CFTC Issues Five-Count Complaint Against Kidder

The Commodity Futures Trading Commission said Tuesday that it filed a five-count complaint against Kidder, Peabody & Co. and a Kidder vice president as well as a Chicago futures firm and two of its traders.

According to a statement released in Washington, the CFTC charged that the respondents violated the Commodity Exchange Act and commission regulations “by executing non-competitive trades and trades which resulted in false prices being reported.”

Named in the complaint were O’Connor Futures Inc. of Chicago and Randall Mayne and Michael Carusillo, two of its traders.

In addition, the CFTC charged that New York-based Kidder Peabody and Joseph R. Schmuckler, one of the firm’s vice presidents, engaged in illegal cross trades, improperly filled customer orders and failed to record customer orders.

Kidder Peabody could not be reached for comment late Tuesday.

In a related case, the commission filed a one-count complaint against Randall Mayne, Michael Tolar and James Daubert, all of O’Connor Futures, charging that they failed to prepare accurate trading records.

The CFTC said the respondents could be suspended, stripped of their registrations and could face civil penalties of up to $100,000 for each violation of the Commodity Exchange Act and commission regulations.

Attempts to reach employees of O’Connor Futures mentioned in the complaint were unsuccessful late Tuesday. Mayne and Daubert were not at home, and telephone numbers for Tolar and Carusillo were not listed in the Chicago directory assistance.