Washington, D.C. – The U.S. Commodity Futures Trading Commission (CFTC) settled charges against Wells Fargo Bank, N.A. on September 27, 2016, for failing to accurately report large trader information as required by law. The bank, headquartered in Sioux Falls, South Dakota, was found to have violated Section 4s(f)(1)(A) of the Commodity Exchange Act and related CFTC regulations.
The CFTC’s investigation revealed that from March 1, 2013, through November 13, 2015, every large trader report (LTR) submitted by Wells Fargo contained errors. These inaccuracies included missing data and formatting inconsistencies, specifically issues with Clearing Member Identifiers and swaption expiration dates. Accurate large trader reporting is crucial for the CFTC to monitor U.S. physical commodity markets effectively.
According to the CFTC’s order, Wells Fargo received its first error notification from the agency in July 2015. Following this, the bank began analyzing past reports and implemented changes to its data processing and reporting systems to achieve compliance with LTR requirements. These modifications are ongoing.
As a result of these violations, Wells Fargo has agreed to pay a $400,000 civil monetary penalty and cease and desist from any further violations of the Commodity Exchange Act and CFTC regulations. The bank has been provisionally registered with the CFTC as a Swap Dealer since December 31, 2012.
The CFTC staff members leading the investigation included Neel Chopra, Joseph Muoio, Michael Cazakoff, Candice Aloisi, Lenel Hickson Jr., and Manal Sultan. Assistance was also provided by Richard Galloway, Regina Sanders, and Edward Wehner from the CFTC’s Office of Data Technology.
Source: CFTC.gov
Related Federal Cases
- John Doe, Bank Fraud, South Dakota 2026 · Nebraska
- Lawrence Parker III, ATM Vandalism, South Dakota 2016 · New Hampshire
- Brian Jackson, Drug Trafficking, South Dakota 2023 · South Dakota
- Jordan Charles Opdahl, Child Pornography, South Dakota 2023 · South Dakota
- 368 Guns Seized in South Dakota Crackdown · South Dakota
