CFTC Enforcement Archives - Page 14 of 52

July 1, 2019

Two whistleblowers have been jointly awarded $2 million for their significant contributions to the CFTC. In addition to coming forward and providing numerous interviews and documents, the whistleblowers also reported the violations to another agency, which conducted its own investigation and shared its findings with the CFTC. CFTC

Tagged in: CFTC Whistleblower Reward Program, Whistleblower Rewards,

June 25, 2019

Merrill Lynch Commodities, Inc. (MLCI) has agreed to pay $25 million for spoofing and manipulating the precious metals market on the Commodity Exchange from 2008 to 2014. In the non-prosecution agreement signed with DOJ, MLCI admitted that its employees had placed thousands of fraudulent orders to create a false sense of demand and induce other market participants to make purchases or sales. CFTC, DOJ

Tagged in: Fraud in CFTC-Regulated Markets, Market Manipulation and Trading Violations, Misrepresentations,

June 24, 2019

The CFTC announced that a single whistleblower has been awarded $2.5 million. Though the award was still substantial, according to the CFTC, it had been reduced due to an unreasonable delay in reporting the violations to the CFTC. CFTC

Tagged in: CFTC Whistleblower Reward Program, Whistleblower Rewards,

May 6, 2019

The CFTC announced it awarded $1.5 million to a single whistleblower. According to the CFTC’s press release, the award related to both a CFTC action and a related action brought by another federal regulator, and, per program rules, was between 10-30% of the amount the government recovered. CFTC

Tagged in: CFTC Whistleblower Reward Program,

May 3, 2019

The CFTC has filed a civil enforcement action against two men and their company, Berkley Capital Management, LLC (BCM), which operates two binary options trading pools, BBOT 1, LP and Berkley II, LP. In order to open pool accounts with the North American Derivatives Exchange (NADEX), defendants Arie Bos of the Netherlands and William Caniff of the U.S. submitted false statements to conceal Caniff’s criminal background, then misappropriated at least $2.3 million from more than $4.8 million that was fraudulently solicited from the pools’ 62 participants. CFTC

Tagged in: Financial and Investment Fraud, Ponzi Schemes,

April 29, 2019

In an enforcement action initiated by the CFTC, Michael Shah and Zilmil, Inc., both of Jacksonville, Florida, have been ordered to pay nearly $23 million for their roles as "affiliate marketers" for unregistered binary options trading schemes, targeting consumers with false and misleading advertising for the trading systems. CFTC

Tagged in: Fraud in CFTC-Regulated Markets, Misrepresentations, Regulatory Violations,

April 2, 2019

After being charged in 2017, Thomas Lanzana, Blackbox Pulse, LLC, Nikolay Masanko, and White Cloud Mountain, LLC have been ordered to pay more than $2.7 million in restitution and civil penalties in connection with their marketing of a foreign exchange trading scheme through which they fraudulently solicited and accepted funds from customers for the purported purpose of trading forex in a commodity pool. In fact, defendants misappropriated customers' funds, fabricated account statements, and misrepresented trades and balances. CFTC

Tagged in: Financial and Investment Fraud, Foreign Exchange, Fraud in CFTC-Regulated Markets, Misrepresentations, Ponzi Schemes,

March 18, 2019

Royal Metals Group, LLC, and part owner, Chelsea Gless have been ordered by the U.S. District Court for the Southern District of New York to pay over $2.3 million for fraudulent misrepresentations and misappropriation of customer funds in a precious metals scheme. The order requires the defendants to pay restitution of $584,549.84 to defrauded customers and a $1,753,647 civil monetary penalty. The defendants are also permanently banned from trading regulated commodities and registering with the CFTC. CFTC

Tagged in: Fraud in CFTC-Regulated Markets, Misrepresentations,

March 11, 2019

Marshall Islands-based 1pool Ltd. and its chief executive officer and owner, Patrick Brunner, will pay $990,000 to resolve a CFTC action alleging that they illegally offered retail commodity transactions that were margined in bitcoin, failed to register as a futures commission merchant (FCM), and failed to have required anti-money laundering procedures in place. The settlement payment consists of a $175,000 civil monetary penalty, disgorgement of $246,000 in gains, and restitution of approximately $570,000 to U.S. customers. CFTC

Tagged in: Cryptocurrency, Fraud in CFTC-Regulated Markets, Money Laundering, Regulatory Violations,

March 4, 2019

The CFTC announced an award of $2 million to an individual whistleblower under its Whistleblower Program. The CFTC revealed that the individual was not an insider, had provided expert analysis of market data, and received an award at least in part based on related actions brought by non-CFTC federal regulators. As is their usual practice, the CFTC did not release further details about the case. CFTC

Tagged in: Financial and Investment Fraud, Whistleblower Case, Whistleblower Rewards,

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