Washington, D.C. – Artem Obolensky, a Russian national and president of a Moscow-based bank, has been ordered to pay a $250,000 penalty for providing false statements to the Commodity Futures Trading Commission (CFTC), the agency announced today, January 2, 2014.
The CFTC issued an order finding that Obolensky knowingly made misleading claims during an interview with CFTC staff on October 13, 2011. The interview was part of an investigation into trading activity involving Obolensky’s bank and a private investment fund he co-owns, located in Cyprus. Both entities engage in foreign currency futures and options trading on the Chicago Mercantile Exchange.
Obolensky falsely stated to investigators that a specific trade in March 2012 Japanese Yen call options contracts between the bank and the fund was a “pure coincidence” and an “isolated” event. However, the CFTC found evidence that the two entities traded against each other on over 182 occasions, repeatedly adjusting their orders to guarantee matching trades. The agency determined Obolensky, who made the trading decisions for both accounts, was fully aware the trade was not coincidental.
“Witnesses in CFTC investigations must tell the truth,” said Gretchen Lowe, Acting Director of the CFTC’s Division of Enforcement. “If they do not, the CFTC will not hesitate to take action to enforce the Dodd-Frank’s prohibition against providing false or misleading information and impose sanctions.”
In addition to the $250,000 civil monetary penalty, the CFTC order requires Obolensky to cease and desist from further violations of the Commodity Exchange Act. The case highlights the CFTC’s enforcement of truthfulness in investigations, particularly under provisions added by the Dodd-Frank Act.
The CFTC investigation was led by Susan Gradman, Joseph Patrick, Scott Williamson, Rosemary Hollinger, and Richard B. Wagner.
Source: CFTC.gov
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