For Release: October 2, 2007
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) announced today the enforcement results for its fiscal year 2007, which ended on September 30, 2007. During the year, the CFTC’s Division of Enforcement was awarded a record total of more than $540 million in civil monetary penalties, restitution, and disgorgement from respondents and defendants in actions involving fraud, manipulation, and other misconduct.
Of the forty-one new actions that were filed during fiscal year 2007, the Commission filed eight actions against hedge funds/pool operators/trading advisors, and three attempted manipulation cases in the energy markets involving Amaranth Advisors L.L.C., Energy Transfer Partners LP, and Marathon Petroleum Company LLC.
The 2007 results cap a five-year period where, staffed with an average of approximately 125 professionals, the CFTC’s Enforcement Division litigated more than 50 percent of its cases and was awarded in excess of $1.8 billion in civil monetary penalties, restitution, and disgorgement.
Last Five Years Produced All-Time High Manipulation and False Reporting Cases in the Energy Markets
“The CFTC’s impressive enforcement record compliments our effective principles-based approach to market oversight by sending the strong message that market malfeasance will not be tolerated,” said CFTC Acting Chairman Walt Lukken.
Since December 2002, the CFTC has charged a historical all-time high of 38 companies and 25 individuals in the energy sector for manipulation, attempted manipulation, false reporting and wash trading violations under the Commodity Exchange Act. The CFTC has thus far been awarded $308 million in civil monetary penalties from a number of the companies and individuals charged in those energy prosecutions. During the same period of time, the CFTC has worked cooperatively with the Department of Justice to assist in the criminal prosecution of 42 traders and energy companies. The Division of Enforcement continues its enforcement crackdown in the energy markets with dozens of traders, hedge funds, and brokerage firms currently under investigation for potential manipulation of various energy products.
R. David Gary
Last Updated: October 2, 2007