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.
‘Enforcement 40’ for 2020
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