2022-09-02 sec-litreleases litigation_release 65 KB 2,281 chars

SEC v. David Pope, No. LR-25497, District of Minnesota (Sept. 2, 2022) — Press Release

raw: David Pope

David Pope, No. 0:22-CV-02155 (Sept. 2, 2022)

Caption
Securities and Exchange Commission v. David Pope
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summary

The SEC charged former CHS Inc. trader David Pope with manipulating rail freight contract values and quantities to smooth financial results, seeking injunctions and penalties.

paragraph

Former CHS Inc. rail freight trader David Pope was charged by the SEC for reporting false values and fictitious shuttle contracts to manipulate financial results. His misconduct forced CHS to restate its financial statements from 2014 through 2018. The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties for violations of the Securities Act and Exchange Act.

narrative

The Securities and Exchange Commission charged David Pope, a former rail freight trader for the agricultural cooperative CHS Inc., with accounting fraud. Pope allegedly manipulated the values and quantities of rail freight contracts and reported fictitious shuttle contracts to smooth out his trading desk's financial results. To conceal his misconduct, he also provided altered emails to the company's external auditor. These actions caused CHS to restate its publicly filed financial statements for the period of 2014 through 2018. The SEC's complaint in the U.S. District Court for the District of Minnesota alleges violations of various antifraud and books-and-records provisions. The SEC is seeking permanent injunctions, disgorgement with prejudgment interest, and civil penalties against Pope. Separately, CHS agreed to a cease-and-desist order regarding certain Exchange Act violations without admitting or denying the findings.

Enriched metadata

Scheme
accounting-fraud (100%)
Court
District of Minnesota
Case No.
0:22-CV-02155
Outcome
settled
Entity
David Pope
Classified accounting-fraud(confidence 100%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 80% / precision 48%. detection rule →
Statutes
Section 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionDavid Pope
Keywords
popeexchangedavid popesecurities exchangerail freightdavidexchange commissionsecuritiessecrailfreightcontractsfreight traderseptember securitiescommission david

Exhibits & Attached Documents (1)

Extracted insights

Entities 6
  • person b. david fraser
  • company chs inc.
  • person david pope
  • person litigation against david pope
  • agency Securities and Exchange Commission
  • agency the securities and exchange commission investigation
Triples 13
  • Securities And Exchange Commission charged David Pope
  • David Pope manipulated Values And Quantities Of Certain Of The Company's Rail Freight Contracts
  • CHS Inc. restated Its Publicly Filed Financial Statements From 2014 Through 2018
  • David Pope reported False Values For Shuttle Loader Train Contracts To CHS's Accountants
  • David Pope reported Fictitious Shuttle Contracts To CHS's Accountants
  • David Pope provided Altered Emails Concerning CHS's Shuttle Contracts To The Company's External Auditor
  • Securities And Exchange Commission Complaint charges David Pope With Violating Antifraud Provisions Of Section 17(a) Of The Securities Act Of 1933 And Section 10(b) Of The Securities Exchange Act Of 1934
  • Securities And Exchange Commission seeks Permanent Injunctions, Disgorgement With Prejudgment Interest, And a Civil Penalty
  • CHS Inc. agreed To Cease And Desist From Violations Of Exchange Act Sections 13(a), 13(b)(2)(A), 13(b)(2)(B) And Rules 12b-20, 13a-1, 13a-11, 13a-13
  • Jason Rose And Laura Bennett conducted The Securities And Exchange Commission Investigation
  • David Reece And Eric Werner supervised The Securities And Exchange Commission Investigation
  • Mr. Reece will lead Litigation Against David Pope
  • B. David Fraser will supervise Litigation Against David Pope
PDF (from attached: complaint)
SEC v. DAVID POPE · Source
Text layers
Extracted body text (2,281c) 
Securities and Exchange Commission SEC Charges Former Rail Freight Trader with Accounting Fraud Litigation Release No. 25497 / September 2, 2022 Accounting and Auditing Enforcement No. 4331 / September 2, 2022 Securities and Exchange Commission v. David Pope, No. 0:22-CV-02155 (D. Minn. filed September 2, 2022) The Securities and Exchange Commission today charged David Pope, a rail freight trader formerly employed by agricultural cooperative CHS Inc., for manipulating the values and quantities of certain of the company's rail freight contracts. In December 2018, CHS restated its publicly filed financial statements from 2014 through 2018 to correct errors caused by Pope. As alleged by the SEC, Pope reported false values for shuttle loader train contracts to CHS's accountants in an effort to smooth out the rail freight trading desk's financial results. According to the SEC's complaint, he also reported fictitious shuttle contracts to the company's accountants for the same purpose. The SEC further alleged that Pope provided altered emails concerning CHS's shuttle contracts to the company's external auditor to conceal his misconduct. The SEC's complaint against Pope, filed in U.S. District Court for the District of Minnesota, charges him with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. The complaint also charges him with violating Exchange Act Section 13(b)(5) and Rule 13b2-1 thereunder, and with aiding and abetting violations of Exchange Act Sections 13(a) and 13(b)(2)(A) and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and a civil penalty. In a separate proceeding, without admitting or denying the SEC's findings, CHS agreed to cease and desist from committing or causing any violations of Exchange Act Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. The SEC's investigation was conducted by Jason Rose and Laura Bennett and was supervised by David Reece and Eric Werner. The litigation against Pope will be led by Mr. Reece under the supervision of B. David Fraser. SEC Complaint
OCR text (2,281c · html-text · 99% conf) 
Securities and Exchange Commission SEC Charges Former Rail Freight Trader with Accounting Fraud Litigation Release No. 25497 / September 2, 2022 Accounting and Auditing Enforcement No. 4331 / September 2, 2022 Securities and Exchange Commission v. David Pope, No. 0:22-CV-02155 (D. Minn. filed September 2, 2022) The Securities and Exchange Commission today charged David Pope, a rail freight trader formerly employed by agricultural cooperative CHS Inc., for manipulating the values and quantities of certain of the company's rail freight contracts. In December 2018, CHS restated its publicly filed financial statements from 2014 through 2018 to correct errors caused by Pope. As alleged by the SEC, Pope reported false values for shuttle loader train contracts to CHS's accountants in an effort to smooth out the rail freight trading desk's financial results. According to the SEC's complaint, he also reported fictitious shuttle contracts to the company's accountants for the same purpose. The SEC further alleged that Pope provided altered emails concerning CHS's shuttle contracts to the company's external auditor to conceal his misconduct. The SEC's complaint against Pope, filed in U.S. District Court for the District of Minnesota, charges him with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. The complaint also charges him with violating Exchange Act Section 13(b)(5) and Rule 13b2-1 thereunder, and with aiding and abetting violations of Exchange Act Sections 13(a) and 13(b)(2)(A) and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and a civil penalty. In a separate proceeding, without admitting or denying the SEC's findings, CHS agreed to cease and desist from committing or causing any violations of Exchange Act Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. The SEC's investigation was conducted by Jason Rose and Laura Bennett and was supervised by David Reece and Eric Werner. The litigation against Pope will be led by Mr. Reece under the supervision of B. David Fraser. SEC Complaint

Related documents (1)