Washington, D.C. – Goldman Sachs & Co. has been penalized $5.5 million by the Commodity Futures Trading Commission (CFTC) for violating a prior order and committing recordkeeping violations, the agency announced today. The violations stem from failures to properly record and retain audio files related to trading communications.
The CFTC order finds that Goldman Sachs violated the cease-and-desist provision of a November 2019 order, which addressed previous recordkeeping failures. That earlier order resulted in a $1 million penalty after the firm failed to record phone lines for a trading desk for 20 days in January and February 2014 due to a hardware malfunction.
According to the CFTC, subsequent recordkeeping failures occurred beginning in March 2020. Increased usage of a vendor’s recording service for mobile devices during the pandemic led to hardware issues, resulting in thousands of unrecorded calls. Goldman discovered the problem while investigating employee reports of poor call quality, implementing interim and permanent fixes by September 2020.
Separately, the firm began using software in March 2020 designed to replicate a traditional trading turret via computer. A software issue discovered in May 2020 caused the system to sometimes fail to record audio, leading to thousands more unrecorded calls. A permanent fix was implemented in June 2022.
The CFTC acknowledged Goldman Sachs’ cooperation with the investigation and its remediation efforts. The order requires Goldman to cease and desist from further violations of the Commodity Exchange Act and CFTC regulations regarding recordkeeping.
“As this case demonstrates, the CFTC will continuously pursue swap dealers that fail to meet their recording obligations and there will be consequences for violating CFTC orders, including increased penalties,” stated Ian McGinley, Director of Enforcement. “We are committed to holding swap dealers accountable when they fail to comply with their regulatory obligations and fail to abide by obligations imposed by prior CFTC orders.”
The case was led by CFTC staff members Devin Cain, Alejandra de Urioste, R. Stephen Painter, Jr., David W. MacGregor, Lenel Hickson, Jr., Manal Sultan, and former staff member Gabriella Geanuleas.
Source: CFTC.gov
Related Federal Cases
- Joshua Lee Hernandez, Capitol Assault, District of Columbia 2021 · Washington
- Bryan Rice, Fentanyl & Gun Crimes, District of Columbia 2024 · Washington
- D.C. Woman, Covid-19 Relief Heist, District of Columbia 2024 · Washington
- DeAngelo Wayne McNeil, Gun & Crack Cocaine, District of Columbia 2024 · Washington
- Mysire Poge, Illegal Gun Possession, District of Columbia 2024 · Washington
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News