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CFTC Enforcement Actions

					
The Commodity Futures Trading Commission (CFTC) is the United States agency with primary responsibility for enforcing the Commodity Exchange Act (CEA) and regulating commodity futures and related markets. Whistleblowers with knowledge of violations of laws and regulations enforced by the CFTC can submit a claim under the CFTC Whistleblower Reward Program, and may be eligible to receive a monetary reward and protection against retaliation by employers.


Below are summaries of recent CFTC settlements or successful enforcement actions. If you believe you have information about fraud which could give rise to a CFTC enforcement action and claim under the CFTC Whistleblower Reward Program, please contact us to speak with one of our experienced whistleblower attorneys.

				

			

			
						
					
			

	
		
		

			

				
				
September 29, 2022

				 CX Futures Exchange, L.P. has been ordered to pay $6.5 million and comply with certain conditions to settle charges of violating the Commodity Exchange Act and CFTC regulations.  The charges involved failing to comply with certain system safeguard regulations, failing to report certain data for over 200,000 options transactions, and falsely representing to CFTC staff that it was properly reporting such data.  CFTC				 					 

						
Tagged in:
													  Fraud in CFTC-Regulated Markets, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 27, 2022

				 Eleven financial institutions—including Bank of America, Barclays, Cantor Fitzgerald, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, Jefferies, Morgan Stanley, Nomura, and UBS—have been ordered to pay over $710 million total for violating CFTC recordkeeping and supervision requirements.  Each institution was found to have failed to prevent their employees from communicating both internally and externally about firm business using informal means, such as texts, Whatsapp, and Signal, and failed to preserve those communications.  The individual payments ranged from $100 million (Bank of America) to $6 million (Cantor Fitzgerald), with the majority of institutions ordered to pay $75 million.  CFTC				 					 

						
Tagged in:
													  Financial Institution Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 16, 2022

				 William Thomas Caniff and his company, Berkley Capital Management, LLC have been ordered to pay $2.6 million in restitution and a $3.6 million civil monetary penalty after they were found to have misappropriated participant funds from two foreign exchange binary options trading pools.  Caniff directed about $1.2 million to himself and directed about $1.1 million to his partner, Arie Bos.  Bos then concealed the misappropriation by reporting false profits to pool participants.  CFTC				 					 

						
Tagged in:
													  Fraud in CFTC-Regulated Markets, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
September 2, 2022

				 Swapnil Rege, SwapStar Capital LLC, and Reema Rege have been ordered to pay $5 million in disgorgement and pre-judgment interest for engaging in fraudulent solicitation and misappropriation, including on Swapnil’s part, engaging in trading despite an existing bar for prior violations, and on Reema’s part, receiving illegally-obtained profits she was not entitled to.  The orders resulted from parallel but separate enforcement actions by the CFTC and SEC, and included a permanent trading and registration ban against Swapnil.  CFTC; SEC				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
													  Fraud in CFTC-Regulated Markets, 
													  Regulatory Violations, 
													  Securities Fraud, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
July 15, 2022

				 A number of California- and Colorado-based people and their affiliated entities have been ordered to pay over $29 million in total in order to resolve multiple charges of violating CFTC regulations.  A federal judge had found California-based John D. Black, his associates Christopher Mancuso and Joseph Tufo, and his entities Financial Tree, Financial Solution Group, and New Money Advisors—as well as Colorado-based John P. Glenn and his law firm—liable for solicitation fraud in connection with binary options and forex transactions, registration violations, and other charges.  CFTC				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
													  Fraud in CFTC-Regulated Markets, 
													  Regulatory Violations, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
July 5, 2022

				 BNP Paribas has been ordered to pay a $6 million civil monetary penalty for its failure to correctly swap transactions as required by the Commodity Exchange Act and CFTC regulations.  According to the CFTC, BNPP failed to make more than 300,000 reports involving more than 6,000 swap transactions by U.S. persons incorrectly classified as non-U.S. persons.  Additionally, BNPP incorrectly reported thousands of bunched trades as new trades, and incorrectly reported approximately 3,000 commodity swaps as equity trades.  CFTC				 					 

						
Tagged in:
													  Financial Institution Fraud, 
													  Fraud in CFTC-Regulated Markets, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 30, 2022

				 Interactive Brokers LLC has been ordered to pay over $1 million in disgorgement and civil monetary penalty for its failure to supervise employees’ handling of exchange fees charged to customers.  By failing to ensure that its employees accurately assessed fees, Interactive Brokers overcharged its customers over $710,000.  CFTC				 					 

						
Tagged in:
													  Financial and Investment Fraud, 
													  Fraud in CFTC-Regulated Markets, 
													  Regulatory Violations, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
June 24, 2022

				 Starberry Limited will pay over $1.3 million in a civil monetary penalty for acting as an unregistered futures commission merchant and will disgorge the same amount in unlawfully-earned commission and fees. Starberry accepted more than $400 million from a foreign customer, invested it in crude oil futures contracts through more than 12,500 NYMEX WTI trades, and earned over $86 million in profits for the investor. CFTC				 					 

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

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
May 24, 2022

				 Switzerland-based mining and commodity trading firm Glencore International A.G. and an affiliate have agreed to pay over $1.1 billion in criminal penalties and forfeitures, and will plead guilty to violations of the Foreign Corrupt Practices Act and conspiracy to engage in commodity price manipulation.  In addition, the companies will pay over $1.186 billion in civil penalties and disgorgement in settlement with the CFTC.  As part of the criminal plea agreement, Glencore admitted that between 2007 and 2018, it corruptly provided more than $100 million in payments and other things of value to intermediaries for the payment of bribes to officials in Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, Brazil, Venezuela, and the Democratic Republic of the Congo.  With respect to the commodity price manipulation scheme, the CFTC found that from as early as 2007 through at least 2018, Glencore sought to increase profits from its physical and derivatives oil products trading by manipulating or attempting to manipulate four U.S. based S&P Global Platts physical oil benchmarks and related futures and swaps.  Criminal fines and forfeitures total over $700 million for the FCPA violations and nearly $486 million for the for the market manipulation violations, which amounts are subject to credits for amounts paid to the CFTC and foreign authorities including the United Kingdom.  The $1.186 billion CFTC resolution will also be reduced, with Glencore receiving credit for payments in the criminal resolutions.  DOJ; USAO SDNY; CFTC				 					 

						
Tagged in:
													  Criminal Proceedings, 
													  FCPA, 
													  Financial and Investment Fraud, 
													  Fraud in CFTC-Regulated Markets, 
													  Market Manipulation and Trading Violations, 
												
						

					
	
							
	
		
		
	


 			




	
		
		

			

				
				
May 13, 2022

				 Kraft Foods Group, Inc. and Mondelez Global LLC have been ordered to pay $16 million after being found to manipulate the prices of cash wheat and wheat futures, and holding wheat futures positions in excess of speculative position limits established by the CFTC.  The companies allegedly engaged in the scheme in order to lower cash wheat prices after they rose in the summer of 2011.  The misconduct earned the two companies over $5.4 million in profits.  CFTC				 					 

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

					
	
							
	
		
		
	


 			


											

						

								

									
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