Washington, D.C. – October 2, 2008 – The U.S. Commodity Futures Trading Commission (CFTC) announced record enforcement results for fiscal year 2008, securing over $630 million in penalties, restitution, and disgorgement. The agency’s Division of Enforcement pursued cases involving fraud, manipulation, and other misconduct throughout the year.
Stephen J. Obie, Acting Director of Enforcement for the CFTC, highlighted the division’s commitment to investigating every potential violation within the commodity markets. “This is real-time enforcement,” Obie stated, emphasizing the staff’s dedication to preventing market disruptions, ensuring financial integrity, and protecting participants from fraudulent practices.
During the fiscal year, the CFTC filed 40 new enforcement actions, with a significant focus on the energy sector. Thirteen of these actions targeted hedge funds, pool operators, and trading advisors. Two cases specifically involved attempted or actual manipulation in the energy markets, naming a former gasoline trader for BP Products North America Inc. and Optiver Holding BV, along with related companies and employees.
Since 2002, the CFTC’s Enforcement Division has filed 335 cases, resulting in awards exceeding $2.5 billion in civil monetary penalties, restitution, and disgorgement. Acting CFTC Chairman Walt Lukken affirmed the agency’s aggressive enforcement program, stating that market manipulation and fraud would not be tolerated. He commended the Enforcement Division, led by Obie, for their continued efforts to protect the U.S. futures markets.
The CFTC continued to prioritize investigations into manipulation, attempted manipulation, and false reporting within the energy markets throughout FY 2008. Since December 2002, the agency has charged a total of 42 companies and 31 individuals in the energy sector for violations of the Commodity Exchange Act, securing $445 million in penalties. Additionally, the CFTC has collaborated with the Department of Justice in the criminal prosecution of 47 traders and energy companies.
In a move considered unusual, the CFTC publicly disclosed ongoing investigations into potential misconduct in the national crude oil, cotton, and silver markets, citing unprecedented market conditions during the fiscal year. Further details regarding the silver market investigation were confirmed in September 2008.
Source: CFTC.gov
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