Blog Posts Tagged With CFTC

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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CFTC v. Jon Barry Thompson (S.D.N.Y. Sept. 30, 2019, Contested)

Action against Defendant, the principal of a Bitcoin escrow company, for alleged fraud. According to the CFTC, Defendant induced customers to send him funds for the purchase of Bitcoin based on false representations that he already had the Bitcoin in hand.  The CFTC further alleges that Defendant misappropriated the customers’ funds and failed to deliver the promised Bitcoin.

CFTC Press Release

CFTC Complaint
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In re Coby Tresner (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a commodities floor broker, for alleged unauthorized trading and misappropriation.  According to the CFTC, Respondent falsely represented to clients that he was a registered commodity trading adviser and associated person of a registered introducing broker.  The CFTC further alleges that Respondent misappropriated client funds to pay personal expenses.  Respondent has agreed to pay a civil penalty of $250,000, restitution of $55,000, and post-judgment interest, and to permanent trading and registration bars.

CFTC
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In re Intergrain (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a Luxembourg-based agribusiness, for alleged failure to comply with Regulation 19.01, which requires disclosure when a legal person holds certain agricultural futures in a hedging position.  According to the CFTC, Respondents held or controlled soybean futures that were hedging positions but failed to file the necessary disclosure forms.  Respondent has agreed to pay a civil penalty of $175,000.

CFTC Order

CFTC Press Release
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In re Liora Welles (A.P. Sept. 30, 2019, Settled); In re Yair Hadar (A.P. Sept. 30, 2019, Settled); In re Shira Uzan (A.P. Sept. 30, 2019, Settled)

Actions against Respondents, three retention agents for an Israel-based binary-options firm, for allegedly soliciting customers to enter into illegal and off-exchange binary option transactions.  According to the CFTC, Respondents misrepresented the nature of the binary option trades they offered and falsely stated that most customers’ trades were profitable when in fact most customers lost money.  Respondents have entered into cooperation agreements with the CFTC and have agreed to permanent trading and registration bars.  Respondents have
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In re Rafael Novales (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a registered introducing broker, for alleged false statements to a regulator. According to the CFTC, Respondent submitted to an interview in connection with a CFTC investigation, during which he falsely stated that he always spoke with customers and obtained their authorization before executing orders on their behalf.  Respondent has agreed to pay a $50,000 civil monetary penalty and to a five-year registration bar.

CFTC Order

CFTC Press Release
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CFTC v. Tate Street Trading, Inc., and Leonard J. Cipolla (E.D. Va. Sept. 19, 2019, Contested)

Action against Defendants, a commodity-trading corporation and its owner, for misappropriation and fraud.  According to the CFTC, Defendants solicited funds for a futures and options trading pool and used the proceeds to make Ponzi-like payments to earlier investors and to pay personal expenses.

CFTC Complaint

CFTC Press Release
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CFTC v. Jared J. Davis (N.D. Ohio Sept. 17, 2019, Contested)

Action against Defendant, owner of a binary options trading company, for alleged fraud. According to the CFTC, Defendant solicited customers for trades in binary options on commodities and foreign currencies while trading against customer positions and utilizing the trading platform to favor his trades over those of his customers.

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 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 Tullett Prebon Americas Corp. (A.P. Sept. 13, 2019, Settled)

Actions against Respondent, an interdealer broker and registered introducing broker, for alleged failure to oversee employees and false statements. According to the CFTC, Respondent failed to supervise brokers and implement a policy that prohibited brokers from making false or misleading statements to customers about executed trades, bids, and offers. The CFTC further alleges that Respondent’s agent made false statements or omitted material information about the subject of a CFTC investigation during an investigative interview conducted
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In re Phillip Capital Inc. (A.P. Sept. 12, 2019, Settled)

Action against Respondent, a registered futures commission merchant and broker dealer, for alleged cybersecurity violations. According to the CFTC, Respondent experienced a cybersecurity breach, failed to maintain adequate cybersecurity policies and procedures, and failed to timely notify customers of the breach. Respondent has agreed to pay a civil penalty of $500,000 and received credit for payment of $1 million in reimbursement to customer accounts.

CFTC Order

CFTC Press Release
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In re Rafael Marconato (A.P. Sept. 12, 2019, Settled)

Action against Respondent, a registered compliance officer of a trading firm, for alleged fraud.  According to the CFTC, Respondent misrepresented fund performance to solicit participants in a commodity futures contract trading pool while misappropriating funds for personal use. The CFTC further alleges that Respondent falsely claimed to the National Futures Association that the firm had no customers and was investing in software rather than commodity interests.  Respondent has agreed to pay restitution of $125,000 and
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CFTC v. FuturesFX and Simon Jousef (S.D.N.Y. Sept. 10, 2019, Contested)

Action against Defendants, a Canadian trading systems company and its principal, for alleged fraud.  According to the CFTC, Defendants falsely marketed access to a trading room and support services by claiming that their trading room showed live and profitable trades when the trades were actually hypothetical.  The CFTC further alleges that Defendant principal claimed to the National Futures Association that the company was registered with the CFTC after it had dissolved.

CFTC Complaint

CFTC Press
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In re Merrill Lynch, Pierce, Fenner & Smith, Inc. (A.P. Sept. 10, 2019, Settled)

Action against Defendant, a registered futures commission merchant, for alleged failure to meet their recordkeeping obligations. According to the CFTC, Defendant failed to provide requested audit trail data because it did not maintain adequate internal controls for gathering responses to CFTC requests, by, for instance, maintaining a process to locate data in response to regulatory requests.  Defendant has agreed to pay a civil monetary penalty of $300,000.

CFTC Order

CFTC Press Release
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In re Nathan Harris (A.P. Sept. 9, 2019, Settled)

Action against Respondent, a registered introducing broker, for allegedly trading without authorization from customers.  According to the CFTC, Respondent traded on speculative investments without specific authorization from customers and traded without signed powers of attorney from customers.  Respondent has agreed to pay a $1.25 million civil monetary penalty.

CFTC Order

CFTC Press Release
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CFTC v. Dominick Vincent Carducci and VOS Capital Management, LLC (S.D.N.Y. Sept. 9, 2019, Contested)

Action against Defendants, a foreign exchange trading company and its principal, for alleged fraud.  According to the CFTC, Defendants solicited investor funds for a purported foreign-exchange investment opportunity and used the proceeds to make Ponzi-like payments to earlier investors and to pay personal expenses.

CFTC Complaint

CFTC Press Release
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In re Options Clearing Corp. (A.P. Sept. 3, 2019, Settled)

Actions against Respondent, a registered clearing agency, for alleged failure to implement adequate risk management policies. According to the SEC and CFTC, Respondent did not implement and enforce adequate policies and procedures in connection with financial risk management, operations, and information-systems security. Further, the SEC alleges that Respondent changed policies without seeking approval required by the SEC. Respondent has agreed to pay $15 million in civil penalties to the SEC and $5 million in civil
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CFTC v. Yukom Communications, et al. (N.D. Ill. Aug. 12, 2019, Contested)

Action against Defendants, five binary-options firms and four associated individuals, for alleged fraud.  According to the CFTC, Defendants solicited investor funds for a binary-options trading scheme.  The CFTC alleges that Defendants manipulated trade outcomes to force customer losses, concealed the fact that Defendants were taking the opposite sides of customer trades, and misrepresented the skills, location, and identities of its brokers, among other alleged violations.

CFTC Complaint

CFTC Press Release

 
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