In the Matter of Kevin McLaren and Edward Gorman, CFTC Docket No. 13-22. On April 29, 2013, the CFTC announced the filing of a settled Order finding that Kevin McLaren and Edward Gorman engaged in illegal wash sales. According to the CFTC Order, McLaren and Gorman made prearranged trades in corn futures for the same quantity, price, and contract month. In each instance, McLaren and Gorman were on the opposite side of the trade. According to the CFTC, the trades were not legitimate market transactions and were therefore noncompetitive “wash sales.” Without admitting or denying the CFTC’s allegations, McLaren and Gorman consented to entry of the CFTC Order which imposes a $200,000 civil monetary penalty each on McLaren and Gorman. The Order also requires them to cease and desist from future violations of Section 4c(a) of the Commodity Exchange Act and CFTC Regulation 1.38(a). McLaren and Gorman were also ordered to submit to 140-day trading bans.
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