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Cayley Investment Management fined $150,000 for wash sales



The Commodity Futures Trading Commission (CFTC) ordered Mehran Khorrami and his New York firm, Cayley Investment Management, LLC (CIM) to pay a fine in the amount of $150,000 for engaging in wash sales and non-competitive transactions.

CFTC found that Khorrami as representative of CIM, engaged in multiple wash sales and non-competitive transactions for client accounts. The transactions contained foreign currency, crude oil and gold futures contracts.

CFTC offices

The Commission also found that on 8 February 2018, Khorrami placed simultaneous buy and sell orders in six different CME futures contracts. After being unable to fill the orders, Khorrami repeatedly modified them until the bid and offer price matched, resulting in a series of pre-arranged cross trades in contracts for crude oil, British Pound, Euro FX, Swiss Franc and Japanese Yen. Khorrami and CIM made six non-competitive prearranged trades in total.

CFTC ordered Khorrami and CIM to cease and desist from further violations of the Commodity Exchange Act and CFTC regulations in addition to imposing a $150,000 civil monetary penalty.

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Cayley Investment Management fined $150,000 for wash sales

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