Blog Posts Tagged With CFTC

CFTC v. Lucrative Pips Corporation and Kevin Perry (N.D. Ga. Sept. 28, 2018, Contested)

Action against Defendants, a company and its founder and CEO, for alleged commodity fraud and misappropriation related to a scheme in certain off-exchange forex contracts.  According to the CFTC, Defendants falsely represented their trading strategy and returns while soliciting customers and lost or misappropriated the funds obtained from investors.

CFTC Press Release
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CFTC v. John Doe 1 a/k/a Morgan Hunt dba Diamonds Trading Investment House and John Doe 2 aka Kim Hecroft dba First Options Trading (N.D. Tex. Sept. 28, 2018, Contested)

Action against Defendants for alleged fraudulent scheme to solicit Bitcoin.  According to the CFTC, Defendants misappropriated customer funds after making false or misleading representations or omissions about their planned investment of funds in forex contracts, binary options, and diamonds. The CFTC further alleges that Defendants forged account statements and documents and impersonated a CFTC investigator.

CFTC Press Release
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CFTC v. TFS-ICAP, LLC, et al. (S.D.N.Y. Sept. 28, 2018, Contested)

Action against Defendants, an interdealer broker joint venture, its Global Head of Emerging Markets FX Options, and its CEO, in connection with alleged deception of clients through the use of fake bids, offers, and trades in the forex options market.  The CFTC alleges that senior managers encouraged or knowingly allowed the misconduct to continue and that Defendant CEO knew or had reason to know of the practices but failed to take steps to prevent them.
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In re Michael Leibowitz (A.P. Sept. 28, 2018, Settled)

Action against Respondent, Chairman of the Board of an interdealer foreign exchange options broker, for alleged failure to diligently supervise forex options trades by the emerging options desk.   According to the CFTC, brokers engaged in fake bids, offers, and trades to misrepresent the level of liquidity and encourage customers to trade.  The CFTC further alleges that senior managers had reason to know that this practice was ongoing and that Respondent failed to implement any policies
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CFTC v. EOX Holdings LLC and Andrew Gizienski (S.D.N.Y. Sept. 28, 2018, Contested)

Action against Defendants, an introducing broker and one of its associated persons, for alleged misuse of material nonpublic information related to their customers.  According to the CFTC, Defendant associated person provided a friend with confidential customer information and executed trades for his friend’s account while in possession of that information.  The CFTC also alleges that Defendant broker failed to maintain certain required records, diligently supervise its employees, and institute policies and procedures to monitor trading
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In re Davis Ramsey (A.P. Sept. 27, 2018, Settled)

Action against Respondent, a futures trader, for alleged scheme to influence the prices of futures contracts on two exchanges.  According to the CFTC, Respondent engaged in futures market transactions to improve binary contracts positions he held that were traded on Nadex.  Respondent has agreed to pay disgorgement of $250,636.25 and a civil penalty of $325,000.

CFTC Press Release 

CFTC Order
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CFTC v. 1pool Ltd. and Patrick Brunner (D.D.C. Sept. 27, 2018, Contested)

Action against Defendants, an online trading platform company and its CEO and owner, in connection with alleged illegal retail commodity transactions, failure to register as a Futures Commission Merchant, and failure to implement procedures to prevent money laundering.  According to the CFTC, Defendants failed to conduct certain transactions in compliance with the Commodity Exchange Act, and Defendant company, through Defendant CEO and others, acted as a Futures Commission Merchant by soliciting or taking orders for
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CFTC v. Timothy J. Atkinson, et al. (S.D.N.Y. Sept. 27, 2018, Contested); et al.

CFTC v. Timothy Joseph Atkinson, et al. (S.D.N.Y. Sept. 27, 2018, Contested); CFTC v. Ronald Montano, et al. (S.D.N.Y. Sept. 27, 2018, Contested); In re Grayson Brookshire (A.P. Sept. 27, 2018, Settled); In re Antonio Giacca (A.P. Sept. 27, 2018, Settled); In re Travis Stephenson (A.P. Sept. 27, 2018, Settled); In re Justin Blake Barrett (A.P. Sept. 27, 2018, Settled); In re Shmuel Pollen (A.P. Sept. 27, 2018, Settled); In re William Earl Berry and
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In re Peter Grady (A.P. Sept. 26, 2018, Settled); In re Adam Flavin (A.P. Sept. 26, 2018, Settled)

Actions against Respondents, two traders at a commodity merchandising firm, for alleged attempts to manipulate the price of wheat futures and options contracts.  According to the CFTC, Respondents and others attempted to manipulate the price of particular wheat futures and options contracts through the purchase and cancellation of wheat shipping certificates.  The first Respondent trader has agreed to pay a civil penalty of $125,000, and the second Respondent trader has agreed to pay a civil
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In re Kooima Kaemingk, et al. (A.P. Sept. 26, 2018, Settled)

Action against Respondents, a registered introducing broker, its Vice President and co-owner, and its President and co-owner, in connection with Respondent Vice President’s alleged fraud, unauthorized trading, and false and misleading statements to a financial market company; a former employee’s fraud, unauthorized trading, and violation of the financial market company’s position limits in certain futures contracts; and for Respondents’ supervision failures.  Respondents have agreed to pay, jointly and severally, restitution of $11,920,857.50 and a civil
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CFTC v. Yehuda L. Belsky and Y Trading, LLC (E.D.N.Y. Sept. 26, 2018, Contested)

Action against Defendants, a company and its sole owner, for alleged fraudulent solicitations, false statements to the CFTC about this trading, and failure to register with the CFTC as a Commodity Trading Advisor.  According to the CFTC, Defendant owner solicited funds from customers to trade binary options on their behalf by making false and misleading claims that he was an experienced and successful trader.  The CFTC also alleges that Defendant owner violated a 2008 CFTC
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In re Mizuho Bank, Ltd. (A.P. Sept. 21, 2018, Settled)

Action against Respondent, a Japanese corporation that engages in proprietary futures trading in the United States, for alleged spoofing.  The CFTC alleges that one of Respondent’s employees placed orders in Treasury and Eurodollar futures contracts intending to cancel them before execution.  Respondent has agreed to pay a civil penalty of $250,000 and post-judgment interest.

CFTC Press Release 

CFTC Order
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In re Geneva Trading USA, LLC (A.P. Sept. 20, 2018, Settled)

Action against Respondent, a proprietary trading firm, for alleged spoofing in markets for gold, heating oil, RBOB gasoline, platinum, crude oil, and various food products.  The CFTC alleges that three of Respondent’s employees regularly placed larger orders on one side of the market, intending to cancel those orders before execution of smaller orders also placed by Respondent.  Respondent has agreed to pay a civil penalty of $1.5 million and post-judgment interest.

CFTC Press Release   

CFTC
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In re Victory Asset, Inc. (A.P. Sept. 19, 2018, Settled); In re Michael D. Franko (A.P. Sept. 19, 2018, Settled)

Action against Respondents, a commodity pool operator and commodity trading advisor and one of its former directors, for alleged cross-market spoofing.  The CFTC alleges that Respondents’ practice was to repeatedly place bids or offers for futures contracts in copper and gold on COMEX and crude oil  on NYMEX with the intent to cancel larger orders before execution of smaller orders.  The Corporate Respondent has agreed to pay a civil penalty of $1.8 million and post-judgment
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CFTC v. Royal Metals Group, LLC and Chelsea Gless (S.D.N.Y., Sept. 14, 2018, Contested)

Action against Defendants, a purported precious metals dealer and its owner, for allegedly defrauding retail clients.  The CFTC alleges that Defendants obtained funds from customers by falsely representing that they would deliver precious metals to them and obtained precious metals from other customers by falsely representing that they would pay for them.

CFTC Press Release
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In re ABN AMRO Clearing Chicago, LLC (A.P. Sept. 14, 2018, Settled)

Action against Respondent, a registered Futures Commission Merchant, for alleged books and records violations.  The CFTC alleges that Respondent failed to maintain adequate audit trail data on derivatives trading for 65 of its clients over a 19-month period.  Respondent has agreed to pay a civil penalty of $160,000.

CFTC Press Release 

CFTC Order
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In re Global Asset Advisors LLC d/b/a Daniels Trading and Glenn A. Swanson (A.P. Sept. 14, 2018, Settled)

Action against Respondents, an introducing broker and its registered associated person, for alleged failure to supervise the handling of customer accounts and for records violations.  According to the CFTC, Respondents failed to supervise and inquire into orders placed through a client’s account that were in furtherance of a post-execution allocation scheme.  Respondents have agreed to pay, jointly and severally, a civil penalty of $300,000 and post-judgment interest.

CFTC Press Release

CFTC Order
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In re Hooley Solutions LLC and Steven Bradley Hooley (A.P. Sept. 14, 2018, Settled)

Action against Respondents, an unregistered commodity trading advisor and an associated person, for allegedly operating an unregistered commodities trading advisory business with discretionary trading authority over customers’ forex accounts.  Respondents have agreed to pay, jointly and severally, a civil penalty of $75,000.

CFTC Order 

CFTC Press Release
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