Law and Regulation
2008 Enforcement Actions
The CFTC Division of Enforcement investigates and prosecutes alleged violations of the Commodity Exchange Act and Commission regulations. The CFTC takes enforcement actions against individuals and firms registered with the Commission, those who are engaged in commodity futures and option trading on designated domestic exchanges, and those who improperly market futures and options contracts.
Cooperation Factors in Enforcement Division Sanction Recommendations
(originally published 2004; revised March 1, 2007, see CFTC Press Release 5296-07)
- Complaint: Paul Abad, Thirteen Thirty-Two, Inc., and Thirteen Thirty-Two, Inc. dba "MRTS Asset Management"
- Ex Parte Order: Paul Abad, Thirteen Thirty-Two, Inc., and Thirteen Thirty-Two, Inc. dba "MRTS Asset Management"
- Show Cause Order: Paul Abad, Thirteen Thirty-Two, Inc., and Thirteen Thirty-Two, Inc. dba "MRTS Asset Management"
CFTC Sanctions Former NYMEX Clerk Brian Keane $90,000 for Fraudulent Trade Practice Scheme, 5564-08
- Highlights: CFTC’s FY 2008 Enforcement Success in the Energy Sector
- Energy Transfer Partners LP and Three of Its Subsidiaries to Pay a $10 Million Penalty to Settle CFTC Action Alleging Attempted Manipulation of Natural Gas Prices
- CFTC Announces Agricultural Market Initiatives
- CFTC Announces Multiple Energy Market Initiatives
- CFTC Announces Formation of Retail Foreign Currency Fraud Enforcement Task Force
- Order: Michael Ross
- Order: Walter, Scott, Lev & Associates, LLC
- Order: Edward Sapienza, Jr.
- Order: Stephen E. Moore, docket 03-cv-9125
- Order: ItradeCurrency USA, LLC, docket 03-cv-9125
- Order: ItradeCurrency USA, LLC, docket 03-cv-9129
- Order: Stephen E. Moore, 03-cv-9129
- Fifteen Defendants from “Operation Wooden Nickel” Ordered by the Court to Pay Restitution, Return Ill-Gotten Gains, and Pay Fines Totaling over $25 Million
- Nine Defendants from “Operation Wooden Nickel” Ordered to Pay Restitution, Return Ill-Gotten Gains, and Pay Fines Totaling More Than $14,000,000
- U.S. District Court Orders Two New York Residents and a New York Firm to Pay More Than $11 Million for Their Roles in Defrauding Investors in Foreign Currency Schemes
CFTC Files Action to Revoke the Registration of Philadelphia Alternative Asset Management Company, 5554-08
- Order: Doreen Rose Valko and Frank Anthony DeSantis III
- Order: American Lighthouse Trading, Inc.
- Order: Yoos, Jr.
- CFTC Charges Florida Residents Doreen R. Valko and Frank Desantis And Their Company - International Investments Holdings, Corp (IIHC) -- with Defrauding Customers of More than $1.1 Million
- South Florida Court Orders International Investments Holdings Corporation to Pay Over $12 Million in Restitution and Civil Penalties for Foreign Currency Options Scam
- Order: Nations Investments, LLC, et al.
- U.S. Commodity Futures Trading Commission Files Action Against Futures Commission Merchant Nations Investments, LLC, for Failure to Maintain the Minimum Amount of Net Capital Required by Federal Law
- CFTC Amends Charges Against Nations Investments, LLC and its Principals; Violations Include Undercapitalization and False Statements
CFTC Sanctions Former NYMEX Broker Ryan Tremblay $50,000 for Fraudulent Trade Practice Scheme, 5536-08
CFTC Sanctions Former NYMEX Employee for Disclosing Non-Public Information to NYMEX Floor Brokers, 5534-08
CFTC Announces Formation of Retail Foreign Currency Fraud Enforcement Task Force, 5530-08
- Order: Edward Evors, Bally Lines Ltd. and GPS Fund Ltd.
- Order: Edward Evors, Bally Lines Ltd. and GPS Fund Ltd.
- Order: Edward Evors, Bally Lines Ltd. and GPS Fund Ltd.
- Order: Edward Evors, Bally Lines Ltd. and GPS Fund Ltd.
- U.S. Commodity Futures Trading Commission Files Action in Florida Federal Court Against Tampa Resident Edward J. Evors Alleging Misappropriation of Customer Funds
- New Jersey Court Order Imposes More Than $30 Million in Sanctions against Coyt E. Murray, Tech Traders, Inc., Tech Traders, Ltd., Magnum Investments, Ltd., and Magnum Capital Investments, Ltd. in Anti-Fraud Action Brought by the CFTC
CFTC Files Action to Revoke the Registrations of John C. Glase and Two Ohio Companies, 5526-08
- Order: Gilbert Philip Castillo, Jr.
- CFTC Charges California Resident Gilbert Philip Castillo, Jr., and His Company, Castle Enterprise Corporation, with Fraud
- California Court Orders Gilbert Philip Castillo, Jr. and Castle Enterprise Corporation to Pay More than $800,000 in Disgorgement and $480,000 in Civil Penalties for Fraud by an Unregistered Commodity Trading Advisor
- Complaint: Optiver US, LLC, et al.
- Case Background Information re CFTC v.Optiver US, et al.
- Chart: Allegations of Manipulative Conduct re CFTC v.Optiver US,, LLC, et al.
- Transcripts of Audio Files Attached as Exhibit A
- Statement of Acting Chairman Walter L. Lukken Regarding Enforcement Case Related to National Crude Oil Investigation
- Statement of Acting Director of Enforcement Stephen Obie Regarding Enforcement Case Related to National Crude Oil Investigation
Federal Court Order Freezes Assets of Texas Resident George D. Hudgins in CFTC Anti-Fraud Action, 5500-08
- Memorandum and Order: Lake Shore Asset Management Limited, et al.
- CFTC Files Second Amended Complaint Charging Philip J. Baker, Lake Shore Asset Management Limited, Lake Shore Group, and Several Commodity Pools with Fraud
- Illinois Federal Court Freezes Assets of Lake Shore Asset Management Limited; Court Finds that the Lake Shore Common Enterprise Committed Fraud
- Federal Court Extends CFTC Asset Freeze over Hedge Fund Lake Shore Asset Management Limited
- CFTC Files Contempt of Court Motion Against Hedge Fund Lake Shore Asset Management Limited
- Lake Shore Asset Management Limited, a Registered Commodity Pool Operator and Commodity Trading Advisor, Charged with Refusing to Make Its Books and Records Available to CFTC for Inspection
New Jersey Federal Court Freezes Assets of Hedge Fund in Fraud Action Brought by the CFTC, 5491-08
- Order: Walter, Scott, Lev & Associates, LLC, et al.
- Order: First Lexington Group, LLC et. al.
- Fifteen Defendants from “Operation Wooden Nickel” Ordered by the Court to Pay Restitution, Return Ill-Gotten Gains, and Pay Fines Totaling over $25 Million
- Nine Defendants from “Operation Wooden Nickel” Ordered to Pay Restitution, Return Ill-Gotten Gains, and Pay Fines Totaling More Than $14,000,000
- Customer Protection
- File a Complaint or Report Suspicious Activities
- Fraud Advisories
- Order: Walter, Scott, Lev & Associates, LLC, et al.
CFTC Sanctions Alaron Trading Corporation for Failing to Supervise Diligently Employees, 5488-08
- Order: Forefront Investments Corp., d/b/a CFG Trader, et al.
- U.S. Commodity Futures Trading Commission Files Action Against Futures Commission Merchant Forefront Investments Corporation d/b/a CFG Trader For Failure to Maintain the Minimum Amount of Net Capital Required by Federal Law
- Notice To Customers Of Forefront Investments Corp. D/B/A/ CFG Trader
- Complaint: Forefront Investments Corp., d/b/a CFG Trader, et al.
- Complaint: Lake Shore Asset Management Limited, et al
- Lake Shore Asset Management Limited, a Registered Commodity Pool Operator and Commodity Trading Advisor, Charged with Refusing to Make Its Books and Records Available to CFTC for Inspection
- CFTC Files Contempt of Court Motion Against Hedge Fund Lake Shore Asset Management Limited
- Federal Court Extends CFTC Asset Freeze over Hedge Fund Lake Shore Asset Management Limited
- Illinois Federal Court Freezes Assets of Lake Shore Asset Management Limited; Court Finds that the Lake Shore Common Enterprise Committed Fraud
Michigan Couple Ordered to Pay More Than $3.1 in Sanctions for “Private Hedge Fund” Fraud, 5451-08
CFTC Seeks to Revoke the Registration of Fort Lauderdale-based Worldwide Clearing, LLC, 5431-08