Blog Posts Tagged With Cases of Interest

In re Hard Eight Futures, LLC (A.P. Sept. 30, 2019, Settled); In re Igor Chernomzav (Sept. 30, 2019, Settled)

Actions against Respondents, a trading firm and its principal, for alleged spoofing.  According to the CFTC, Respondents placed orders for E-mini futures contracts with the intent to cancel them before execution to manipulate prices.  Respondent trading firm has agreed to pay a civil penalty of $1,750,000.  Respondent principal has agreed to pay a civil penalty of $750,000 and to a nine-month trading bar.

CFTC Press Release

CFTC Order (Hard Eight)

CFTC Order (Chernomzav)
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In re Block.one (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a blockchain company, for an alleged unregistered offering.  The SEC alleges that Respondent sold electronic tokens through an initial coin offering without registering or securing an exemption from registration.  Respondent has agreed to pay a civil penalty of $24,000,000.

SEC Order
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In re Barclays PLC (A.P., Sept. 27, 2019, Settled)

Action against Respondent, a bank holding company, for alleged violations of the books and records and internal controls provisions of the FCPA.  The SEC alleges that Respondent hired relatives and close friends of government officials throughout Asia to acquire business and failed to devise and maintain sufficient controls with respect to its hiring practices.  Respondent has agreed to pay disgorgement of $3,824,686, prejudgment interest of $984,040, and a civil penalty of $1,500,000.

SEC Order

SEC
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In re Herbalife Nutrition Ltd. (A.P., Sept. 27, 2019, Settled)

Action against Respondent, a multi-level marketing firm, for alleged misleading disclosures.  According to the SEC, Respondent mischaracterized its China business model as direct sales, when in fact it resembled multi-level marketing, the latter of which is impermissible in China.  Respondent has agreed to pay a civil penalty of $20,000,000.

SEC Order

SEC Press Release
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In re Westport Fuel Systems, Inc. and Nancy Gougarty (A.P., Sept. 27, 2019, Settled)

Action against Respondents, a publicly traded clean fuel systems company and its former chief executive, for alleged violations of the anti-bribery, books and records, and internal controls provisions of the FCPA.  The SEC alleges that Respondents orchestrated a stock transfer to a Chinese official in an effort to increase the dividend of a Chinese joint venture in which the corporate Respondent held shares.  Respondent company agreed to pay disgorgement of $2,350,000, prejudgment interest of $196,000,
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In re Quad/Graphics, Inc. (A.P., Sept. 23, 2019, Settled)

Action against Respondent, a marketing and printing services company, for alleged violations of the anti-bribery, books and records, and internal controls provisions of the FCPA.  The SEC alleges that Respondent’s subsidiaries in Peru and China made improper payments to government officials to win contracts.  Respondent has agreed to pay disgorgement of $6,936,174, prejudgment interest of $959,160, and a civil penalty of $2,000,000.

SEC Order

SEC Press Release
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SEC v. Carlos Ghosn and Gregory Kelly (S.D.N.Y., Sept. 23, 2019, Settled); In re Nissan Motor Co., Ltd. (A.P. Sept. 23, 2019, Settled)

Action against Respondent, a car company, and Defendants, two of the company’s former executives and board members, for alleged fraud relating to executive compensation.  According to the SEC, Defendants and Respondent publicly reported lower executive compensation levels than were actually paid. One Defendant has agreed to a $1,000,000 civil penalty, 10-year officer and director bar, and five-year bar against appearing as an attorney before the SEC.  The other Defendant has agreed to a $100,000 civil
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In re TechnipFMC Plc. (A.P., Sept. 23, 2019, Settled)

Action against Respondent, an oil services company, for alleged violations of the anti-bribery, books and records, and internal controls provisions of the FCPA.  The SEC alleges that Respondent used a third-party intermediary to make improper payments to Iraqi officials.  Respondent has agreed to pay disgorgement of $4,327,194 and prejudgment interest of $734,194.

SEC Order

SEC Administrative Summary
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In re John Lawrence (A.P. Sept. 16, 2019, Settled); In re Heraeus Metals New York LLC (A.P. Sept. 16, 2019, Settled)

Actions against Respondents, a commodities trader and his employer, for alleged spoofing. According to the CFTC, Respondent placed orders for precious metals futures contracts with the intent to cancel them before execution to manipulate prices and encourage execution of orders Respondent wanted filled. Respondent trader has agreed to a four-month trading bar and to pay a $130,000 civil monetary penalty, and Respondent employer has agreed to pay a $900,000 civil monetary penalty.

CFTC Order (Trader)
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In re Christian Trunz (A.P. Sept. 16, 2019, Settled)

Action against Respondent, a precious metals trader, for alleged spoofing. According to the CFTC, Respondent placed orders for precious metals futures contracts with the intent to cancel them before execution to manipulate prices.  The CFTC has reserved decision on sanctions against Respondent pending fulfillment of his cooperation agreement with the CFTC. Respondent previously pleaded guilty in a parallel criminal action in the Eastern District of New York.

CFTC Order

CFTC Press Release
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In re Christian Trunz (A.P. Sept. 16, 2019, Settled)

Action against Respondent, a precious metals trader, for alleged spoofing.  According to the CFTC, Respondent placed orders for precious metals futures contracts with the intent to cancel them before execution to manipulate prices.  The CFTC has reserved decision on sanctions against Respondent pending fulfillment of his cooperation agreement with the CFTC. Respondent previously pleaded guilty in a parallel criminal action in the Eastern District of New York.

CFTC Order 

CFTC Press Release
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CFTC v. Michael Nowak and Gregg Smith (N.D. Ill. Sept. 16, 2019, Contested)

Action against Defendants, two traders at a bank, for alleged spoofing.  According to the CFTC, Defendants placed orders for precious metals futures contracts with the intent to cancel them before execution to manipulate prices and encourage execution of orders Defendants wanted filled.  A parallel criminal action has been brought against Defendants in the Northern District of Illinois.

CFTC Complaint 

CFTC Press Release
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CFTC v. Michael Nowak and Gregg Smith (N.D. Ill. Sept. 16, 2019, Contested)

Action against Defendants, two traders at a bank, for alleged spoofing. According to the CFTC, Defendants placed orders for precious metals futures contracts with the intent to cancel them before execution to manipulate prices and encourage execution of orders Defendants wanted filled.  A parallel criminal action has been brought against Defendants in the Northern District of Illinois.

CFTC Complaint

CFTC Press Release
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In re John Lawrence (A.P. Sept. 16, 2019, Settled); In re Heraeus Metals New York LLC (A.P. Sept. 16, 2019, Settled)

Actions against Respondents, a commodities trader and his employer, for alleged spoofing. According to the CFTC, Respondent placed orders for precious metals futures contracts with the intent to cancel them before execution to manipulate prices and encourage execution of orders Respondent wanted filled. Respondent trader has agreed to a four-month trading bar and to pay a $130,000 civil monetary penalty, and Respondent employer has agreed to pay a $900,000 civil monetary penalty.

CFTC Order Trader
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In re Deutsche Bank AG (A.P. Aug. 22, 2019, Settled)

Action against Respondent, a financial services corporation, for alleged violations of the books and records and internal accounting controls provisions of the FCPA.  According to the SEC, Respondent provided employment to the relatives of foreign government officials to influence them to assist the bank in obtaining or retaining business or other benefits.  The SEC further alleges that Respondent did not enforce a hiring policy enacted to prevent such conduct, that its books and records did
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In re Walmart Inc. (A.P. June 20, 2019, Settled)

Action against Respondent, a retailer, for alleged violations of the FCPA’s books and records and internal accounting controls provisions.  According to the SEC, Respondent’s subsidiaries in Brazil, China, India, and Mexico lacked sufficient internal anticorruption controls and, as a result, employed third-party intermediaries who made improper payments to foreign government officials.  The SEC further alleges that Respondent failed to adequately investigate allegations of corruption and mitigate known risks.  Respondent has agreed to pay disgorgement of
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In re Wedbush Securities, Inc. (A.P. June 18, 2018, Settled)

Action against Respondent, a registered broker-dealer, in connection with an industry-wide sweep into practices related to the pre-release of American Depositary Receipts (ADRs).  According to the SEC, Respondent obtained pre-released ADRs from depositary banks pursuant to an agreement which required the broker receiving the pre-released ADRs to represent, among other things, that it beneficially owned the ordinary shares (or an equivalent security) represented by the ADRs.  The SEC alleges that Respondent’s brokers and customers did
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In re KPMG LLP (A.P. June 17, 2019, Settled)

Action against Respondent, an auditing firm, for alleged audit integrity violations.  According to the SEC, Respondent obtained confidential information related to upcoming PCAOB inspections and used that information to revise previously issued audit reports.  The SEC also alleges that audit professionals employed by Respondent cheated on the firm’s training exams.  Respondent has agreed to pay a civil penalty of $50 million.

SEC Order

SEC Press Release
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CFTC v. Control-Finance Limited and Benjamin Reynolds (S.D.N.Y. June 17, 2019, Contested)

Action against Defendants, a U.K-based Bitcoin trading and investment company and its principal, for an alleged $147 million Ponzi and pyramid scheme.  According to the CFTC, Defendants made false guarantees of daily trading profits and other misrepresentations to induce investors to purchase Bitcoin and transfer the Bitcoin to Defendants.  The CFTC alleges that Defendants made no trades on investors’ behalf and instead misappropriated investor funds to, for example, make Ponzi-like payments to earlier investors.  The
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In re Industrial and Commercial Bank of China Financial Services LLC (A.P. June 14, 2019, Settled)

Action against Respondent, a registered broker-dealer, in connection with an industry-wide sweep into practices related to the pre-release of American Depositary Receipts (ADRs).  According to the SEC, Respondent obtained pre-released ADRs from depositary banks pursuant to an agreement which required the broker receiving the pre-released ADRs to represent, among other things, that it beneficially owned the ordinary shares (or an equivalent security) represented by the ADRs.  The SEC alleges that Respondent’s brokers and customers did
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SEC v. Mark “Christian” Ramsey (E.D. Pa. May 21, 2019, Contested)

Action against Defendant, the friend and business partner of a former football player charged with insider trading, for alleged participation in the same insider trading scheme.  According to the SEC, Defendant received tips from a former investment banker, also previously charged by the SEC, for information related to upcoming corporate acquisitions and traded on the former football player’s behalf while in possession of that information.  Defendant has also been charged in a parallel criminal action.
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SEC v. Ivan Acevedo and Dane R. Roseman (S.D. Fla. Apr. 12, 2019, Contested)

Action against Defendants, two former directors of investment at the Woodbridge Group of Companies LLC, for alleged fraud.  According to the SEC, Defendants, who were not registered with the SEC, fraudulently marketed securities in a $1.2 billion Ponzi scheme and misappropriated investor funds.  In January 2019, the Southern District of Florida ordered Woodbridge Group of Companies LLC and its owner to pay disgorgement of $892 million, among other remedies.  Defendant directors have been charged in
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