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The Commodity Futures Trading Commission has suspended and fined...

KANSAS CITY, Mo. -- The Commodity Futures Trading Commission has suspended and fined five traders at the Kansas City Board of Trade for their parts in a controversial 1983 'wash trading' stock-index futures trading deal, officials with the regulatory commission said Thursday.

The five traders agreed to the suspensions and penalties without admitting guilt or innocence and agreed not to violate trading regulations in the future.

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The fines were set between $2,500 and $30,000 and suspensions ranged from 5 working days to 22, the commission said.

The five traders were identified as W. Michael Farmer, Stephen O. Theis, Nora Jo Bumgarner, Glen E. Littleton, and David B. Dreher.

The actions are a result of charges the commission brought against eight traders, the Kansas City exchange, and Merrill Lynch Futures Inc., in November 1984.

The commission charged the parties with illegally trading in the exchange's Value Line stock-index futures contract with so-called 'wash trading', or a prearranged transaction designed to give the illusion of increased futures trading activity.

The Kansas City exchange, which the commission charged with delaying an investigation into the practices, was fined $60,000 and settled with the regulatory agency at the time the charges were filed.

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Merrill Lynch Futures, in November, agreed to pay a $50,000 fine.

Settlement offers submitted to the commission by two of the eight brokers, identified as Stanley T. Jones and Richard B. Hartzell, are still under consideration.

The remaining broker, Stenley W. Koenig Jr., has not submitted a settlement proposal, and the commission said it is considering legal action against Koenig.

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