Missouri man sentenced for fraud

A man from Missouri has been sentenced in federal court for leading a $4.7 million investment fraud scheme where he defrauded investors who thought he was turning major profits reselling cattle. On March 5, Cameron J. Hager, 43, was sentenced to eight years in federal prison without parole following a ruling by U.S. District Judge Gary A. Fenner. In addition, Hager was ordered by the court to pay $3,236,547 in restitution to the victims of his crime.

Hager from Clinton, Mo., pleaded guilty to one count of wire fraud and one count of money laundering on June 26, 2018. He was charged with the crimes on March 28, 2018, and was taken into police custody at that time. Hager defrauded 92 investors through a business called 5A Holdings, LLC, where he set up a “cattle fund” from July 2015 to September 2017.

Investors gave Hager money to purchase herds of cattle that he said he could sell for substantial profit. However, Hager never bought any cattle and he never intended to do so. Victims of the fraud were told by Hager he was buying cattle from farmers in financial distress who were willing to sell at lower prices. The investors believed Hager was going to use the funds to acquire cattle, transport them to his own pasture to gain weight and then be sold to slaughterhouses for a profit. Hager told investors they would receive a net “return” ranging from 23 to 28 percent. Investments ranged from $1,000 to $267,000, to total $4.7 million sent to Hager’s cattle fund.

NFA bars membership

NFA has barred former El Segundo, Calif., commodity pool operator Quants Capital Management, Inc. (Quants) and its former principal and associated person Gokhan Kisacikoglu from membership for one year. NFA also permanently barred Quants and Kisacikoglu from acting as a principal of an NFA Member.

The decision, issued by an NFA Hearing Panel, is based on a Complaint issued by NFA’s Business Conduct Committee.

The hearing panel found that Quants and Kisacikoglu used misleading and deceptive promotional material that included unsubstantiated positive performance information and presented hypothetical information as if it were actual performance. The hearing panel also found that Quants failed to prepare and distribute required monthly account statements.

Corn analysis

Corn closed the week $.08 3/4 higher. Last week, private exporters did not announce any export sales.

U.S. corn exports last week of 30.1 million bushels were below market expectations were down from the previous week’s 34.1 mb and were well below year ago same-week exports of 54.2 mb and were below the roughly 42.7 million bushels/week that corn exports will need to run through the end of August in order to reach the USDA’s recently lowered 2.375 billion bushel export projection.

Corn exports have fallen below the average “needed” pace in each of the last seven weeks. In the weekly EIA report; ethanol production fell to 1,005K barrels per day in the week ending March 8, down from 1,024K the previous week and down from 1,025K the previous year. Ethanol stocks fell to 23.7 million barrels versus a record-tying 24.3 million the previous week and that same 24.3 million the previous year.

Stratgey and outlook

Producers should look to sell the carry for spring or summer months and use options to re-own and manage risk. Don’t store unpriced crop.

Soybeans analysis

Soybeans closed the week $.14 1/4 higher. Last week, private exporters announced sale of 926,000 mts soybeans to China.

U.S. soybean exports for the week ended 3/07/19 were 32.1 mb and were in line with the previous week’s 31.2 mb, but a bit below last year’s same-week exports of 34.2 mb. Soybean shipments will need to average roughly 32.0 mb/week through the end of August in order to reach the USDA’s current export.

NOPA crush reported February crush was 154.498 mb, below estimates of 158.7 mb and down from last month of 171.6 mb. It was still the largest February crush on record, beating last year’s 153.7 which was the previous record.

Oil stocks of 1.752 billion pounds was much larger than expected and larger than last month of 1.549 billion pounds.

Strategy and outlook

Producers should look to sell the carry for spring or summer months and use options to re-own and manage risk. Don’t store unpriced crops.

This material has been prepared by a sales or trading employee or agent of Midwest Market Solutions and is, or is in the nature of, a solicitation. This material is not a research report prepared by Midwest Market Solution’s Research Department. The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that Midwest Market Solutions believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such.

Brian Hoops can be reached at (605) 660-1155.