CFTC Fines Individual for Illegal Futures and Options Trading

On September 29, the CFTC issued an order filing and settling charges against Jon P. Ruggles for engaging in fraudulent, fictitious, and noncompetitive trades in crude oil and heating oil futures and options and RBOB gasoline futures on the New York Mercantile Exchange (NYMEX) from March 2012 to December 2012.  The CFTC found that Ruggles, who was responsible for developing his former employer’s fuel hedging strategies and executing the employer’s trades in those NYMEX products, owed a duty of trust and confidence to act in the employer’s best interest and to keep confidential the employer’s material, nonpublic information regarding its trading activity.  According to the order, Ruggles breached those duties and misappropriated the employer’s confidential, material, nonpublic trading information for his own personal benefit by trading the same NYMEX products in personal accounts in his wife’s name, which he controlled.  The CFTC’s order requires Ruggles to disgorge over $3.5 million and imposes a civil penalty of $1.75 million.  Ruggles is also permanently banned from trading and registering with the CFTC.