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, trading abuses and registration deficiencies.  The Division of Enforcement also opened more than 450 investigations in fiscal year 2011, which represents another program high.

During that same period, the CFTC obtained orders imposing over $290 million in civil monetary penalties, and directed payment of more than $160 million in restitution and disgorgement.  That represented more than double the prior fiscal year’s imposition of sanctions. 

The increase in enforcement actions, penalties and restitution orders are undoubtedly related to the passage of the Dodd-Frank Act and the political pressure on federal regulators to prevent improper behavior by financial institutions.  Assuming the CFTC stays on schedule, fiscal year 2012 will likely be another record year in enforcement actions due to the expanded enforcement authorities provided by the Dodd-Frank Act and the completion of the rulemaking pursuant to Act.