CFTC Charges Former Risk Management Consultant with Unauthorized Trading and Concealing Trading Losses

The CFTC charged a former risk management consultant and associated person of a registered futures commission merchant and provisionally registered swap dealer with fraud and unauthorized trading.

The CFTC's civil complaint alleged that, on behalf of the firm, the former consultant intentionally entered into thirty bilateral swap transactions with a customer but without the customer's consent. According to the CFTC, the former consultant engaged in these unauthorized swap transactions in order to conceal trading losses from his customers and the firm.

See: CFTC Complaint; CFTC Press Release.