The US Commodity Futures Trading Commission has settled fraud and unauthorised trading charges against former Chicago Board of Trade floor broker John Lee Neuman.
The regulator found that on June 22, 2007, Neuman, a pit
trader in CBoT corn options, engaged in unauthorised trading in
the account of another corn options trader. He ignored
instructions to limit risk and made unauthorised purchases of
several thousand July 2007 corn futures contracts in a downward
He then attempted to hide his unauthorised trades from the
account owner by misrepresenting the profits, losses and risks
the account was incurring. Neuman altered trade data in a risk
monitoring system used by the account owner to monitor his
trading, and issued false statements to the account owner, who
suffered about $4m of trading losses.