Blog Posts Tagged With CFTC

CFTC v. X-Change Financial Access LLC (C.D. Cal. May 29, 2018, Settled)

Action against Defendant, a commodity pool operator, for alleged failure to supervise its employees’ handling of customer accounts and failure to preserve complete records.  According to the CFTC, Defendant failed to maintain written policies or procedures concerning the post-execution allocation of bunched orders and did not train its staff regarding their obligations related to the handling of bunched orders.  The CFTC further alleges that Defendant’s policies and procedures regarding compliance with regulatory actions were insufficient ... Continue Reading

CFTC v. Jin Choi, et al. (C.D. Cal. May 24, 2018, Contested)

Action against Defendant, an unregistered commodity trading advisor, for allegedly making material misstatements regarding his experience, registration status, and use of client funds and for failing to register.  According to the CFTC, Defendant falsely stated that he had trading experience and was registered as an adviser during solicitations to FOREX investors and misappropriated investor funds for personal expenses.

CFTC Press Release ... Continue Reading

CFTC v. Glencore Agriculture B.V., et al. (A.P. Apr. 30, 2018, Settled)

Action against Respondents, two companies that originate agriculture commodities, for allegedly holding net positions in the ICE Futures Cotton No. 2 contracts that, in aggregate, exceeded the CFTC’s speculative position limits.  The CFTC further alleges that Respondents executed exchange of futures for physical transactions opposite each other’s cotton futures trading accounts, even though their accounts were not independently controlled.  Finally, the CFTC alleges that one Defendant submitted a Form 304 that failed to represent all ... Continue Reading

CFTC v. Charles H. McAllister (W.D. Tex. Apr. 26, 2018, Contested)

Action against Defendant for alleged fraud and misappropriation in connection with contracts of sale of precious metals through his company.  According to the CFTC, Defendant and his company fraudulently solicited customers to send money to his company for the purchase of precious metals, but failed to procure all the metal promised, instead misappropriating funds to cover business expenses, invest in other businesses, and make Ponzi-like payments to earlier customers.  The CFTC further alleges that Defendant ... Continue Reading

CFTC v. Michael J. Salerno, et al. (E.D. Pa. Apr. 25, 2018, Contested)

Action against Defendants, an individual and his companies, in connection with an alleged fraudulent hiring process, fraudulent misrepresentations, and misuse of trader funds.  According to the CFTC, Defendants fraudulently solicited individuals to become forex traders by making false statements on online employment-related websites that Defendants required traders to pay a “risk deposit” and that Defendants would match the deposits with company funds in proprietary trading accounts and share a portion of the profits from trading ... Continue Reading

CFTC v. Blake Harrison Kantor aka Bill Gordon, et al. (E.D.N.Y. Apr. 17, 2018, Contested)

Action against Defendants, two individuals and four entities, in connection with alleged unregistered binary options transactions.  According to the CFTC, Defendants solicited potential customers by falsely claiming that customers’ accounts would yield profits based on purported past profitable trading by one of the Defendants.  The CFTC further alleges that Defendants misappropriated customer funds for their personal use and sought to conceal their misappropriation by inviting customers to transfer their binary options account balances into a ... Continue Reading

CFTC v. R2 Capital Group, LLC, et al. (A.P. Apr. 11, 2018, Contested)

Action against Defendants, an individual and his holding company, for alleged fraudulent solicitation from several pool participants for an investment pool operated by Defendants.  According to the CFTC, Defendants misappropriated pool funds by diverting sums from holding company and pool bank accounts to themselves and their holding companies, and using funds for personal expenses.  In a default judgment, the court ordered Defendants to pay, jointly and severally, $1,381,454.43 in restitution and a civil penalty in ... Continue Reading

CFTC v. The Kane Capital Investment Group, LLC, & Amrit Jaswant Singh Chahal (E.D. Va. Apr. 11, 2018, Contested)

Action against Defendants, a commodity investment company and its principal, for allegedly making misleading statements to investors and misappropriating investor funds.  According to the CFTC, Defendants made erroneous statements to potential investors regarding their profitability and used investor funds to pay for personal expenses.

CFTC Press Release ... Continue Reading

CFTC v. Algointeractive, Inc., et al. (S.D.N.Y. Apr. 11, 2018, Contested)

Action against Defendants, a commodity investment company and its two principals, for allegedly making misleading statements to potential investors in pooled investment vehicles for futures trading.  According to the CFTC, Defendants misappropriated participants’ funds, issued false statements to conceal losses, and failed to register with the CFTC.  A related criminal action has been filed.

CFTC Press Release ... Continue Reading

CFTC v. Anuj C. Singhal (Apr. 9, 2018, Settled)

Action against Respondent, a registered floor broker, for alleged spoofing in the agricultural commodity futures market.  According to the CFTC, Respondent’s practice was to enter larger limit orders on one side of the CME wheat futures market, sometimes with several larger orders in succession, and then enter a smaller market order on the opposite side of the market.  Respondent has agreed to pay a civil penalty in the amount of $150,000.

CFTC Order

CFTC Press ... Continue Reading

CFTC v. Ron Olen Friedrichsen (S.D.N.Y. Mar. 2, 2018, Contested)

Action against Defendant, a purported commodity trading advisor, for allegedly soliciting clients under false names and without properly registering with the CFTC. The CFTC alleges that Defendant solicited clients via Craigslist ads, telephone, and email, while making false and misleading statements concerning his trading successes and guaranteed profits.

CFTC Press Release ... Continue Reading

In re AMP Global Clearing LLC (A.P. Feb. 12, 2018, Settled)

Action against Respondent, a registered Futures Commission Merchant, for alleged failure to supervise the implementation of critical provisions of its information systems security program. According to the CFTC, this failure left customer records and information vulnerable and allowed third party access to files including customer personally identifiable information. Respondent has agreed to pay a civil penalty of $100,000, and to an undertaking requiring follow-up reports related to its cybersecurity efforts.

CFTC Press Release

CFTC Order ... Continue Reading

SEC and CFTC Chairs Testify on Virtual Currency Oversight (Feb. 6, 2018)

SEC Chairman Jay Clayton and CFTC Chairman Christopher Giancarlo testified before the Senate Banking, Housing and Urban Affairs Committee on regulatory and enforcement efforts in connection with Bitcoin and other virtual currencies.  Both officials suggested that a broader, coordinated effort to monitor and regulate these currencies was necessary.  Chairman Giancarlo stated:  “It strikes me that we owe it to this new generation to respect their enthusiasm about virtual currencies with a thoughtful and balanced response, ... Continue Reading

In re Deutsche Bank Securities, Inc. (A.P. Feb. 1, 2018, Settled)

Action against Respondent for an alleged attempt to manipulate the U.S. Dollar International Swaps and Derivatives Association Fix benchmark (ISDAFIX).  The CFTC alleges that Respondent’s traders attempted to manipulate the benchmark by strategically bidding, offering, and executing transactions in targeted interest rate products at or near the rate fixing time.  The CFTC further alleges that Respondent’s traders attempted to manipulate the final published rate by submitting false rates.  Respondent has agreed to pay a civil ... Continue Reading

In re Deutsche Bank AG, et al. (A.P. Jan. 29, 2018, Settled)

Action against Respondent for allegedly attempting to manipulate the price of precious metals futures contracts using manual spoofing techniques and trading for the purpose of triggering customer stop-loss orders. The CFTC alleges that traders on Defendant’s precious metals desk, acting in a coordinated manner, placed spoof orders and exchanged messages soliciting others to engage in spoofing and regarding their successes in manipulating the markets. The CFTC further alleges that Defendant failed to adequately supervise its ... Continue Reading

In re UBS AG (A.P. Jan. 29, 2018, Settled)

Action against Respondent for allegedly attempting to manipulate the price of precious metals futures contracts using several manual spoofing techniques and trading for the purpose of triggering customer stop-loss orders. Respondent self-reported the issue following an internal investigation and has agreed to pay a $15 million civil penalty and an undertaking to maintain adequate spoofing surveillance and training programs.

 CFTC Press Release ... Continue Reading

CFTC v. Southern Trust Metals, Inc., et al. (11th Cir. Jan. 22, 2018)

The Eleventh Circuit held as a matter of first impression that a settlement between a self-regulatory organization (the National Futures Association or NFA) and Defendants did not preclude a subsequent CFTC action brought on the basis of the same action. The court found that equitable estoppel does not apply to a CFTC action where the Defendant entered into a settlement with a self-regulatory organization because (1) the settlement was with a private, nongovernmental organization, (2) ... Continue Reading

CFTC v. Patrick K. McDonnell, et al. (E.D.N.Y. Jan. 19, 2018, Contested)

Action against Defendants, a corporation and its principal, for an alleged scheme to solicit money and digital currencies in exchange for advice regarding trading virtual currencies and for the purpose of virtual currency purchasing and trading.  The CFTC alleges that Defendants made these solicitations over the Internet and then shut down their web site and misappropriated investor funds once they had been received.

CFTC Press Release ... Continue Reading

CFTC v. Dillon Michael Dean, et al. (E.D.N.Y. Jan. 19, 2018, Contested)

Action against Defendants, a corporation and its principal, for allegedly soliciting at least $1.1 million worth of Bitcoin to participate in a pooled investment vehicle for trading commodity interests.  The CFTC alleges that, instead of using investor funds to purchase binary options contracts as promised, Defendants diverted the funds to pay other customers and personal expenses.  According to the CFTC, Defendants also made inaccurate reports of returns to customers and later attempted to conceal losses ... Continue Reading

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