CFTC Enforcement

December 22, 2014

The U.S. District Court for the Northern District of Texas issued a supplemental Consent Order of Permanent Injunction requiring Steven Lyn Scott of Dallas, Texas, to pay a $700,000 civil monetary penalty and restitution of $766,625.30, plus post-judgment interest. An earlier Consent Order of the Court, entered on May 5, 2014, imposed a permanent trading and registration ban against Scott and prohibits him from violating provisions of the Commodity Exchange Act and CFTC regulations. CFTC

December 22, 2014

The CFTC ordered Deutsche Bank Securities Inc. to pay a $3 million penalty on charges of failing to properly invest customer segregated funds, failing to prepare and file accurate financial reports, failing to maintain required books and records, and for related supervisory failures. CFTC

December 18, 2014

A federal district court for the Southern District of New York has ordered Royal Bank of Canada to pay civil monetary penalties of $35 million for engaging in more than 1,000 illegal wash sales, fictitious sales, and noncompetitive transactions over a three-year period.  CFTC

December 18, 2014

The CFTC has obtained a court order requiring AlphaMetrix, LLC, a Chicago-based Commodity Pool Operator and Commodity Trading Advisor, and its parent company AlphaMetrix Group, LLC to pay a combined $8.4 million in penalties, restitution, and disgorgement.  CFTC

December 16, 2014

A federal court has ordered Missouri resident Daniel Steele and his company, Champion Management International LLC, to pay over $2.5 million in sanctions.  CFTC

December 10, 2014

The CFTC has settled charges against IBFX, Inc. f/k/a Tradestation Forex, Inc., a Florida-based Retail Foreign Exchange Dealer, for violating CFTC Regulations by failing to meet the minimum net capital requirements on three separate occasions, failing to timely report one of the minimum net capital deficits, and failing to supervise its employees and agents diligently by establishing, implementing, and executing an adequate supervisory structure and compliance programs.  CFTC

December 5, 2014

The U.S. District Court for the Southern District of Florida has entered an order of default judgment against defendants Gold Distributors, Inc. of Hallandale Beach, Florida, and its sole owner Jordan Cain of Miami, Florida.  The order requires the defendants to pay restitution in the amount of $337,266 and a civil monetary penalty of $1,011,800, as well as imposing permanent trading, solicitation, and registration bans against the defendants.  CFTC

December 4, 2014

Paul Greenwood of North Salem, New York, who operated a $1.3 billion investment scam where he and a co-Defendant misappropriated at least $554 million from commodity pool participants, was sentenced to 10 years in federal prison for charges related to his participation in the scam. Earlier, on July 28, 2010, Greenwood pled guilty to a six-count criminal indictment on the charges, including a commodities fraud charge in violation of the Commodity Exchange Act (CEA).  CFTC

December 3, 2014

The CFTC ordered Christopher A. Engel and Pinnacle Forex Group LLC, both of Glen Rock, Pennsylvania, jointly to pay a $414,000 civil monetary penalty and restitution totaling $405,378 to defrauded customers for committing fraud and misappropriation in connection with operating a commodity pool that traded leveraged or margined off-exchange foreign currency contracts.  CFTC

November 26, 2014

The CFTC has ordered Dominick Anthony Cognata, who was a registered COMEX floor broker, to pay a $140,000 civil monetary penalty for failing to comply with a CFTC subpoena and to cease and desist from further violations of CFTC recordkeeping requirements.  CFTC