Kooima & Kaemingk Commodities, Inc., an introducing broker registered with the Commodity Futures Trading Commission, and two of its co-owners – Bradley Kooima and Lauren Kaemingk – agreed to pay a fine of US $1.25 million, and restitution of US $11.9 million to resolve a CFTC enforcement action related to the IB’s purported unauthorized trading of customers’ accounts. The CFTC said that because respondents already paid US $3.2 million to K&K customers, they would only be liable for an additional US $8.7 million going forward. Mr. Kaemingk also agreed to a 15-month trading ban, and Mr. Kooima, a four-month trading ban, on all CFTC overseen trading facilities.
The CFTC claimed that from January 2012 to February 2016, Mr. Kaemingk and an unnamed K&K employee traded IB customer accounts without written authorization causing over US $10 million in customer losses. Moreover, the unnamed employee caused one customer account to exceed speculative position limits in live cattle futures contracts, and Mr. Kaemingk knowingly made false statements to the Chicago Mercantile Exchange during its investigation of the unnamed employee’s unauthorized trading, charged the CFTC. The CFTC said that all the defendants failed to supervise the unnamed employee.
The CME also brought and settled disciplinary actions against the three respondents in the CFTC’s enforcement action for the same underlying facts. Under the CME’s settlement, the three respondents agreed to pay an addition