U.S. Commodity Futures Trading Commission (CFTC) amends indictment against Logista Advisors LLC and its CEO Andrew Harris Serotta。

The amended complaint was filed in the Northern District Court of Illinois on November 28, 2023.。

The amended complaint alleges that at least from or around January 2020 to or around April 2020, Logista, through its chief trader, principal and CEO Serotta, engaged in manipulative and deceptive acts and practices in the natural gas futures and crude oil futures markets while placing orders for and trading futures contracts of a registered entity.。

By placing hundreds of orders and intending to cancel these orders before execution, the defendant deliberately sent out false signals of increased interest in buying or selling to trick other market participants into making higher bids or lower asking prices, thereby enabling the defendant to execute orders on the other side of its order book at a favorable price。

This is not the first time that Logista, an energy trading company based in Houston, Texas, has violated 7 U.S.C. § 1-26 and 17 C of the Commission's Regulations..F.R.pts.1-190 (2022).

On September 29, 2017, the U.S. Commodity Futures Trading Commission filed an administrative lawsuit against Logista, issuing an order finding that Logista had inadequately trained, mentored, and supervised an employee who traded crude futures for several months in 2013 and 2014.。

These deficiencies resulted in the employee repeatedly engaging in disruptive trading practices commonly referred to as "deception" when trading on a foreign futures exchange, i.e., bidding or asking for a price with the intention of cancelling his bid or asking price before execution。The committee also found that after the trader's misconduct was discovered by the exchange's compliance department, Logista failed in its obligation to oversee a proper investigation, enabling Logista to respond accurately to the exchange's inquiries.。

Among other things, the 2017 Order requires Logista to cease and desist from failing to diligently supervise the handling of merchandise equity accounts by its employees and officers and other activities related to Logista's business as a registrant of the Commission, in violation of Section 166..Article 3, 17 C.F.R.§ 166.3 (2022)。

During the relevant period, the defendants illegally obtained hundreds of thousands of dollars in proceeds from schemes involving deceptive and deceptive transactions to the detriment of counterparties and other market participants.。

By doing so, the defendant has engaged, is engaging, or is about to engage in fraudulent and manipulative acts and practices in violation of the Act and regulations, in particular Section 4c (a) (5) (C) and Section 6 (c) (1) of the Act, namely 7 U.S.C.§ § 6c.S.C.§ 6c (a) (5) (c), 9 (1) and Regulation 180.1 (a) (1) and (3), 17 C.F.R.§ 180.1 (a) (1), (3) (2022)。

Logista also failed to provide adequate oversight to prevent Serotta from engaging in fraudulent, manipulative and deceptive trading practices.。By these acts, the defendant has engaged, is engaging, or is about to engage in a violation of statute 166.3 (17 C.F.R.§ 166.3 (2022)) and the 2017 Order prohibiting further regulatory dereliction of duty。

The Commission seeks civil fines and remedial ancillary relief, including, but not limited to, trading and registration injunctions, fines, pre- and post-judgment interest and such other relief as the court deems necessary and appropriate。

Unless restricted and prohibited by this Court, it is likely that the defendant will continue to engage in the acts and practices alleged in this indictment and similar acts and practices。