Release: #3996-97 (CFTC Docket # 96-5)

For Release: February 27, 1997

CFTC Accepts Settlement Offer from Mark J. Sitzmann, David E.
    Sitzmann, and Sitzmann Commodities Inc., In Connection with CFTC Action
    Filed in 1996

WASHINGTON--The Commodity Futures Trading Commission (CFTC) announced
    today that it has issued an order accepting an offer of settlement from Mark J. Sitzmann, a former vice-president of commodity management for
    Monfort Inc., a ConAgra subsidiary; David E. Sitzmann of LeMars,
    Iowa, and Sitzmann Commodities Inc. also of LeMars, Iowa , in
    connection with a complaint filed by the CFTC on April 18, 1996. (See CFTC
    News Release #3904-96, April 18, 1996.)

The CFTC order finds that Mark Sitzmann cheated, defrauded and deceived
    Monfort. Specifically, the order finds that Mark Sitzmann was responsible
    for developing and implementing Monfort's hedging strategies. In order to
    perform these responsibilities, Monfort, according to the order, entrusted
    him with non-public and proprietary information regarding its position in
    the cash and futures markets. Although Monfort prohibited all of its
    executives from trading commodity futures contracts, Mark Sitzmann opened
    an account in his brother David's name at Sitzmann Commodities and traded
    based upon the information he had obtained in the course of his employment.
    Mark placed orders for his trading account immediately before placing much
    larger orders for Monfort on the same side of the market in the same
    futures contract. The Monfort orders would move the market, and Mark would
    subsequently exit the position at a profit.

The CFTC order also finds that David Sitzmann aided and abetted Mark
    Sitzmann's fraudulent activities by allowing Mark to open an account in
    David's name at Sitzmann Commodities, placing orders ahead of Monfort's
    orders, funneling all of the money to and from Mark's futures account
    through one of David's checking accounts and filing a false large trader
    report with the Commission representing that he owned and controlled the
    account that was actually Mark's. Finally, the order finds that David
    Sitzmann, as controlling person of Sitzmann Commodities, is liable for
    Sitzmann Commodities' failure to maintain accurate records

Mark Sitzmann, without admitting or denying the findings of the
    Commission order, consented to the entry of a CFTC order:

- finding that he cheated , defrauded and deceived Monfort and failed
      to file a large trader report with the Commission (Sections 4b(a)(i),
      4b(a)(iii), 4i of the CEA and Regulation 18.04);

- directing Mark Sitzmann to cease and desist from further
      violations;

- prohibiting Mark Sitzmann from trading on or subject to the rules of
      any contract market for ten (10) years;

- ordering Mark Sitzmann to comply with his undertaking never to apply
      for registration with the Commission; and

- ordering Mark Sitzmann to pay $50,000 in partial restitution to
      Monfort.

David Sitzmann, without admitting or denying the findings of the
    Commission order, consented to the entry of a CFTC order:

- finding that he aided and abetted Mark Sitzmann in cheating,
      defrauding and deceiving Monfort, filed a false large trader report and
      that he is liable, as controlling person of Sitzmann Commodities, for its
      failure to maintain accurate records (Sections 4b(a)(i), 4b(a)(iii) and
      6(c) of the CEA and Regulations 1.37 and 18.04(a));

- directing David Sitzmann to cease and desist from further
      violations;

- prohibiting David Sitzmann from trading on or subject to the rules of
      any contract market; and

- revoking David Sitzmann's registration.

Sitzmann Commodities, without admitting or denying the findings of the
    Commission order, consented to the entry of a CFTC order:

- finding that it failed to maintain accurate records (Regulation
      1.37);

- directing it to cease and desist from further violations; and

- revoking its registration as an Introducing Broker.