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2018 CFTC LEXIS 15

Commodity Futures Trading Commission

August 10, 2018

CFTC DOCKET NO. 18 -18

Commodity Futures Trading Commission (CFTC) Decisions

Opinion

The Commodity Futures Trading Commission ("Commission") has reason to believe that, from October 29, 2014, to September 28, 2016 (the "Relevant Period"), Christian Robert Mayer ("Mayer" or "Respondent") violated Section 4b(a)(1)(A) and (C) of the Commodity Exchange Act ("Act"), 7 U.S.C. § 6b(a)(1)(A), (C) (2012). Therefore, the Commission deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted to determine whether Respondent engaged in the violations set forth herein and to determine whether any order should be issued imposing remedial sanctions.

In anticipation of the institution of an administrative proceeding, Respondent has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Without admitting or denying any of the findings or conclusions herein, Respondent consents to the entry of this Order Instituting Proceedings Pursuant to Section 6(c) and (d) of the Commodity Exchange Act, Making Findings,  [*2]  and Imposing Remedial Sanctions ("Order") and acknowledges service of this Order. 1 

The Commission finds the following:

A. SUMMARY

During the Relevant Period, Mayer engaged in a deceptive scheme in which he conducted unauthorized trading, and then transferred the profitable unauthorized trades from two customers' accounts to his personal trading account while [*3]  leaving losing trades in the customers' accounts. The scheme involved Mayer making unauthorized trades in the accounts of Customers A and B. If the trade resulted in a gain, Mayer would transfer it to his account. If the trade resulted in a loss, Mayer would leave the trade in Customer A's or B's account.

Through these actions, Respondent violated anti-fraud provisions of Section 4b(a)(1)(A) and (C) of the Act, 7 U.S.C. § 6b(a)(1)(A), (C) (2012), which prohibits, among other things, fraudulent trade allocation schemes such as the one conducted by Respondent.

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2018 CFTC LEXIS 15 *

In the Matter of: Christian Robert Mayer, Respondent.

CORE TERMS

customer, commodity, unauthorized, register, defraud, trading account, registration, indirectly, successor, entity