trade at the customer’s expense. The CFTC found that on July 28, 2010, McMahon improperly profited $171,800 from two transactions using this method.
As a result of the CFTC’s investigation, McMahon is required to pay a $171,800 civil monetary penalty. Furthermore, he is permanently banned from trading commodities and registering with the CFTC. The order also mandates that McMahon cease and desist from any further violations of the Commodity Exchange Act.
The CFTC acknowledged the assistance provided by the CME Group in the investigation. The case was led by CFTC Division of Enforcement staff members Gates S. Hurand, K. Brent Tomer, Lenel Hickson Jr., and Manal M. Sultan.
Source: CFTC.gov
Related Federal Cases
- Gerardo Heriberto Nuñez Nuñez, Elder Fraud Scheme, Boston MA, 2026 · Washington
- No Defendant Name Found, Bank Fraud Scheme, USA, 2022 · New York
- Marc Henry Menard, Investment Fraud Scheme, Mineola NY, 2023 · New York
- Marc Henry Menard, Investment Fraud Scheme, New York, 2023 · New York
- Bruce Choi, COVID-19 Relief Fraud, Los Angeles CA, 2023 · Pennsylvania
