The U.S. Commodity Futures Trading Commission announced that it has settled charges against a former Bank of Montreal executive for supervisory failures.

The CFTC said that it entered into a consent order settling charges brought against Robert Moore, former executive managing director for BMO’s commodity derivatives group, for supervisory failures relating to a case of mis-marking and mis-valuing in a trader’s natural gas options book.

The order stems from a CFTC complaint filed on November 18, 2008, that charged a former BMO trader with unlawfully mis-marking his natural gas options positions between May 2003 and May 2007 and with mis-valuing other natural gas options positions from October 2006 until May 2007, among other things.

The trader settled the action against him last November. He was required to pay a $500,000 civil monetary penalty, and was permanently banned from any commodity-related trading.

Moore was the trader’s direct supervisor at BMO, and he was charged with controlling person liability for Lee’s violations.

The federal court order, entered on March 8 by a judge in the U.S. District Court for the Southern District of New York, requires Moore to pay a $150,000 civil monetary penalty within 10 days.

The order also permanently prohibits Moore from engaging in any conduct in violation of the Commodity Exchange Act and/or CFTC regulations concerning any commodity options transaction.

IE