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Enforcement Actions to Preserve Market Integrity and Protection of Market Users

Table Of Contents

Manipulation, Attempted Manipulation, and False Reporting

The CFTC utilizes every tool at its disposal to detect and deter illegitimate market forces. Through enforcement action, the Commission preserves market integrity and protects market users, demonstrating that the Commission has significant authority and intends to use it.

For example, CFTC enforcement efforts in the energy arena from December 2001 through September 2009 have resulted in 47 enforcement actions, charging 80 companies and individuals and assessing approximately $458 million in penalties.

Actions Taken Since December 2001 in Energy Markets
Number of Cases Filed or Enforcement Actions 47
Number of Entities/Persons Charged 80
Number of Dollars in Civil Monetary Penalties Assessed $458,525,000

Commodity Pools, Hedge Funds, Commodity Pool Operators, and Commodity Trading Advisors

Investors continue to fall prey to unscrupulous CPOs and CTAs, including CPOs and CTAs operating hedge funds. The majority of the Commission’s pool/hedge fund fraud cases are brought against unregistered CPOs and/or CTAs. These cases tend to involve Ponzi schemes or outright misappropriation, rather than legitimate hedge fund operations. From October 2000 through September 2009, the Commission filed a total of 95 enforcement actions alleging misconduct in connection with commodity pools and hedge funds.

Actions Taken Since October 2000 in Pool/Hedge Funds
Number of Cases Filed or Enforcement Actions 95
Cases/Actions Charging Commission Registrants 33
Number of Dollars in Penalties Assessed $618,666,128

Forex Fraud

The Commission vigorously uses its enforcement authority to combat the problem of foreign currency (forex) fraud. Since passage of the Commodities Futures Modernization Act of 2000 (CFMA) in December 2000 through September 2009, the Commission, on behalf of more than 26,000 customers, has filed 114 cases. Those efforts have thus far resulted in the award of approximately $476 million in restitution and $576 million in civil monetary penalties.

Actions Taken Since Passage of the CFMA in December 2000 in the Foreign Currency Markets
Number of Cases Filed or Enforcement Actions 114
Number of Entities/Persons Charged 437
Number of Customers Affected 26,865
Number of Dollars in Civil Monetary Penalties Assessed $576,119,521
Number of Dollars in Restitution Assessed $476,599,896
Last Updated: March 19, 2010