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A new case was filed on April 9, 2010 against DFA and others. The amount of information in the court documents is startling.
The CFTC agreement on December 16, 2008 lists Gary Hanman, Gerald Bos and two executives from Keller's creamery. But, in this case, on page 24, line 119, "Defendant Millar explained to John Wilson, DFA's Corporate Vice President of Marketing, that DFA should purchase CME spot cheese "strongly" at $1.80 per pound." Other DFA officials appear to have knowledge of the price manipulation.
On page 25, line 127, "The CME cheese price closed at $1.80 every day from May 21 to June 22, 2004. This is because DFA -- which already had too much cheese in would have to dump (largely overseas) but cheese it was purchasing -- had agreed with the other defendants to buy and fix the price at $1.80."
Dumping overseas, raises another question regarding the Cooperatives Working Together program. What was CWT's deal?
While DFA has alleged to have helped farmers milk checks with these dealings in 2004, DFA in fact, depooled, meaning that no benefit was seen by dairy farmers.
On page 36, line 194, "First, the CME is not a wrongdoer here but had statutory and other duties to investigate, prevent and punish manipulation. But the CME repeatedly made statements to the fact that the CME believed that their market had integrity and that there have been no manipulation." The court documents and goes on to quote an Andy Martin The Chicago Tribune (December 30, 2004).
This case is primarily an antitrust case involving price manipulation. However, on page 45 sixth claim "Violation of Racketeering Influenced and Corrupt Practice Act" otherwise known as RICO.
According to Wikipedia:
“The Racketeer Influenced and Corrupt Organizations Act (commonly referred to as RICO Act or RICO) is a United States federal law that provides for extended criminal penalties and a civil cause of action for acts performed as part of an ongoing criminal organization. RICO was enacted by section 901(a) of the Organized Crime Control Act of 1970 (Pub.L. 91-452, 84 Stat. 922, enacted October 15, 1970). RICO is codified as Chapter 96 of Title 18 of the United States Code, 18 U.S.C. § 1961–1968. While its intended use was to prosecute the Mafia as well as others who were actively engaged in organized crime, its application has been more widespread.”
While USDA claims to not use the CME in pricing farm milk, the claim is merely a denial of the obvious. At some point, USDA needs to question the attachment of their formula to corruption.