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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF WASHINGTON

COMMODITY FUTURES TRADING 

COMMISSION, 

Plaintiff,

v. 

CODY EASTERDAY, 

Defendant.

No. 4:21-CV-05050-SAB

ORDER GRANTING JOINT 

MOTION; CONSENT ORDER

Before the Court is the parties’ Joint Motion for Entry of Consent Order, 

ECF No. 41. The motion was heard without oral argument. Plaintiff is represented 

by Allison Passman, Ashley Burden and Benjamin Sedrish. Defendant is 

represented by Andrew Wagley and Carl Oreskovich. 

The parties indicate they have reached a settlement in the above-captioned 

action and ask the Court to enter a mutually-agreed-upon Consent Order. 

Accordingly, IT IS HEREBY ORDERED: 

1. The parties’ Joint Motion for Entry of Consent Order, ECF No. 41, is

GRANTED. 

2. The Court enters the following Consent Order:

//

//

//

FILED IN THE

U.S. DISTRICT COURT

EASTERN DISTRICT OF WASHINGTON

SEAN F. MCAVOY, CLERK 

Jun 05, 2023

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CONSENT ORDER FOR CIVIL MONETARY PENALTY, KPERMANENT 

INJUNCTION, AND OTHER EQUITABLE RELIEF

I. INTRODUCTION

On March 31, 2021, Plaintiff Commodity Futures Trading Commission 

(“Commission” or “CFTC”) filed a Complaint against Defendant Cody Easterday

(“Easterday” or “Defendant”) seeking injunctive and other equitable relief, as well 

as the imposition of civil penalties, for violations of the Commodity Exchange Act 

(“Act”), 7 U.S.C. §§ 1–26, and the Commission’s Regulations (“Regulations”) 

promulgated thereunder, 17 C.F.R. pts. 1–190 (2022). 

II. CONSENTS AND AGREEMENTS

To effect settlement of all charges alleged in the Complaint without a trial on 

the merits or any further judicial proceedings, Defendant Cody Easterday: 

1. Consents to the entry of this Consent Order for Civil Monetary Penalty, 

Permanent Injunction, and Other Equitable Relief Against Defendant Cody

Easterday (“Consent Order”);

2. Affirms that he has read and agreed to this Consent Order voluntarily, 

and that no promise, other than as specifically contained herein, or threat, has 

been made by the CFTC or any member, officer, agent, or representative 

thereof, or by any other person, to induce consent to this Consent Order;

3. Acknowledges service of the summons and Complaint;

4. Admits the jurisdiction of this Court over him and the subject matter of 

this action pursuant to Section 6c of the Act, 7 U.S.C. § 13a-1;

5. Admits the jurisdiction of the CFTC over the conduct and transactions at 

issue in this action pursuant to the Act;

6. Admits that venue properly lies with this Court pursuant to 7 U.S.C. 

§ 13a-1(e);

7. Waives:

a) Any and all claims that he may possess under the Equal Access to 

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Justice Act, 5 U.S.C. § 504 and 28 U.S.C. § 2412, and/or the rules 

promulgated by the Commission in conformity therewith, Part 148 

of the Regulations, 17 C.F.R. pt. 148 (2022), relating to, or arising 

from, this action;

b) Any and all claims that he may possess under the Small Business 

Regulatory Enforcement Fairness Act of 1996, Pub. L. No. 104-

121, tit. II, §§ 201–53, 110 Stat. 847, 857–74 (codified as amended 

at 28 U.S.C. § 2412 and in scattered sections of 5 U.S.C. and 

15 U.S.C.), relating to, or arising from, this action; 

c) Any claim of Double Jeopardy based upon the institution of this 

action or the entry in this action of any order imposing a civil 

monetary penalty or any other relief, including this Consent Order; 

and 

d) Any and all rights of appeal from this action;

8. Consents to the continued jurisdiction of this Court over him for the 

purpose of implementing and enforcing the terms and conditions of this 

Consent Order, even if Easterday now or in the future resides outside the 

jurisdiction of this Court; 

9. Agrees that he will not oppose enforcement of this Consent Order on 

the ground, if any exists, that it fails to comply with Rule 65(d) of the 

Federal Rules of Civil Procedure and hereby waives any objection based 

thereon;

10. Agrees that neither he nor any of his agents or employees under his

authority or control shall take any action or make any public statement 

denying, directly or indirectly, any allegation in the Complaint or the 

Findings of Fact or Conclusions of Law in this Consent Order, or creating or 

tending to create the impression that the Complaint and/or this Consent 

Order is without a factual basis; provided, however, that nothing in this 

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provision shall affect his: (a) testimonial obligations; or (b) right to take 

legal positions in other proceedings to which the CFTC is not a party. 

Easterday shall comply with this agreement, and shall undertake all steps 

necessary to ensure that all of his agents and/or employees under his

authority or control understand and comply with this agreement; 

11. Admits to all of the findings made in this Consent Order and all of the 

allegations in the Complaint;

12. Agrees to provide immediate notice to this Court and the CFTC by 

certified mail, in the manner required by paragraph 39 of this Consent Order, 

of any bankruptcy proceeding filed by, on behalf of, or against him, whether 

inside or outside the United States; and

13. Agrees that no provision of this Consent Order shall in any way limit or 

impair the ability of any other person or entity to seek any legal or equitable 

remedy against him in any other proceeding.

III. FINDINGS OF FACT AND CONCLUSIONS OF LAW

The Court, being fully advised in the premises, finds that there is good cause 

for the entry of this Consent Order and that there is no just reason for delay. The 

Court therefore directs the entry of the following Findings of Fact, Conclusions of 

Law, permanent injunction, and equitable relief pursuant to Section 6c of the Act, 

7 U.S.C. § 13a-1, as set forth herein. 

THE PARTIES AGREE AND THE COURT HEREBY FINDS:

A. Findings of Fact

Parties

14. Plaintiff Commodity Futures Trading Commission is an independent 

federal regulatory agency that is charged by Congress with administering 

and enforcing the Act and the Regulations.

15. Defendant Cody Easterday is an individual who, during all times 

relevant to the Complaint, was a co-owner of Easterday Ranches

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16. Easterday has never been registered with the Commission in any 

capacity. 

17. Easterday Ranches, which is not a party to this Consent Order, was a 

private Washington corporation with its principal place of business in 

Pasco, Washington. Easterday Ranches commenced a case under chapter 11 

of Title 11 of the United States Code on February 1, 2021, known as In re 

Easterday Ranches, Inc., No. 21-BK-141 (Bankr. E.D. Wash. Feb. 1, 2021)

(the “Bankruptcy Proceeding”). Easterday Ranches has never been 

registered with the Commission in any capacity.

18. Beginning in at least June of 2010 and continuing through 2020, 

Easterday Ranches entered into a series of cattle feeding agreements 

(“Cattle Feeding Agreements”) with Tyson Fresh Meats, Inc. (“Tyson”).

19. Under the Cattle Feeding Agreements, Easterday Ranches agreed to 

procure cattle on behalf of Tyson and provide feeding space for the cattle 

until they were sent for slaughter at Tyson’s plant located in Pasco, WA. 

Also under the Cattle Feeding Agreements, Tyson agreed to reimburse 

Easterday Ranches for the purchase costs of the cattle and for the costs 

associated with growing and feeding the purchased cattle to market weight. 

20. Between approximately 2016 and November 2020 (“Relevant Period”), 

Easterday operated a scheme to defraud Tyson out of more than $233 

million by submitting fabricated invoices for reimbursement for cattle and 

feed. 

21. During the Relevant Period, Easterday caused Easterday Ranches to 

submit fabricated invoices to Tyson employees for reimbursement of the 

costs associated with procuring cattle that were never actually purchased 

and caring for cattle that did not actually exist. These fabricated invoices 

were submitted for the purpose of obtaining money to which Easterday and

Easterday Ranches were not entitled.

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22. As a result of the misstatements contained in the fabricated invoices, 

Tyson paid Easterday Ranches $233,008,042 to which Easterday Ranches 

was not entitled. 

23. Further, on or about October 17, 2017 and July 12, 2018, Easterday 

caused Easterday Ranches to submit an application to exceed exchange-set 

position limits that falsely inflated cattle inventory figures to the Chicago 

Mercantile Exchange (“CME”) in two hedge exemption applications to seek 

permission to exceed the exchange’s speculative position limits in live

cattle that otherwise would have applied to Easterday Ranches and avoid 

disciplinary action.

24. Because Easterday Ranches was not entitled to any hedge exemptions 

as a result of the false information in its applications, Easterday caused 

Easterday Ranches to violate CME’s position limits for the trading of live 

cattle futures contracts in 2017 and 2018 without obtaining a valid hedge 

exemption from the CME to do so. 

B. Conclusions of Law

Jurisdiction and Venue

25. This Court possesses jurisdiction over this action pursuant to 28 U.S.C. 

§ 1331 (codifying federal question jurisdiction) and 28 U.S.C. § 1345 

(providing that U.S. district courts have original jurisdiction over civil 

actions commenced by the United States or by any agency expressly 

authorized to sue by Act of Congress). Section 6c(a) of the Act, 7 U.S.C. 

§ 13a-1(a), provides that the CFTC may bring actions for injunctive relief or 

to enforce compliance with the Act or any rule, regulation, or order 

thereunder in the proper district court of the United States whenever it shall 

appear to the CFTC that any person has engaged, is engaging, or is about to 

engage in any act or practice constituting a violation of any provision of the 

Act or any rule, regulation, or order thereunder. 

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26. Venue properly lies with this Court pursuant to 7 U.S.C. § 13a-1(e), 

because Easterday resides in this jurisdiction and the acts and practices in 

violation of the Act occurred within this District.

Count I: Commodities Fraud

27. By the conduct alleged in Paragraphs 1 through 41 of the Complaint

and Paragraphs 18–22 of this Consent Order, Easterday violated Section 6(c) 

of the Act, 7 U.S.C. § 9(1), and Regulation 180.1(a)(1)–(3), 17 C.F.R. 

§ 180.1(a)(1)–(3) (2022), because he cheated and defrauded, or attempted to 

cheat and defraud, and willfully deceived, or attempted to deceive, Tyson,

by among other things, knowingly or recklessly causing Easterday Ranches 

to submit fraudulent invoices to Tyson. 

Count II: False Statements to a Registered Entity

28. By the conduct described in Paragraphs 28 through 41 of the Complaint,

and Paragraphs 23–24 of this Consent Order, Easterday violated Section 

9(a)(4) of the Act, 7 U.S.C. § 13(a)(4), because he willfully made false, 

fictitious, or fraudulent statements to a registered entity acting in furtherance 

of its official duties under the Act.

Count III: Exceeding Exchange-set Position Limits

29. By the conduct described in Paragraphs 28 through 41 of the Complaint

and Paragraphs 23–24 of this Consent Order, Easterday violated Section 

4a(e) of the Act, 7 U.S.C. § 6a(e), because, as set forth above, Easterday 

caused Easterday Ranches to exceed exchange-set position limits without 

obtaining a valid exemption from the relevant exchange. 

30. In light of the relevant factors and given the nature of Easterday’s 

violations as set forth herein, the Court finds that the prerequisites for 

injunctive relief to preclude similar acts and practices in violation of the Act 

and Regulations, as alleged in the Complaint, are met. 

//

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IV. PERMANENT INJUNCTION

IT IS HEREBY ORDERED THAT: 

31. Based upon and in connection with the foregoing conduct, pursuant to 

Section 6c of the Act, 7 U.S.C. § 13a-1, Easterday is permanently restrained, 

enjoined, and prohibited from directly or indirectly:

a. (1) Using or employing, or attempting to use or employ, 

manipulative devices, schemes, or artifices to defraud; (2) 

making, or attempting to make, untrue or misleading statements 

of a material fact; (3) omitting to state material facts necessary 

in order to make statements made not untrue or misleading; or 

(4) engaging, or attempting to engage, in acts, practices, or 

courses of business, which would operate or would operate as a 

fraud or deceit upon any person in connection with contracts of 

sale of a commodity in interstate commerce, in violation of 

Section 6(c)(1) of the Act, 7 U.S. C. § 9(1), and Regulation 

180.1(a)(1)–(3), 17 C.F.R. § 180.1(a)(1)–(3) (2022); 

b. Willfully making any false, fictitious, or fraudulent statements 

or representations to a registered entity, in violation of Section 

9(a)(4) of the Act, 7 U.S.C. § 13(a)(4); 

c. Violating position limits set by any contract market, derivatives 

transaction execution facility, or other board of trade, in 

violation of Section 4a(e) of the Act, 7 U.S.C. § 6a(e). 

32. Easterday is also permanently restrained, enjoined, and prohibited from 

directly or indirectly:

a. Trading on or subject to the rules of any registered entity (as 

that term is defined in Section 1a(40) of the Act, 7 U.S.C. § 

1a(40)); 

b. Entering into transactions involving “commodity interests” (as 

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that term is defined in Regulation 1.3, 17 C.F.R. § 1.3 (2022)) 

for his own personal account or for any account in which he 

may have a direct or indirect interest;

c. Having any commodity interests traded on his behalf; 

d. Controlling or directing the trading for or on behalf of any other 

person or entity, whether by power of attorney or otherwise, in 

any account involving commodity interests;

e. Soliciting, receiving, or accepting any funds from any person 

for the purpose of purchasing or selling any commodity 

interests;

f. Applying for registration or claiming exemption from 

registration with the Commission in any capacity, and engaging 

in any activity requiring such registration or exemption from 

registration with the Commission, except as provided for in 

Regulation 4.14(a)(9), 17 C.F.R. § 4.14(a)(9) (2022); and

g. Acting as a principal (as that term is defined in Regulation 

3.1(a), 17 C.F.R. § 3.1(a)), agent, or any other officer or 

employee of any person (as that term is defined in Section 

1a(38) of the Act, 7 U.S.C. § 1a(38)), registered, exempted 

from registration, or required to be registered with the 

Commission except as provided for in 17 C.F.R. § 4.14(a)(9). 

V. RESTITUTION AND COOPERATION

A. Restitution

33. Defendant’s violations of the Act and Regulations merit an award of 

restitution. However, the Court recognizes that in a related criminal action, 

United States v. Easterday, No. 21-CR-6012, ECF No. 78 (E.D. Wash.), the 

Court ordered that Defendant pay restitution in the amount of two hundred 

forty-four million, thirty-one thousand, one hundred and thirty-two dollars 

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($244,031,132) in connection with the same conduct at issue in this action. 

Accordingly, restitution is not ordered in this action. 

B. Civil Monetary Penalty

34. Defendant shall pay a civil monetary penalty in the amount of one 

million dollars ($1,000,000) (“CMP Obligation”) within 30 days of the date 

of the entry of this Consent Order. If the CMP Obligation is not paid in full 

within thirty days of the date of entry of this Consent Order, post-judgment 

interest shall accrue on the unpaid portion of the CMP Obligation beginning 

on the date of entry of this Consent Order and shall be determined by using 

the Treasury Bill rate prevailing on the date of entry of this Consent Order 

pursuant to 28 U.S.C. § 1961.

35. Defendant shall pay the CMP Obligation and any post-judgment 

interest by electronic funds transfer, U.S. postal money order, certified 

check, bank cashier’s check, or bank money order. If payment is to be made 

other than by electronic funds transfer, the payment shall be made payable to 

the Commodity Futures Trading Commission and sent to the address below:

 MMAC/ESC/AMK326

 Commodity Futures Trading Commission

 6500 S. MacArthur Blvd.

 HQ Room 266

 Oklahoma City, OK 73169

 9-amz-ar-cftc@faa.gov

If payment by electronic funds transfer is chosen, Defendant shall contact Tonia 

King or her successor at the address above to receive payment instructions and 

shall fully comply with those instructions. Defendant shall accompany payment of 

the CMP Obligation with a cover letter that identifies Defendant and the name and 

docket number of this proceeding. Defendant shall simultaneously transmit copies 

of the cover letter and the form of payment to the Chief Financial Officer, 

Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st 

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Street NW, Washington, D.C. 20581.

C. Cooperation

36. Easterday shall cooperate fully and expeditiously with the CFTC, 

including the CFTC’s Division of Enforcement, in this action, and in any 

current or future CFTC investigation or action related thereto. Easterday 

shall also cooperate in any investigation, civil litigation, or administrative 

matter related to, or arising from, this action. 

VI. MISCELLANEOUS PROVISIONS

37. Until such time as Defendant satisfied in full his CMP Obligation 

under this Consent order, upon the commencement by or against Defendant 

of insolvency, receivership or bankruptcy proceedings or any other 

proceedings for the settlement of Defendant’s debts, all notices to creditors 

required to be furnished to the Commission under Title 11 of the United 

States Code or other applicable law with respect to such insolvency, 

receivership, bankruptcy or other proceedings, shall be sent to the address 

below:

 Secretary of the Commission

Office of General Counsel

Commodity Futures Trading Commission

Three Lafayette Centre

1155 21st Street NW

Washington, DC 20581

38. Notice: All notices required to be given by any provision in this 

Consent Order, except as set forth in paragraph 35 above, shall be sent 

certified mail, return receipt requested, as follows:

Robert T. Howell

Deputy Director, Division of Enforcement

Commodity Futures Trading Commission

77 W Jackson Blvd., Suite 800

Chicago, IL 60604

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All such notices to the CFTC shall reference the name and docket number of 

this action.

39. Change of Address/Phone: Until such time as Defendant satisfies in 

full his CMP Obligation as set forth in this Consent Order, Defendant shall 

provide written notice to the Commission by certified mail of any change to 

his telephone number and mailing address within ten calendar days of the 

change.

40. Entire Agreement and Amendments: This Consent Order incorporates 

all of the terms and conditions of the settlement among the parties hereto to 

date. Nothing shall serve to amend or modify this Consent Order in any 

respect whatsoever, unless: (a) reduced to writing; (b) signed by all parties 

hereto; and (c) approved by order of this Court.

41. Invalidation: If any provision of this Consent Order or if the 

application of any provision or circumstance is held invalid, then the 

remainder of this Consent Order and the application of the provision to any 

other person or circumstance shall not be affected by the holding.

42. Waiver: The failure of any party to this Consent Order or of any

customer at any time to require performance of any provision of this 

Consent Order shall in no manner affect the right of the party or customer at 

a later time to enforce the same or any other provision of this Consent Order. 

No waiver in one or more instances of the breach of any provision contained 

in this Consent Order shall be deemed to be or construed as a further or 

continuing waiver of such breach or waiver of the breach of any other 

provision of this Consent Order.

43. Continuing Jurisdiction of this Court: This Court shall retain 

jurisdiction of this action to ensure compliance with this Consent Order and 

for all other purposes related to this action, including any motion by

Easterday to modify or for relief from the terms of this Consent Order.

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44. Injunctive and Equitable Relief Provisions: The injunctive and 

equitable relief provisions of this Consent Order shall be binding upon 

Easterday, upon any person under his authority or control, and upon any 

person who receives actual notice of this Consent Order, by personal service, 

e-mail, facsimile or otherwise insofar as he or she is acting in active concert 

or participation with Easterday. 

45. Counterparts and Facsimile Execution: This Consent Order may be 

executed in two or more counterparts, all of which shall be considered one 

and the same agreement and shall become effective when one or more 

counterparts have been signed by each of the parties hereto and delivered 

(by facsimile, e-mail, or otherwise) to the other party, it being understood 

that all parties need not sign the same counterpart. Any counterpart or other 

signature to this Consent Order that is delivered by any means shall be 

deemed for all purposes as constituting good and valid execution and 

delivery by such party of this Consent Order.

46. Contempt: Easterday understands that the terms of the Consent Order 

are enforceable through contempt proceedings, and that, in any such 

proceedings, he may not challenge the validity of this Consent Order. 

//

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47. Agreements and Undertakings: Easterday shall comply with all of the

undertakings and agreements set forth in this Consent Order.

IT IS SO ORDERED. The Clerk of Court is directed to enter this Order

and forward copies to counsel. 

DATED this 5th day of June 2023. 

Stanley A. Bastian

Chief United States District Judge

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