United States CFTC Fines Singapore-Based Supply Chain Manager Olam Group $3.25 Million for Providing False, Misleading & Inaccurate Reports of $190 Million Cotton Sale to United States CFTC & Department of Agriculture
30th September 2024 | Hong Kong
The United States Commodity Futures Trading Commission (CFTC) has fined Singapore-based supply chain manager Olam Group $3.25 million for providing false, misleading & inaccurate reports of $190 million cotton sale to the United States CFTC & Department of Agriculture. United States CFTC (27/9/24): “The Commodity Futures Trading Commission today issued an order filing and settling charges against Olam Group Ltd., a Singapore-based integrated supply chain manager, for submitting false, misleading, or inaccurate reports to the CFTC and the U.S. Department of Agriculture in connection with the sale of U.S. cotton worth more than $190 million. The order requires Olam to pay a $3,250,000 civil monetary penalty and to cease and desist from further violations of the Commodity Exchange Act and CFTC regulations, as charged. Case Background – The order finds in August and September 2021, Olam made five sales of U.S. cotton to a counterparty in Asia that is typically one of the largest global purchasers of cotton. In the aggregate, Olam sold more than 375,000 bales of cotton with a sales value of more than $190 million to this counterparty. The order finds rather than immediately reporting those sales to USDA and the CFTC promptly as required, certain Olam employees diverged from Olam’s standard practices, causing the sales to be reported between one to five weeks late. The export sales data Olam submits to USDA is incorporated into weekly and monthly reports published by USDA that are important indicators of supply and demand for both futures traders and participants in the physical cotton markets. The order states Olam employees knew or recklessly disregarded the fact that Olam’s reports to USDA did not reflect the five sales at the time they occurred. The order further finds Olam knew the price of cotton is affected or tends to be affected by sales of this magnitude appearing or not appearing in USDA reports, and that information indicating Olam’s counterparty might be purchasing large quantities of U.S. cotton is a significant market indicator that affects or tends to affect the price of cotton. The order also finds Olam reported inaccurate fixed-price sales data on seven Form 304s it submitted to the CFTC from Aug. 6 through Sept. 17, 2021. Even though those reports identified other fixed-price sales, they did not include the five sales to the Asian counterparty. The order acknowledges Olam’s cooperation with the investigation of this matter, and its representations concerning its remediation in connection with this matter.”
“ United States CFTC Fines Singapore-Based Supply Chain Manager Olam Group $3.25 Million for Providing False, Misleading & Inaccurate Reports of $190 Million Cotton Sale to United States CFTC & Department of Agriculture “
United States CFTC Fines Singapore-Based Supply Chain Manager Olam Group $3.25 Million for Providing False, Misleading & Inaccurate Reports of $190 Million Cotton Sale to United States CFTC & Department of Agriculture
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- July 2024 - Hong Kong
- July 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Oct 2024 - Hong Kong
- Nov 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
