Member access

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

CFTC - U.S. Commodity Futures Trading Commission : CFTC Charges Ethanol Trader John Aaron Brooks with Fraud for Scheming to Conceal Trading Losses

09/27/2013 | 07:40pm US/Eastern

September 27, 2013

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today filed a civil injunctive enforcement action charging John Aaron Brooks with defrauding an affiliate of a large commercial bank where he then worked by scheming to conceal trading losses from the bank and its affiliate.  As alleged in the CFTC's Complaint, Brooks effectuated his scheme by inflating the value of New York Mercantile Exchange Chicago Ethanol (Platts) Futures contracts to conceal trading losses he was incurring.  The losses concealed ultimately grew to cause the bank and its affiliate to suffer over $40 million in realized losses before Brooks's fraud was detected, leading to his termination, according to the Complaint. Brooks resides in Houston, Texas.

The CFTC's civil complaint, filed September 27, 2013, in the U.S. District Court for the Southern District of New York, alleges that for the majority of the days for nearly eleven months beginning in or about November 2010, and continuing through on or about October 20, 2011, Brooks, then employed as Director in the commodities business of the bank affiliate, knowingly entered false inflated prices into an internal trade booking and valuation computer software system to effectuate his scheme to conceal trading losses.

In its continuing litigation, the CFTC seeks a civil monetary penalty, restitution, trading and registration bans, and a permanent injunction prohibiting further violations of the federal commodities laws, as charged. 

CFTC Division of Enforcement staff responsible for this case includes Janine Gargiulo, Michael Geiser, Trevor Kokal, David Acevedo, Lenel Hickson, Stephen J. Obie, Manal Sultan, and Vincent McGonagle.

Media Contacts
Dennis Holden

Last Updated: September 27, 2013

distributed by
Recommend :
React to this article
Latest news
Date Title
<1m ago MIRABELA NICKEL : MBN Notice of Annual General Meeting
<1m ago Private Placement Closed
1m agoDJCEE MORNING BRIEFING : Czech Incentives for Hyundai Mobis in Focus
3m ago TERADYNE : Q2 Results Top Estimates, Guides Q3 Below View
4m ago HONDA MOTOR : Researchers Submit Patent Application, "Internal Combustion Engine Control Apparatus and Internal Combustion Engine Control Method", for Approval
4m ago Researchers Submit Patent Application, "Direct-Drive Wind Turbine", for Approval
4m ago BURSA MALAYSIA BERHAD : Sasbadi surges on debut
4m ago WESTPORTS BHD : Q2 profit up 2.4pc to RM122.5m
4m ago LBS BINA BERHAD : buys 8m new VTI shares
4m ago CIMB BHD : plans to acquire Finansa Asset
Latest news
Hot News 
EUROPEAN ISLAMIC INVESTMENT BANK : Euro Islamic Inv Bnk - Proposed appointment of CFO and Executive Director
PENNA CONSULTING : Quarterly Revenue And Profit Ahead Of Expectations
RAPIDCLOUD : To Acquire Exxelnet For GBP950,000 In Cash And Shares
SERABI GOLD : Declaration of commercial production at Palito and second quarter operations update
Most Read News
3h ago QUALCOMM : struggles to collect royalties in China, stock falls
2h ago FACEBOOK : beats Wall Street targets, stock hits record high
2h ago AT&T : new device financing plan weighs on revenue
3h ago NOVO NORDISK A/S : New Colitis Study Results from Novo Nordisk Described (Predictive validity and immune cell involvement in the pathogenesis of piroxicam-accelerated...
1h ago BOMBARDIER : to cut 1,800 jobs, aerospace head retires
Most recommended articles
6d agoDJU.S. Industrial Production-Historical
1m agoDJCEE MORNING BRIEFING : Czech Incentives for Hyundai Mobis in Focus
5m ago China's industry ministry says economy faces downward pressures
7m ago China July HSBC flash PMI at 18-month high of 52.0
8m agoDJALSTOM : U.K.'s Serious Fraud Office Sets Charges Against Alstom, Report Says
Dynamic quotes