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Serving: IA

Dairy Group, Ex-Execs to Pay

Agreement reached to pay $12 million.

The nation's largest dairy cooperative and two former officers have agreed to pay a total of $12 million as part of a federal investigation into a possible price manipulation scheme.

The Commodity Futures Trading Commission has been investigating the Dairy Farmers of America for a series of 2004 trades of cheese futures on the Chicago Mercantile Exchange (nyse: CME - news - people ). The price of cheese futures can affect milk prices.

Under the agreement announced Tuesday, a former chief executive of the cooperative, Gary Hanman, and former Chief Financial Officer Gerald Bos will pay part of the penalty.

The Kansas City-based cooperative said it wasn't admitting or denying wrongdoing but agreed to settle "to put this matter behind us."

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