Release Number 8787-23
Federal Court Orders Chinese National to Pay More than $350,000 for Fraudulent Scheme to Trade Against Employer
September 27, 2023
Washington, D.C. — The Commodity Futures Trading Commission today announced the U.S. District Court for the Northern District of Illinois entered a consent order on September 26 imposing a permanent injunction, disgorgement, and civil monetary penalty against Dichao Xie, a resident of China.
The order resolves a CFTC action filed on March 28, 2023. [See CFTC Press Release No. 8682-23.] The order finds, among other things, that Xie defrauded his former employer by misappropriating its confidential information to enter noncompetitive trades against it.
The order requires Xie to disgorge his ill-gotten gains, amounting to $175,772.40, and to pay a civil monetary penalty in the same amount. The order also permanently prohibits Xie from engaging in further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as charged, and imposes five-year trading and registration bans.
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Customers and other individuals can report suspicious activities or information, such as possible violations of commodity trading laws, to the Division of Enforcement via a toll-free hotline 866-FON-CFTC (866-366-2382), file a tip or complaint online, or contact the CFTC Whistleblower Office at whistleblower.gov. Whistleblowers may be eligible to receive between 10 and 30 percent of the monetary sanctions collected paid from the CFTC Customer Protection Fund financed through monetary sanctions paid to the CFTC by violators of the CEA.