The U.S. Commodity Futures Trading Commission Files Civil Enforcement Complaint in the U.S. District Court Against Kraft Foods Group, Inc. and Mondelez Global LLC
Apr 3 15
The U.S. Commodity Futures Trading Commission announced the filing of a civil enforcement Complaint in the U.S. District Court for the Northern District of Illinois against Kraft Foods Group, Inc. and Mondelez Global LLC, headquartered in Northfield and Deerfield, Illinois, respectively, for manipulation and attempted manipulation of the prices of cash wheat and wheat futures. The Complaint also alleges that Kraft and Mondelez violated speculative position limits by holding wheat futures positions in excess of speculative position limits established by the CFTC and the Chicago Board of Trade (CBOT) without a valid hedge exemption or a bona fide hedging need, and engaged in numerous noncompetitive trades in CBOT wheat. According to the CFTC Complaint, in response to high cash wheat prices in late Summer 2011, Kraft and Mondelez developed, approved, and executed in early December 2011 a strategy to buy $90 million of December 2011 wheat futures, which amounted to a six-month supply of wheat. The CFTC Complaint alleges that Kraft and Mondelez never intended to take delivery of this wheat and instead executed this strategy expecting that the market would react to their enormous long position by lowering cash wheat prices and strengthening the spread between December 2011 wheat and March 2012 wheat futures. Those price shifts did occur and, according to the CFTC Complaint, Kraft and Mondelez earned over $5.4 million in profits. The CFTC Complaint also alleges that on five dates in early December 2011, Kraft and Mondelez held long positions in December 2011 wheat that exceeded the CBOT™s 600-contract speculative spot month position limit by as much as 2,110 contracts without having a valid hedge exemption in place or a bona fide need for that quantity of wheat. Finally, the CFTC Complaint alleges that beginning in or about 2003 and continuing through January 2014, prior to each of the five annual delivery periods for CBOT wheat, Kraft and Mondelez conducted off-exchange futures transactions between two separate corporate trading accounts that did not comply with exchange rules for noncompetitive, off-exchange futures trades. In its continuing litigation against Kraft and Mondelez, the CFTC seeks a permanent injunction from future violations of federal commodities laws, disgorgement, and civil monetary penalties.
Mondelez Global LLC Enters into Separation Agreement with Mary Beth West
Dec 22 14
On December 16, 2014, Mondelez Global LLC entered into a separation agreement with Ms. Mary Beth West. Under the Agreement, it will continue to employ Ms. West in a full-time capacity through March 31, 2015. The company will employ Ms. West in a part-time capacity beginning April 1, 2015 and continuing through September 30, 2015, her last day of active employment at Mondel z Global.