The futures and option markets regulator claimed that due to fraudulent e-mini futures trades and phony entries, the FCM suffered $118m loss.
In a lawsuit filed in the District Court for the Southern District of New York, the CFTC said that Taylor had manually entered fake trades in November and December 2007, in an attempt to cover an $8.3bn position in futures contracts.
The accused hided and misrepresented the size of his true e-mini futures position within the employer’s internal systems during the above period.
Taylor also hindered his employer’s discovery of his scheme by, among other things, providing fake, disingenuous or deceptive information and reports to the FCM’s employees about the e-mini futures position, risk, and P&L.
The CFTC has sought for civil monetary penalties from Taylor, as well as trading and registration bans, and a permanent injunction barring further violations of the federal commodities laws, as charged.
