Trader Eric Moncada and firms BES Capital LLC and Serdika LLC were accused by U.S. regulators in a lawsuit of attempting to manipulate wheat futures contract prices.
While trading for the companies, Moncada placed and immediately canceled orders in December 2009 wheat futures with the intent of raising or lowering prices, the U.S. Commodity Futures Trading Commission alleged in a complaint filed today in federal court in Manhattan.
The transactions occurred between Oct. 6 and Oct. 30, 2009, and involved futures traded on the Chicago Board of Trade, the CFTC said. Moncada is a CFTC-registered floor broker with trading privileges at the New York Mercantile Exchange, according to the regulator’s website.
“The illegal scheme alleged in the complaint, entering and quickly canceling large-lot future orders without any intent to consummate a trade, undermines the integrity of the market,” David Meister, director of the CFTC’s division of enforcement, said in a statement.
Contact information for the defendants couldn’t immediately be found.
The agency is seeking disgorgement, financial penalties and injunctions preventing Moncada and the companies from engaging in further commodities trading.
The case is U.S. Commodity Futures Trading Commission v. Moncada, 12-cv-8791, U.S. District Court, District of New York (Manhattan).
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