Chicago, IL – Salvatore Carmen Russo, controller and head accountant for Cunningham Commodities, LLC, has been penalized by the Commodity Futures Trading Commission (CFTC) for his role in concealing a significant financial discrepancy at the firm. The CFTC issued an order on May 9, 2016, simultaneously filing and settling charges against both Russo and Cunningham Commodities.
The investigation revealed that Cunningham Commodities failed to immediately report a deficiency in its customer segregated account, a violation of CFTC regulations requiring prompt notification of any shortfall. The deficiency stemmed from an operational cash transfer error on March 10, 2014, resulting in an unreported $5 million discrepancy. While the error was corrected the following morning, the CFTC was not informed until March 12, 2014 – only after being alerted by audit staff from the Chicago Mercantile Exchange.
Russo was found liable for aiding and abetting Cunningham’s failure to report the deficiency, specifically for attempting to conceal the shortfall and neglecting to immediately notify the CFTC. Additionally, Cunningham Commodities was cited for failing to file required reports for Comex silver futures for nearly six months starting in November 2013, and for soybean options for two weeks in July 2014. The firm attributed these reporting failures to issues with an external software vendor.
The CFTC order requires Cunningham Commodities and Salvatore Russo to jointly and severally pay a civil monetary penalty of $150,000. Both are permanently prohibited from further violations of the charged CFTC regulations. The agency emphasized the importance of these reports in evaluating market risks and ensuring compliance within the commodities markets.
The case was handled by CFTC staff members Susan B. Padove, Elizabeth M. Streit, Scott Williamson, Rosemary Hollinger, Margaret M. Sweet, and Michael S. Zieff.
Source: CFTC.gov
Related Federal Cases
- Joe Biden Criticized for Wildfire Response, Maui HI, 2024 · Illinois
- Rico Tomas Garcia, Hand Sanitizer Scam, CO, 2023 · Washington
- Michael Jett Sentenced to 23 Months for Tax Evasion, MO, 2023 · Illinois
- Two Foreign Nationals, ID Theft Scheme, Los Angeles CA, 2023 · Florida
- Akira Salinas-Ruiz, Murder of 18-Month-Old, Wisconsin, 2006 · Illinois
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News