Blog Posts Tagged With CFTC

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
Continue Reading

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
Continue Reading

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
Continue Reading

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
Continue Reading

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
Continue Reading

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
Continue Reading

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
Continue Reading

In re Honouround (HK) International Trade Co. Ltd. (A.P. Sept. 14, 2018, Settled)

Action against Respondent, a Hong Kong-based company that trades soybean futures and exports soybeans to mainland China, for allegedly exceeding limits put in place by the CFTC for single month and all-month speculative position limits for soybeans futures contracts traded on the Chicago Board of Trade.  According to the CFTC, Respondent also failed to make required filings.  Respondent has agreed to pay a civil penalty of $300,000.

CFTC Press Release  

CFTC Order
Continue Reading

In re International Markets Live, Inc. (A.P. Sept. 14, 2018, Settled)

Action against Respondent, an unregistered foreign exchange trading advisor, for allegedly failing to properly register with the Commission as a commodities trading advisor despite having discretionary trading authority over customers’ forex accounts.  Respondent has agreed to pay a civil penalty of $150,000.

CFTC Order 

CFTC Press Release
Continue Reading

In re LegionFX, LLC (A.P. Sept. 14, 2018, Settled)

Action against Respondent, an unregistered foreign exchange trading advisor, for alleged failure to properly register with the Commission as a commodities trading advisor despite having discretionary trading authority over customers’ forex accounts.  Respondent has agreed to pay a civil penalty of $125,000 and post-judgment interest.

CFTC Order 

CFTC Press Release
Continue Reading

SEC v. Jason Amada, et al. (S.D.N.Y. Aug. 29, 2018, Contested)

Action against Defendants, an unregistered commodity trading advisor and its owner, in connection with alleged fraudulent solicitation of potential clients to open individually managed trading accounts for off-exchange foreign currency contracts.  According to the CFTC, Defendants misrepresented their forex trading experience and profitability, falsely claimed that they would implement a hedging strategy that would prevent losses of more than one percent, and attempted to conceal mounting losses by transferring commissions into a client’s account. The
Continue Reading

In re BNP Paribas Securities Corp. (A.P. Aug. 29, 2018, Settled)

Action against Respondent bank for attempted manipulation of the USD ISDAFIX benchmark.  According to the CFTC, Respondent bid, offered, and executed transactions in interest rate swap spreads in a manner designed to influence the published ISDAFIX in order to benefit Respondent’s derivatives positions.  The CFTC also alleges that Respondent attempted to manipulate and made false reports concerning the ISDAFIX by skewing Respondent’s submissions in order to benefit Respondent at the expense of its derivatives counterparties
Continue Reading

CFTC v. Christian Robert Mayer (A.P. Aug. 10, 2018, Settled)

Action against Respondent, a registered commodities trader, for allegedly engaging in unauthorized trades in cattle, crude oil and wheat futures in client accounts and then transferring successful trades to a personal account.  Respondent has agreed to pay a civil penalty of $100,000 and post-judgment interest.

CFTC Press Release
Continue Reading

In re R.J. O’Brien & Associates, LLC (July 30, 2018, Settled)

Action against Respondent, a registered Futures Commission Merchant, in connection with alleged failure to supervise a client’s alleged misallocation of executed bunched orders.  The CFTC alleges that, despite various red flags, Respondent failed to monitor its client’s use of Respondent’s trading platform to execute bunched orders and improperly allocated the bunched orders post-execution.  Respondent has agreed to pay a civil penalty in the amount of $600,000.

CFTC Order

CFTC Press Release
Continue Reading

In re Lansing Trade Group, LLC (July 12, 2018, Settled)

Action against Respondent, a commodities trading firm, in connection with alleged commodities price manipulation schemes.  The CFTC alleges that Respondent placed and then cancelled a number of “wheat shipping certificates,” to manipulate the appearance of market demand for wheat.  The CFTC further alleges the Respondent also attempted to drive the price of yellow corn by entering into below-market transactions with a counterparty.  Respondent has agreed to pay a $3,400,000 civil penalty.

CFTC Order

CFTC Press
Continue Reading

CFTC v. Harris Bruce Landgarten (July 2, 2018, Contested)

Action against Defendant, a commodity pool operator, in connection with alleged misappropriation of pool funds.  The CFTC alleges that Defendant would unilaterally, and without disclosure to investors, withdraw pool funds to reimburse Defendant‘s undocumented expenses.  The CFTC further alleges that Defendant made material misrepresentations regarding the value of pool funds to investors.

CFTC Complaint

CFTC Press Release
Continue Reading

In re JP Morgan Chase Bank (A.P. June 18, 2018, Settled)

Action against Respondent, a bank and registered swap dealer, in connection with an alleged scheme to manipulate the ISDAFIX benchmark.  The CFTC alleges that Respondent entered false submissions that Respondent knew it would not honor and engaged in manipulative trading in targeted interest rate products to benefit its derivatives positions.  The CFTC further alleges that Defendants clustered these false submissions and trades around ISDAFIX’s fixing time in an effort to manipulate the benchmark.  Respondent agreed
Continue Reading

LexBlog