The Commodity Futures Trading Commission this week filed charges against a Chinese national, in the Northern District of Illinois Court.
CFTC charged Dichao Xie with a fraudulent scheme in which he misused knowledge of his employer’s trading in feeder cattle futures and options to trade for his own benefit in breach of a duty to his employer.
Xie’s trades also constituted illegal fictitious and noncompetitive trades under the Commodity Exchange and CFTC regulations, according to the complaint.
The complaint seeks, among other relief, civil monetary penalties, return of any ill-gotten gains, restitution, and permanent trading and registration bans.
The complaint alleges that from approximately December 2021 to April 2022, Xie engaged in a fraudulent scheme to misappropriate material, non-public information from his employer in breach of a duty to that employer. Xie misused that information to enter into trades of feeder cattle futures and options fraudulently and deceptively for his personal benefit.