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Category Archives: CFTC Enforcement

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So Who Is My Lawyer Anyway?

Posted in CFTC Enforcement, FINRA Enforcement, Internal Investigations, Law Firms and Lawyers

A firm faced with a regulatory investigation should hire outside counsel to bring objective analysis to the situation. Although it may seem simple, the question that must first be addressed is who the lawyer represents. If the firm itself is the subject of the inquiry, then the firm needs representation. However, that same lawyer should… Continue Reading

So You Thought You Wanted To Be A Securities Lawyer

Posted in CFTC Enforcement, Federal and State Criminal Activities, Financial Industry Trends, FINRA Enforcement, NFA Enforcement, SEC Enforcement

Lawyers have often been the brunt of cruel jokes. But now, a recent study reported on by the Bureau of National Affairs shows, lawyers are the target of securities regulators. Why the sudden interest? For one, cooperation initiatives between regulators and those caught violating securities law convince these people to turn on their lawyer who… Continue Reading

Energy Executives Convicted Of Sending False Reports To Industry Newsletters

Posted in CFTC Compliance, CFTC Enforcement

Its not often I write about criminal cases but this is one that all executives in the commodities industry need to know about.  In Brooks v. United States, 681 F.3d 678 (5th Cir. 2012), the Court affirmed the convictions of three executives in the natural gas industry for falsely reporting natural gas trades in violation of… Continue Reading

SEC AND CFTC LAUNCH AN ANTI MONEY LAUNDERING GROUP

Posted in CFTC Compliance, CFTC Enforcement, JOBS Act, Money Laundering, SEC Compliance, SEC Enforcement, Securities Legislation

The SEC and CFTC launched a working group to discuss and identify money laundering vulnerabilities.  These issues have lingered for awhile.  Both agencies believe that there is an opportunity to clarify their positions relating to money laundering and if their programs could potentially uncover such events.  This group will also include representatives from the Treasury… Continue Reading

Dodd-Frank; Is It Doomed To Fail?

Posted in Broker-Dealer Regulation, CFTC Enforcement, Compliance and Supervision, Dodd-Frank, FINRA Compliance, FINRA Enforcement, Investment Adviser Regulation, Registered Representatives, SEC Compliance, SEC Enforcement, SEC Organization, Securities Legislation

Much has happened in nearly one since since the Dodd-Frank Act became effective, and much more remains.  According to the recent thoughts of one commentator, Kyle Colona of Compliance EX, Dodd-Frank may be doomed to fail as it faces it first year of existence. Colona noted five factors working against the full implementation of the… Continue Reading

CFTC Revises Registration and Reporting Requirements for CPOs and CTAs

Posted in CFTC Compliance, CFTC Enforcement

On February 9, 2012, the CFTC issued a final rule regarding changes to Part 4 of the CFTC’s regulations involving registration and compliance obligations for commodity pool operators (“CPO”) and commodity trading advisors (“CTA”).  Among other things, the rule rescinds the exemption from registration provided in Rule 4.13(a)(4) and sets forth additional annual reporting requirements… Continue Reading

SEC Issues guidelines for Form PF Reporting

Posted in Broker-Dealer Regulation, CFTC Compliance, CFTC Enforcement, Compliance and Supervision, Dodd-Frank, Hedge and Private Equity Funds, Investment Adviser Regulation, SEC Compliance, SEC Enforcement

The SEC published a small entity compliance guide for investment advisers relating to the new Form PF.  These new reporting requirements affect SEC registered investment advisers with at least $150 million dollars in assets under management.  Some of these new guidelines will also apply to CFTC commodity pool operators and commodity trading advisers. The SEC… Continue Reading

PSST!!! Want to Save Money on Your Legal Bills? Read on. . .

Posted in CFTC Enforcement, Federal and State Criminal Activities, FINRA Compliance, FINRA Enforcement, Intra-Industry Arbitrations, NFA Enforcement, PCAOB Enforcement, Public Customer Arbitrations, SEC Compliance, SEC Enforcement, Securities Class Actions, State Enforcement

Late last week, one of my colleagues sent me an e-mail where he copied 8 other people, half of them I could not identify if my life depended upon it.  I then heard about the person who had a Twitter account with over 17,000 follwers, and was now being sued by his former employer over ownership of the account–… Continue Reading

SEC Rule Making in 2012

Posted in Broker-Dealer Regulation, CFTC Enforcement, Compliance and Supervision, Dodd-Frank, Financial Industry Trends, Hedge and Private Equity Funds, Investment Adviser Regulation, Registered Representatives, SEC Compliance

Although the SEC’s rulemaking deferral regarding the uniform fiduciary standard has gained much press, the SEC’s other rulemaking initiatives pursuant to the Dodd-Frank Act march on, and will have a significant effect on broker dealers and investment advisors in the upcoming year. In particular, the SEC has scheduled a joint SEC-CFTC report to Congress on stable value contracts, and the adoption of rules… Continue Reading

Josh Horn’s Ponzi Scheme Response Road Map

Posted in CFTC Compliance, CFTC Enforcement, Federal and State Criminal Activities, FINRA Compliance, FINRA Enforcement, NFA Enforcement, PCAOB Enforcement, SEC Compliance, SEC Enforcement, State Enforcement

My colleague, Josh Horn, has written an amazing article that should be on every compliance officer’s desk.  It details methods for investigating and responding to ponzi schemes.  In this day and age, we are met with another Ponzi scheme occurring or being uncovered almost every day.  Josh’s article is an exceptional primer since it details… Continue Reading

CFTC’s Record Enforcement Year

Posted in CFTC Enforcement, Dodd-Frank

The CFTC recently announced that it filed a record 99 enforcement actions in fiscal year 2011, which represented a whopping 74% increase over the prior fiscal year.  The CFTC charged individuals and corporations with a broad range of violations, including manipulation of commodity prices, perpetration of Ponzi schemes and other frauds, supervision and accounting failures,… Continue Reading

Securities Podcast with Ernest Badway

Posted in Broker-Dealer Regulation, CFTC Compliance, CFTC Enforcement, Compliance and Supervision, Federal and State Criminal Activities, Financial Industry Trends, FINRA Compliance, FINRA Enforcement, Hedge and Private Equity Funds, Intra-Industry Arbitrations, Investment Adviser Regulation, NFA Enforcement, PCAOB Enforcement, Public Customer Arbitrations, Registered Representatives, Sarbanes-Oxley, SEC Enforcement, Securities Class Actions, State Enforcement

Thought you might be interested in a recent podcast I did concerning my securities law practice.  http://web.me.com/cordpar/Client_Development_Tips/Law_Consulting_Coaching_Podcast/Entries/2011/10/28_Developing_a_Securities%2C_White_Collar_and_Complex_Litigation_Practice.html

The Volcker Rule: the Greatest and/or Worst Regulation Ever?

Posted in CFTC Compliance, CFTC Enforcement, Compliance and Supervision, Dodd-Frank, Financial Industry Trends, SEC Compliance, SEC Enforcement

The SEC recently joined the FDIC, the OCC and the Federal Reserve in advancing the Volcker Rule for public comment.  The Volcker Rule is shaping up to be one of Dodd-Frank’s most contentious and confusing new regulations. Volcker Rule proponents hope that it will, like the late-great Glass-Steagal Act before it, rein in risk-relishing bankers by… Continue Reading

CFTC Issues Final Rules For Whistleblowers

Posted in CFTC Enforcement

The CFTC recently issued its final rules outlining the procedures, forms and standards that a potential whistleblower must follow to make a claim and receive an award.  The rules will be located at 17 CFR Part 165 and will become effective October 24, 2011.  Here are the highlights: the Commission harmonized its rules with those… Continue Reading