DFA settlement includes $12 million penalty
By Dairy Herd news source | Tuesday, December 16, 2008
Dairy Farmers of America, the nation’s largest dairy cooperative, has reached a settlement with the Commodity Futures Trading Commission. The settlement ends the CFTC’s investigation into DFA’s trading activities on the Chicago Mercantile Exchange in 2004.
Without admitting or denying the CFTC’s findings in the administrative order, DFA and two of its former officers agreed to pay a negotiated aggregate civil monetary penalty of $12 million. The Cooperative also agreed to not engage in speculative trading in milk futures contracts for two years and to retain a monitor to review its trading activities on the Chicago Mercantile Exchange during that period.
DFA President and CEO Rick Smith said that agreeing to the settlement was in the best interests of the Cooperative and its members. The long-pending probe was expensive and diverted time and resources from DFA’s main mission — serving its members.
“Settling this matter will allow us to focus wholly on serving our members and moving the Cooperative forward,” said Smith. “We have fully cooperated with the CFTC’s investigation and wanted to put this matter behind us,” he said in a DFA statement.
According to the Kansas City Star, former Chief Executive Officer Gary Hanman and former Chief Financial Officer Gerald Bos, along with DFA, will pay a $12 million civil penalty. To read the Star report, click here.
DFA settlement includes $12 million penalty DairyHerd.com - Industry News
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