Case: 1:15-cv-05839 Document#: 1 Filed: 07/01/15 Page 1 of 14 PageiD #:1 UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION U.S. COMMODITY FUTURES TRADING COMMISSION, Plaintiff, vs. YUMIN LI, and KERING CAPITAL LTD, Defendants KERING CAPITAL LTD, Relief Defendant. Civil Action No: Judge Jury Demanded COMPLAINT FOR INJUNCTIVE AND OTHER EQUITABLE RELIEF AND CIVIL MONETARY PENALTIES UNDER THE COMMODITY EXCHANGE ACT The U.S. Commodity Futures Trading Commission ("CFTC" or "Commission"), by and through its attorneys, hereby alleges as follows: I. SUMMARY 1. On six trading dates from March 17, 2015 to May 6, 2015 ("Relevant Period"), Defendant Yumin Li ("Li") fraudulently accessed and improperly traded her employer's account in order to move approximately $300,000 to Defendant Kering Capital Ltd. ("Kering Capital") (the individual and corporation, collectively, "Defendants"). By structuring the transactions such that her employer's account would always buy at higher prices and sell at lower prices opposite an account Li controlled at Kering Capital, Li was able to conduct a "money pass" between the two accounts in favor of the Kering Capital account.
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Complaint: Yumin Li and Kering Capital Ltd.lrenforcementactions/...YUMIN LI, and KERING CAPITAL LTD, Defendants KERING CAPITAL LTD, Relief Defendant. Civil Action No: Judge Jury Demanded
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48. Kering Capital should be required to disgorge funds up to the amount of funds it
received as a result ofLi's unlawful conduct or the value of those funds that it may have
subsequently transferred to third parties.
VI. RELIEF REQUESTED
WHEREFORE, the Commission respectfully requests that this Court, as authorized by
Section 6c ofthe Act, 7 U.S.C. § 13a-1 (2014), and pursuant to its own equitable powers:
A. Enter an order finding Defendants liable for violating Sections 4b(a)(l)(A) and
(C) and Section 4c(a) ofthe Act, 7 U.S.C. § § 6b(a)(l)(A),(C) and 6c(a) (2012), and Commission
Regulation 1.38(a), 17 C.P.R. §1.38(a) (2014);
B. Enter a statutory restraining order restraining and enjoining Defendants, and any
successors thereof, and all persons insofar as they are acting in the capacity of Defendants'
agents, servants, successors, employees, assigns, and attorneys, and all persons insofar as they
are acting in active concert or participation with Defendants who receive actual notice of such
order by personal service or otherwise, from directly or indirectly:
1. Destroying, mutilating, concealing, altering, or disposing of any books and records, documents, correspondence, brochures, manuals, electronically stored data, tape records, or other property of Defendants, wherever located, including all such records concerning Defendants' business operations;
2. Refusing to permit authorized representatives of the Commission to inspect, when and as requested, any books and records, documents, correspondence, brochures, manuals, electronically stored data, tape records, or other property of Defendants, wherever located, including all such records concerning Defendants' business operations; and
3. Withdrawing, transferring, removing, dissipating, concealing, or disposing of, in any manner, any funds, assets, or other property, wherever situated, associated with the illegal conduct alleged above including, but not limited to, all funds on deposit in any futures trading account owned or controlled by a Defendant, including but not limited to Kering Capital 0256 and an account in the name ofLi, account number XXXX0253;
C. Enter orders of preliminary and permanent injunction prohibiting Defendants and
any other person or entity associated with them, including successors thereof, from:
1. Engaging in conduct in violation of Sections 4b(a)(l)(A) and (C) and 4c(a) ofthe Act, 7 U.S.C. §§ 6b(a){l)(A), {C), and 6c(a), and Regulation 1.38(a), 17 C.F.R. § 1.38(a);
2. Trading on or subject to the rules of any registered entity (as that term is defined in Section 1a(29) of the Act, 7 U.S.C. § 1a(29));
3. Entering into any transactions involving "commodity interests" (as that term is defined in regulation 1.3(yy), 17 C.F.R. § 1.3(yy) (2014), for accounts held in the name of any Defendant or for accounts in which any Defendant has a direct or indirect interest;
4. Having any interests traded on any Defendants' behalf;
5. Controlling or directing the trading for or on behalf of any other person or entity, whether by power of attorney or otherwise, in any account involving commodity interests;
6. Soliciting, receiving, or accepting any funds from any person for the purpose of purchasing or selling any interests;
7. Applying for registration or claiming exemption from registration with the Commission in any capacity, and engaging in any activity requiring such registration or exemption from registration with the Commission, except as provided for in Regulation 4.14(a)(9), 17 C.F.R. § 4.14(a)(9) (2014); and
8. Acting as a principal (as that term is defined in Regulation 3.1(a), 17 C.F.R. § 3.l(a) (2014)), agent, or any other officer or employee of any person registered, exempted from registration or required to be registered with the CFTC except as provided for in Regulation 4.14(a)(9), 17 C.F.R. § 4.14(a)(9) (2014).
D. An order requiring each Defendant to pay civil penalties under the Act, to be
assessed by the Court, in amounts of not more than the higher of (1) triple the monetary gain for
each violation of the Act; or (2) $140,000 for each violation of the Act and Commission
Is/ Lindsey Evans Lindsey Evans (IL ARDC No. 6286125) Commodity Futures Trading Commission 525 West Monroe Street, Suite 1100 Chicago, Illinois 60661 (312) 596-0643 [email protected]
David Terrell ([email protected]) IL ARDC No. 6196293 Scott Williamson ([email protected]) IL ARDC No. 6191293 Rosemary Hollinger ([email protected]) IL ARDC No. 3123647 Commodity Futures Trading Commission 525 West Monroe Street, Suite 1100 Chicago, Illinois 60661 (312) 596-0700