The Commodity Futures Trading Commission has ordered CHS Hedging to pay a $6.5 million penalty. CHS Hedging reportedly accepted millions of dollars in margin payments from a rancher in Washington without adequately investigating the customer’s source of funds or reporting suspicious activity. This scheme lasted from 2017-to-2020. The rancher involved in this case pled guilty to criminal fraud charges and was sentenced to 11 years in prison.
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