WASHINGTON, DC – Weidong Ge, of Shanghai, China, and his company Sheenson Investments, Ltd. have agreed to pay $1.5 million to settle charges brought by the U.S. Commodity Futures Trading Commission (CFTC) for exceeding speculative position limits in Soybean Oil and Cotton No. 2 futures contracts. The settlement, announced Tuesday, September 25, 2012, includes $1 million in disgorgement and a $500,000 civil monetary penalty.
The CFTC order details that Sheenson exceeded the all months combined speculative limit of 6,500 contracts in Soybean Oil on two occasions in February and March of 2009 – by 350 contracts on February 26th and by 88 contracts on March 10th.
Further violations occurred between January 6, 2011, and February 11, 2011. The CFTC found that Ge, through his ownership of Sheenson, Chaos Investment Co. Ltd. (British Virgin Islands), and Chaos Investment Ltd. (Hong Kong), exceeded the single month limit of 3,500 contracts in Cotton No. 2 by as many as 599 contracts. He also exceeded the all months limit of 5,000 contracts in Cotton No. 2 by 389 contracts during that period. On July 18, 2011, Ge again exceeded the single month limit in Cotton No. 2, this time by 143 contracts, through the same affiliated companies.
As part of the settlement, Ge and Sheenson are ordered to cease and desist from further violations of the Commodity Exchange Act’s prohibition against exceeding speculative position limits. The case was led by CFTC staff members Patrick M. Pericak, Daniel C. Jordan, Michael Loconte, Jeremy Cusimano, Rick Glaser, Richard Wagner, Susan Donlan, and Walter Spilka.
Source: CFTC.gov
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